ON Semiconductor Corp. announced that total revenues in the third quarter of 2007 were $402.9 million, an increase of approximately 6% from the second quarter of 2007. Total revenues during the third quarter included approximately $381.1 million of product revenues and approximately $21.8 million of manufacturing services revenues.
During the third quarter of 2007, the company reported net income of $63.8 million, or $0.20 per share on a fully diluted basis. Third quarter 2007 results include approximately $4.1 million associated with stock-based compensation expense and approximately $2.0 million, or $0.01 per fully diluted share, associated with restructuring, asset impairments and other. During the second quarter of 2007, the company reported net income of $63.3 million, or $0.21 per share on a fully diluted basis. Second quarter 2007 results included approximately $3.5 million associated with stock-based compensation expense.
On a mix-adjusted basis, average selling prices in the third quarter of 2007 were down approximately two to three percent from the second quarter of 2007. The company’s total gross margin in the third quarter was 38.6 percent, an increase of approximately 30 basis points as compared to the second quarter of 2007, primarily due to higher revenue which was partially offset by a $5 million reduction of internal inventories. EBITDA for the third quarter of 2007 was $95.5 million and included approximately $2.0 million associated with restructuring, asset impairments and other. EBITDA for the second quarter of 2007 was $93.9 million.
"During the third quarter of 2007 we grew our cash and cash equivalents position by a record $71.3 million to a balance of $327.1 million," said Keith Jackson, ON Semiconductor President and CEO. "We will continue to review utilizing our cash position for potential shareholder friendly actions such as debt repurchases, common stock repurchases and strategic acquisitions. On the business front, product revenues grew by over 7% sequentially driven primarily by our Consumer Electronics and Computing end-markets. As we enter the fourth quarter of 2007, we remain cautiously optimistic about the overall consumer demand environment for the upcoming holiday season."
