ON Semiconductor Updates Q2 2003 Guidance
ON Semiconductor Corp. (Phoenix, AZ) provided guidance that its second-quarter 2003 revenues would be flat as compared to the first-quarter 2003 revenues. The company's revenues for the first quarter of 2003 were $266.5 million. Based upon end-market weakness in the automotive and wireless markets, coupled with approximately 3% sequential average price declines in all of its markets, ON Semiconductor now anticipates that revenues for the second quarter of 2003 will decline by 3% to 5% as compared to the first quarter of 2003. However, as a result of previously announced cost-reduction actions, the company still projects that gross margins will improve by 100 to 200 basis points sequentially over the first quarter of 2003.
"Although disappointed by the top line weakness, I am encouraged that we have reduced our break-even revenue level through our cost-reduction efforts," said Keith Jackson, ON Semiconductor president and CEO. "This will give us a better cost profile going forward."