ON Semiconductor Updates Q3 2002 Guidance
ON Semiconductor LLC (Phoenix, AZ) updated its third-quarter 2002 guidance. With the slowness of the current economy affecting the semiconductor industry, ON Semiconductor now expects third-quarter revenues to be flat to slightly down. As the company continues to execute on its higher-margin new products and cost-saving initiatives, it expects its gross margins to expand by an estimated 100 basis points for the current quarter.
"As we expected, the automotive market is seasonably down due to model changeovers. The consumer market remains somewhat soft, but we've limited the effect on our revenues by our further penetration of the game-console arena," said Steve Hanson, ON Semiconductor president and CEO. "The wireless market continues to show strength and our recent product introductions are designed to take advantage of this trend. During the historically slow summer market, we've continued to make progress in numerous areas, most notably in the area of power management."