Robust Margin Expansion in ON Semiconductor’s Q2 2018 Results
ON Semiconductor Corporation announced that total revenue in second quarter of 2018 was $1,455.9 million, up approximately 9 percent compared to GAAP revenue in second quarter of 2017. Second quarter 2018 revenue was up approximately 6 percent as compared to revenue in first quarter of 2018.
"We delivered strong results in the second quarter. Demand for our products continues to accelerate as customers are increasingly relying on us to provide key technologies for newly emerging applications in automotive and industrial markets. With a pipeline of new products and strengthening customer engagement, we are well positioned to benefit from disruptive trends in our markets," said Keith Jackson, president and CEO of ON Semiconductor.
"Along with strong revenue growth, we continue to deliver robust margin expansion, which points to strong leverage in our operating model."
"We are increasingly upbeat about our long term outlook, and we are making prudent investments in our manufacturing infrastructure to sustain our revenue momentum and to further strengthen our industry-leading cost structure,” concluded Jackson.
Summary of Second Quarter results:
- Revenue of $1,455.9 million
- Gross margin of 38.1 percent
- GAAP operating margin of 13.5 percent and non-GAAP operating margin of 16.3 percent
- Operating cash flow of $268.5 million and free cash flow of $115.6 million
- GAAP earnings per share of $0.35 and non-GAAP earnings per share of $0.46
Based on product booking trends, backlog levels and estimated turns levels, the Company anticipates that total revenue in third quarter of 2018 will be approximately $1,485 to $1,535 million. The outlook for third quarter of 2018 includes anticipated stock-based compensation expense of approximately $19 million to $21 million. Net cash paid for income taxes is expected to be $11 million to $15 million.