ON Semiconductor Corporation announced financial results for the second quarter of 2017. Total revenue in the second quarter of 2017 was $1,338.0 million, up approximately 52 percent compared to the same quarter last year.
Second quarter revenue was down approximately seven percent as compared to first quarter GAAP revenue, which included a one time benefit of approximately $155 million from change in revenue recognition to “sell-in” method from “sell-through” method. Second quarter revenue was up approximately four percent as compared to non-GAAP revenue in the first quarter.
“Impressive margin expansion and strong free cash flow generation in the second quarter clearly demonstrate the strength of our operating model,” said Keith Jackson, president and CEO of ON Semiconductor. “Along with expansion in our margins, our revenue momentum remains strong, driven by strengthening customer engagement for power, analog and sensor semiconductor solutions. Customers are increasingly relying on us as a provider of enabling technologies for automotive, industrial and communications applications.”
Mr. Jackson continued, “commentary from our global customers and macro-economic data point to steadily improving demand for our products from most end-markets and geographies. Along with steadily improving demand environment, industry-wide supply side dynamics remain generally healthy with stable inventory levels and disciplined capacity additions.”
Based on product booking trends, backlog levels and estimated turns levels, the Company anticipates that total revenue in the third quarter of 2017 will be approximately $1,340 to $1,390 million. Backlog levels for the third quarter of 2017 represent approximately 80 to 85 percent of anticipated third quarter 2017 revenue.
The outlook for the third quarter of 2017 includes anticipated stock-based compensation expense of approximately $16 million to $18 million. Net cash paid for income taxes is expected to be $13 million to $17 million.