46% revenue growth driven primarily by Fairchild acquisition
ON Semiconductor Corporation announced financial results for the third quarter of 2017. Total revenue in the third quarter of 2017 was $1,390.9 million, up approximately 46 percent compared to the same quarter last year, primarily due to inclusion of Fairchild's results for full quarter in third quarter of 2017. Third quarter revenue was up approximately four percent as compared to revenue in second quarter of 2017.
"Once again, we demonstrated strong margin expansion and free cash flow generation. This impressive margin and free cash flow performance clearly establishes the strength of our operating model,” said Keith Jackson, president and CEO of ON Semiconductor.
“Our revenue momentum continues to accelerate as we benefit from our years of investments in technologies and capabilities that are enabling key innovations in automotive, industrial and communications end-markets.
“Through our investments, we have been successful in transforming ON Semiconductor into a company driven by sustainable secular growth drivers in the fastest growing semiconductor end-markets from a company driven by macroeconomic and industry cyclicality. Our customers remain optimistic about near to mid-term demand trends for most end-markets and geographies.
“Along with a favorable demand environment, industry wide supply-demand dynamics remain healthy, with no meaningful changes in inventory levels and lead times from the second quarter of 2017,”Jackson concluded.
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Based on product booking trends, backlog levels and estimated turns levels, the Company anticipates that total revenue in the fourth quarter of 2017 will be approximately $1,325 to $1,375 million. Backlog levels for the fourth quarter of 2017 represent approximately 80 to 85 percent of anticipated fourth quarter 2017 revenue.
The outlook for the fourth 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 $17 million to $21 million.
