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ON Semiconductor Revenue Down Sequentially and Year-to-Year

ON Semiconductor Corporation announced that 2019 second quarter revenue was $1,347.7 million, down approximately 7 percent compared to 2018 second quarter revenue. 2019 second quarter revenue was down approximately 3 percent as compared to 2019 first quarter revenue.

During the second quarter, ON Semiconductor announced that it has signed a definitive agreement to acquire, in a phased transaction, a 300mm fab located at East Fishkill, NY and related assets from GLOBALFOUNDRIES. ON Semiconductor also announced the close of its previously announced acquisition of Quantenna Communications, a leader in high performance Wi-Fi semiconductors.

“Business conditions continue to be soft, and we expect to see sub-seasonal demand trends in the near-term, as geopolitical factors will likely continue to weigh on demand. Despite near-term weakness in demand, key secular trends driving our business remain intact,” said Keith Jackson, President and CEO of ON Semiconductor.

“Against a backdrop of soft demand and limited visibility, we continue to focus on execution to mitigate the impact of current softness in demand. We remain confident in our strategy of focusing on secular megatrends in automotive, industrial, and cloud-power end-markets, and we are prudently investing to further strengthen our position in these markets,” Jackson added.

Third Quarter 2019 Outlook

Based on product booking trends, backlog levels, and estimated turns levels, the Company anticipates 2019 third quarter revenue to be approximately $1,355 to $1,405 million.

GAAP gross margin for third quarter of 2019 is expected to be between 35.2 percent and 36.2 percent. Non-GAAP gross margin for third quarter of 2019 is expected to be between 36.7 percent and 37.7 percent.

The 2019 third quarter outlook also includes anticipated stock-based compensation expense of approximately $21 million to $23 million. Net cash paid for income taxes is expected to be $11 million to $15 million.