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ON Semiconductor Corp. Reports Operating Results (10-Q)

August 03, 2012 | About:
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ON Semiconductor Corp. (ONNN) filed Quarterly Report for the period ended 2012-06-29.

On Semiconductor Corp. has a market cap of $3.2 billion; its shares were traded at around $6.84 with a P/E ratio of 9.4 and P/S ratio of 0.9.

Highlight of Business Operations:

Based upon product booking trends, backlog levels, and estimated turns levels, we estimate that our revenues will be approximately $725.0 million to $765.0 million in the third quarter of 2012. Backlog levels for the third quarter of 2012 represent approximately 80% to 85% of our anticipated third quarter 2012 revenues. We estimate average selling prices for the third quarter of 2012 will be down approximately 1% to 2% compared to the second quarter of 2012. For the third quarter of 2012, we estimate that gross margin as a percentage of revenues will be approximately 33.5% to 34.5%.

Selling and marketing expenses were $47.0 million in the second quarter of 2012 compared to $51.2 million in the second quarter of 2011, representing a decrease of $4.2 million or 8.2%. Selling and marketing expenses represented 6.3% and 5.7% of revenues for the second quarter of 2012 and the second quarter of 2011, respectively. The decrease in selling and marketing expenses was primarily due to a reduction in incentive compensation as a result of our lack of achievement of certain financial goals, decreased travel associated with acquisition-related activities, and a decrease in various consulting fees associated with acquisition-related activities.

Revenues from the automotive, industrial, medical and mil-aero products group decreased $32.9 million or 7.5% from the six months ended July 1, 2011 to the six months ended June 29, 2012. The decrease in revenue can be attributed to a decrease in revenue of $14.6 million or 5.6% for ASIC products, memory products of $10.2 million or 25.2%, analog products of $3.2 million or 8.5%, ECL products of $5.4 million or 18.1%, ASSP products of $2.2 million or 15.2%, and foundry services of $0.8 million or 2.0%, offset by an increase of $3.5 million or 26.3% in power switch products.

Revenues from the standard products group decreased $65.4 million or 14.1% from the six months ended July 1, 2011 to the six months ended June 29, 2012. The revenue decrease is primarily attributable to decreases from discrete standard products of $45.5 million or 17.6%, TMOS products of $18.8 million or 12.8%, and analog products of $1.1 million or 2.0%.

Selling and marketing expenses were $92.6 million for the six months ended June 29, 2012 compared to $100.6 million for the six months ended July 1, 2011, representing a decrease of $8.0 million or 8.0%. Selling and marketing expenses represented 6.2% and 5.7% of revenues for the six months ended June 29, 2012 and for the six months ended July 1, 2011, respectively. The decrease in selling and marketing expenses was primarily due to decreased incentive compensation as a result of our lack of achievement of certain financial goals, a decrease in share-based compensation, decreased travel associated with acquisition-related activities, and a decrease in various consulting fees.

Read the The complete Report

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