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

November 02, 2012 | About:
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10qk

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ON Semiconductor Corp. (ONNN) filed Quarterly Report for the period ended 2012-09-28.

On Semiconductor Corporation has a market cap of $2.8 billion; its shares were traded at around $6.27 with a P/E ratio of 9.6 and P/S ratio of 0.8.

Highlight of Business Operations:

Based upon product booking trends, backlog levels, and estimated turns levels, we estimate that our revenues will be approximately $650 million to $690 million in the fourth quarter of 2012. Backlog levels for the fourth quarter of 2012 represent approximately 80% to 85% of our anticipated fourth quarter 2012 revenues. We estimate average selling prices for the fourth quarter of 2012 will be down approximately 2% when compared to the third quarter of 2012. For the fourth quarter of 2012, we estimate that gross margin as a percentage of revenues will be approximately 30% to 32%.

Research and development expenses were $90.1 million in the third quarter of 2012 compared to $91.5 million in the third quarter of 2011, representing a decrease of $1.4 million or 1.5%. Research and development expenses represented 12.4% and 10.2% of revenues for the third quarter of 2012 and the third quarter of 2011, respectively. Research and development expenses were down slightly due to reduced usage of engineering materials, offset by an increase in depreciation associated with new capital projects and design software.

Selling and marketing expenses were $44.2 million in the third quarter of 2012 compared to $48.4 million in the third quarter of 2011, representing a decrease of $4.2 million or 8.7%. Selling and marketing expenses represented 6.1% and 5.4% of revenues for the third quarter of 2012 and the third quarter of 2011, respectively. The decrease is primarily attributable to reductions in bonus and share-based compensation expenses and reduced travel costs, as well as a reduction in outside services.

Revenues from the automotive, industrial, medical and mil-aero products group decreased $74.5 million or 11.2% from the nine months ended September 30, 2011 to the nine months ended September 28, 2012. The decrease in revenue can be attributed to a decrease in revenue from ASIC products of $42.4 million or 9.1%, a decrease in revenue from memory products of $17.3 million or 27.9%, and a decrease in foundry services revenue of $8.6 million or 42%, with the remainder primarily associated with high-frequency products.

Research and development expenses were $279.3 million for the nine months ended September 28, 2012 compared to $271.8 million for the nine months ended September 30, 2011, representing an increase of $7.5 million or 2.8%. Research and development expenses represented 12.6% and 10.2% of revenues for the nine months ended September 28, 2012 and for the nine months ended September 30, 2011, respectively. The increase in the period is due to increased costs related to the usage of engineering materials and depreciation for new capital projects and design software.

Read the The complete Report

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