Q2 2024 ON Semiconductor Corp Earnings Call Transcript
Key Points
- ON Semiconductor Corp (ON) exceeded the midpoint of their guidance for revenue, non-GAAP gross margin, and non-GAAP earnings per share.
- The company is seeing stabilization in demand in core markets, with some pockets of improvement.
- ON Semiconductor Corp (ON) has secured significant design wins in power solutions, including a major deal with Volkswagen Group.
- The company continues to invest in its strategic portfolio, including the acquisition of SWIR Vision Systems to enhance its industrial and defense product offerings.
- ON Semiconductor Corp (ON) is a market leader in silicon carbide technology, with strong penetration in the Chinese BEV market and expanding applications in industrial and AI data centers.
- Q2 revenue declined 7% sequentially and 17% year-over-year, driven by ongoing inventory correction in the automotive and industrial end markets.
- Automotive revenue declined 11% quarter-over-quarter and 15% year-over-year.
- Industrial revenue was down 2% sequentially and 23% year-over-year.
- Revenue for all business groups (Power Solutions, Analog and Mixed Signal, Intelligent Sensing) saw significant year-over-year declines.
- The company is facing short-term demand uncertainty and continues to operate with underutilization, reaching a historical trough of 65%.
Good day, and thank you for standing by. Welcome to the onsemi second-quarter 2024 earnings conference call. (Operator Instructions) Please be advised, today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Parag Agarwal. Please go ahead.
Thank you, Kevin. Good morning, and thank you for joining onsemi's second-quarter 2024 quarterly results conference call. I'm joined today by Hassane El-Khoury, our President and CEO; and Thad Trent, our CFO.
This call is being webcast on the Investor Relations section of our website at www.onsemi.com.com. A replay of this webcast, along with our 2024 second-quarter earnings release, will be available on our website approximately one hour following this conference call. And the recorded webcast will be available for approximately 30 days following this conference call. Additional information
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