- Revenue of $1,381.8 million
- GAAP gross margin of 34.4 percent and non-GAAP gross margin of 35.8 percent
- GAAP operating margin of (3.2) percent and non-GAAP operating margin of 13.0 percent
- GAAP diluted loss per share of $0.15 and non-GAAP diluted earnings per share of $0.33
PHOENIX — (BUSINESS WIRE) — October 27, 2019 — ON Semiconductor Corporation (Nasdaq: ON) today announced that 2019 third quarter revenue was $1,381.8 million, down approximately 10 percent compared to 2018 third quarter revenue. 2019 third quarter revenue was up approximately three percent as compared to 2019 second quarter revenue. Third quarter 2019 GAAP financial results include a one-time charge of approximately $170 million to settle all pending intellectual property litigation with Power Integrations, Inc.
“Business conditions show modest signs of improvement as supply chain inventories have normalized and orders are trending along normal seasonality. However, global macroeconomic and geopolitical uncertainty still persists, and visibility into end-market demands remains limited,” said Keith Jackson, president and CEO of ON Semiconductor. “Despite the current challenges, key drivers powering our business remain intact, and we are seeing strong traction in key areas of strategic thrust. We believe that with our investments in automotive, industrial, and cloud-power markets, and into our operations, we are well positioned to deliver strong revenue and margin performance.”
Third Quarter Results (GAAP) |
||||||||||||||||||
(in millions, except per share data) |
3Q 2019 |
3Q 2018 |
Year-Over-
|
2Q 2019 |
Sequential
|
|||||||||||||
Revenue |
$ |
1,381.8 |
|
$ |
1,541.7 |
(10 |
) |
% |
$ |
1,347.7 |
3 |
|
% |
|||||
Gross Profit |
$ |
475.2 |
|
$ |
596.6 |
(20 |
) |
% |
$ |
499.0 |
(5 |
) |
% |
|||||
Operating Income (Loss) |
($ |
43.9 |
) |
$ |
241.6 |
(118 |
) |
% |
$ |
158.3 |
(128 |
) |
% |
|||||
Net Income (Loss) Attributable to ON Semiconductor Corporation |
($ |
60.7 |
) |
$ |
166.9 |
(136 |
) |
% |
$ |
101.8 |
(160 |
) |
% |
|||||
| Diluted Earnings (Loss) Per Share |
($ |
0.15 |
) |
$ |
0.38 |
(139 |
) |
% |
$ |
0.24 |
(163 |
) |
% |
|||||
| Diluted Share Count |
|
410.4 |
|
|
435.3 |
(6 |
) |
% |
|
417.7 |
(2 |
) |
% |
|||||
| Third Quarter Results (Non-GAAP) |
|||||||||||||||||
| (in millions, except per share data) |
3Q 2019 |
3Q 2018 |
Year-Over-
|
2Q 2019 |
Sequential
|
||||||||||||
| Revenue |
$ |
1,381.8 |
$ |
1,541.7 |
(10 |
) |
% |
$ |
1,347.7 |
3 |
|
% |
|||||
| Gross Profit |
$ |
494.2 |
$ |
596.8 |
(17 |
) |
% |
$ |
499.6 |
(1 |
) |
% |
|||||
| Operating Income |
$ |
179.9 |
$ |
275.1 |
(35 |
) |
% |
$ |
211.4 |
(15 |
) |
% |
|||||
| Net Income Attributable to ON Semiconductor Corporation |
$ |
136.8 |
$ |
244.9 |
(44 |
) |
% |
$ |
175.0 |
(22 |
) |
% |
|||||
| Diluted Earnings Per Share |
$ |
0.33 |
$ |
0.57 |
(42 |
) |
% |
$ |
0.42 |
(21 |
) |
% |
|||||
| Diluted Share Count |
|
412.3 |
|
429.4 |
(4 |
) |
% |
|
413.8 |
— |
% |
||||||
| Third Quarter Key Cash Flow Items |
|||||||||||||||
| (in millions) |
3Q 2019 |
|
3Q 2018 |
|
Year-Over-
|
|
2Q 2019 |
|
Sequential
|
||||||
| Cash Taxes, net of indemnification |
$ |
14.1 |
$ |
12.6 |
12 |
|
% |
$ |
12.9 |
9 |
% |
||||
| Operating Cash Flow |
$ |
242.2 |
$ |
358.2 |
(32 |
) |
% |
$ |
222.4 |
9 |
% |
||||
| Free Cash Flow |
$ |
130.5 |
$ |
227.8 |
(43 |
) |
% |
$ |
68.9 |
89 |
% |
||||
