For the first quarter of 2015, highlights include:

• Total revenues of $870.8 million
• GAAP earnings per diluted share of $0.13, non-GAAP earnings per diluted share of $0.20
• GAAP and non-GAAP gross margin of 34.5 percent
• GAAP operating margin of 7.9 percent and non-GAAP operating margin of 11.5 percent
• Repurchased approximately 8.6 million shares for approximately $97 million

PHOENIX — (BUSINESS WIRE) — May 3, 2015 — ON Semiconductor Corporation (Nasdaq: ON), driving energy efficient innovation, today announced that total revenues in the first quarter of 2015 were $870.8 million, up approximately one percent compared to the fourth quarter of 2014. During the first quarter of 2015, the company reported GAAP net income of $55.1 million, or $0.13 per diluted share. The first quarter 2015 GAAP net income was negatively impacted by approximately $32.0 million of special items, details of which can be found in the attached schedules.

First quarter 2015 non-GAAP net income was $87.1 million, or $0.20 per diluted share, compared to $76.3 million, or $0.17 per diluted share, for the fourth quarter of 2014. A reconciliation of these non-GAAP financial measures (and other non-GAAP measures used elsewhere in this release) to the company's most directly comparable measures prepared in accordance with U.S. GAAP are set forth in the attached schedules and on our website at http://www.onsemi.com. Additional information on revenue by end market, region, distribution channel and business unit, and share count can be found on the " Investors" section of our website.

Total company GAAP and non-GAAP gross margin in the first quarter was 34.5 percent. For the first quarter of 2015, GAAP operating margin was 7.9 percent, and non-GAAP operating margin was 11.5 percent.

Adjusted EBITDA for the first quarter of 2015 was $155.9 million. Adjusted EBITDA for the fourth quarter of 2014 was $143.2 million. During the first quarter, the company repurchased approximately 8.6 million shares of common stock for approximately $97 million.

"We continue to make strong progress in our focused end-markets, as evident from our results for the first quarter and outlook for the second quarter," said Keith Jackson, president and CEO of ON Semiconductor. "Our order momentum is accelerating and visibility into near to mid-term outlook has improved significantly, driven by strong customer interest in our product offerings. Along with solid revenue growth, our margins continue to expand and we remain on track to deliver strong growth in earnings and free cash flow.

"Our stock repurchase program is off to a strong start with stock repurchase of approximately $120 million completed in the first four months of the program, which has a total authorized amount of $1 billion for a four-year period. We continue to believe that given our outlook for solid growth and margin expansion, our stock represents a compelling investment opportunity for our excess cash."

SECOND QUARTER 2015 OUTLOOK

"Based upon product booking trends, backlog levels, and estimated turns levels, we anticipate that total ON Semiconductor revenue will be approximately $876 million to $916 million in the second quarter of 2015," Jackson said. "Backlog levels for the second quarter of 2015 represent approximately 80 to 85 percent of our anticipated second quarter 2015 revenue. The outlook for the second quarter of 2015 includes stock-based compensation expense of approximately $13 million to $15 million."

The following table outlines ON Semiconductor's projected second quarter of 2015 GAAP and non-GAAP outlook.

ON SEMICONDUCTOR Q2 2015 BUSINESS OUTLOOK
				Total ON Semiconductor GAAP			Special Items ***			Total ON Semiconductor Non-GAAP****
Revenue				$876 to $916 million						$876 to $916 million
Gross Margin				34% to 36%						34% to 36%
Operating Expenses				$233 to $245 million			$35 to $37 million			$198 to $208 million
Net Interest Expense / Other Expenses				$7 to $9 million						$7 to $9 million
Convertible Notes, Non-cash Interest Expense*				$2 million			$2 million
Tax				$8 to $11 million			$3 to $4 million			$5 to $7 million
Diluted Share Count **				435 million						435 million

*				Convertible Notes, Non-cash Interest Expense is calculated pursuant to FASB's Accounting Standards Codification (“ASC”) Topic 470: Debt.
**				Diluted share count can vary for, among other things, the actual exercise of options or vesting of restricted stock units, the incremental dilutive shares from the company's convertible senior subordinated notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares.
***				Special items may include: amortization of intangible assets; amortization of acquisition-related intangibles; expensing of appraised inventory fair market value step-up; inventory valuation adjustments; purchased in-process research and development expenses; restructuring, asset impairments and other, net; goodwill impairment charges; gains and losses on debt prepayment; non-cash interest expense; income tax adjustments to approximate cash taxes; actuarial (gains) losses on pension plans and other pension benefits; and certain other special items, as necessary.
****				Regulation G and other provisions of the securities laws regulate the use of financial measures that are not prepared in accordance with GAAP. We believe these non-GAAP measures provide important supplemental information to investors. We use these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations that - when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide in our releases - provide a more complete understanding of factors and trends affecting our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures, even if they have similar names.

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