- Revenue of $1,347.7 million
- GAAP gross margin of 37.0 percent and non-GAAP gross margin of 37.1 percent
- GAAP operating margin of 11.7 percent and non-GAAP operating margin of 15.7 percent
- GAAP diluted earnings per share of $0.24 and non-GAAP diluted earnings per share of $0.42
- Closed acquisition of Quantenna Communications and entered into an agreement to acquire a 300mm fab located at East Fishkill, NY from GLOBALFOUNDRIES
PHOENIX — (BUSINESS WIRE) — August 4, 2019 — ON Semiconductor Corporation (Nasdaq: ON) today announced that 2019 second quarter revenue was $1,347.7 million, down approximately 7 percent compared to 2018 second quarter revenue. 2019 second quarter revenue was down approximately 3 percent as compared to 2019 first quarter revenue.
During the second quarter, ON Semiconductor announced that it has signed a definitive agreement to acquire, in a phased transaction, a 300mm fab located at East Fishkill, NY and related assets from GLOBALFOUNDRIES. ON Semiconductor also announced the close of its previously announced acquisition of Quantenna Communications, a leader in high performance Wi-Fi semiconductors.
"Business conditions continue to be soft, and we expect to see sub-seasonal demand trends in the near-term, as geopolitical factors will likely continue to weigh on demand. Despite near-term weakness in demand, key secular trends driving our business remain intact,” said Keith Jackson, President and CEO of ON Semiconductor. “Against a backdrop of soft demand and limited visibility, we continue to focus on execution to mitigate the impact of current softness in demand. We remain confident in our strategy of focusing on secular megatrends in automotive, industrial, and cloud-power end-markets, and we are prudently investing to further strengthen our position in these markets."
Second Quarter Results (GAAP) |
|||||||
(in millions, except per share data) |
2Q 2019 |
2Q 2018 |
Year-Over- Year Change |
1Q 2019 |
Sequential Change |
||
Revenue |
$1,347.7 |
$1,455.9 |
(7 |
)% |
$1,386.6 |
(3 |
)% |
Gross Profit |
$499.0 |
$555.0 |
(10 |
)% |
$513.7 |
(3 |
)% |
Operating Income |
$158.3 |
$197.2 |
(20 |
)% |
$179.4 |
(12 |
)% |
Net Income Attributable to ON Semiconductor Corporation |
$101.8 |
$155.3 |
(34 |
)% |
$114.1 |
(11 |
)% |
Diluted Earnings Per Share |
$0.24 |
$0.35 |
(31 |
)% |
$0.27 |
(11 |
)% |
Diluted Share Count |
417.7 |
444.3 |
(6 |
)% |
417.7 |
— |
% |
Second Quarter Results (Non-GAAP) |
|||||||
(in millions, except per share data)
|
2Q 2019 |
2Q 2018 |
Year-Over-
|
1Q 2019 |
Sequential Change |
||
Revenue |
$1,347.7 |
$1,455.9 |
(7 |
)% |
$1,386.6 |
(3 |
)% |
| Gross Profit |
$499.6 |
$555.2 |
(10 |
)% |
$513.7 |
(3 |
)% |
| Operating Income |
$211.4 |
$237.6 |
(11 |
)% |
$215.2 |
(2 |
)% |
| Net Income Attributable to ON Semiconductor Corporation |
$175.0 |
$199.7 |
(12 |
)% |
$177.1 |
(1 |
)% |
| Diluted Earnings Per Share |
$0.42 |
$0.46 |
(9 |
)% |
$0.43 |
(2 |
)% |
| Diluted Share Count |
413.8 |
431.6 |
(4 |
)% |
413.8 |
— |
% |
| Second Quarter Key Cash Flow Items | |||||||||
| (in millions) |
2Q 2019 |
2Q 2018 |
Year-Over-
|
1Q 2019 |
Sequential Change |
||||
| Cash Taxes, net of indemnification |
$12.9 |
$13.3 |
(3 |
)% |
$15.2 |
(15 |
)% |
||
| Operating Cash Flow |
$222.4 |
$268.5 |
(17 |
)% |
$138.4 |
61 |
% |
||
| Free Cash Flow |
$68.9 |
|
$115.6 |
(40 |
)% |
($18.6 |
) |
N/A |
|
