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Jul 03, 2020

ON Semiconductor Q2 2020 Earnings Report

Reported second quarter 2020 results with revenue of $1,213.5 million and non-GAAP EPS of $0.12.

Key Takeaways

ON Semiconductor reported second quarter 2020 revenue of $1,213.5 million, a decrease of approximately 10% compared to the second quarter of 2019. The company's GAAP diluted loss per share was $0.00, while non-GAAP diluted earnings per share was $0.12. Despite disruptions from the COVID-19 pandemic, ON Semiconductor is making progress towards its strategic initiatives, including manufacturing optimization and the ramp-up of 300mm manufacturing processes.

Revenue of $1,213.5 million

GAAP and non-GAAP gross margin of 30.8 percent

GAAP operating margin of 3.6 percent and non-GAAP operating margin of 7.4 percent

GAAP diluted loss per share of $0.00 and non-GAAP diluted earnings per share of $0.12

Total Revenue
$1.21B
Previous year: $1.35B
-9.9%
EPS
$0.12
Previous year: $0.42
-71.4%
Gross Margin
30.8%
Operating Margin
3.6%
Gross Profit
$374M
Previous year: $499M
-25.0%
Cash and Equivalents
$2.06B
Previous year: $885M
+132.8%
Free Cash Flow
$81.2M
Previous year: $69.1M
+17.5%
Total Assets
$9.53B
Previous year: $8.52B
+11.8%

ON Semiconductor

ON Semiconductor

Forward Guidance

The Company anticipates 2020 third quarter revenue to be approximately $1,200 million to $1,330 million. GAAP and Non GAAP gross margin for third quarter of 2020 is expected to be between 32.0 percent and 34.0 percent.

Positive Outlook

  • Revenue to be approximately $1,200 million to $1,330 million.
  • Gross margin expected to be between 32.0% and 34.0%.
  • Includes anticipated stock-based compensation expense of approximately $17 million to $19 million.
  • Net cash paid for income taxes is expected to be $17 million to $22 million.
  • Based on product booking trends, backlog levels, and estimated turns levels