ON Semiconductor Corp. reported a net loss of $31 million, or 19 cents per share, on revenue of $267 million the first quarter, compared to a net loss of $50 million, or 30 cents per share, on sales of $269.1 million in the year-ago first quarter. Revenue rose slightly from $265.7 million the fourth quarter of 2002, when ON lost $39.6 million, or 24 cents per share.
First quarter 2003 results included a $3.5 million or 2 cents per share loss on debt prepayment stemming from the issuance of $200 million in first lien notes to pay down bank debt.
The Phoenix semiconductor supplier noted that average selling prices in the first quarter of 2003 declined 5% from the previous quarter due to contractual price negotiations with customers. The first-quarter price decline was slightly higher than previously anticipated.
"Despite numerous market challenges in the first quarter, I'm happy to report that we were still able to grow our revenues slightly compared to the fourth quarter, " said Keith Jackson, ON's president and chief executive, in a statement.
ON expects second-quarter revenue to be in line with the first quarter, with gross margins and operating margins increasing slightly as cost reduction measures are realized.