ON Semiconductor Corp. posted a net loss of $58 million, or 34 cents per share on sales of $256 million in the second quarter, which included a $35 million, or 20 cent per share restructuring charge related to asset impairment and employee severance.
The Phoenix semiconductor supplier lost $31.8 million, or 19 cents per share on sales of $280.6 million in the year-ago second quarter, and $51 million, or 30 cents per share on sales of $269.5 million the first quarter of 2003.
The second quarter revenue decline resulted from weakness in the automotive and wireless sectors coupled with higher than expected price declines in all markets. On a mix-adjusted basis, second quarter average selling prices declined 4% sequentially.
On a positive note, ON reported gross margins improved to 28.6% from 27.6% the first quarter.
"Our cost reduction efforts enabled us to improve our gross margin and to offset the weakness in some of our end-markets," said Keith Jackson, president and chief executive, in a statement. "We have greatly improved our efficiencies through these efforts and we are working to increase our intellectual property and strengthen our new product portfolio as part of our efforts to drive higher margins and increase revenue."
ON is projecting flat revenue the third quarter, with gross margins slightly rising.