PHOENIX -- On Semiconductor Corp. reported sales of $256.2 million in the second quarter of 2003, a decline of 5 percent from $269.5 million in the previous quarter and compared to $280.6 million in the like period a year ago.
The company reported a net loss of $58 million, or $0.34 per share that included $35 million, or minus $0.20 per share of restructuring and other charges.
The company reported a revised net loss of $51 million, or minus $0.30 per share, for the first quarter of 2003, and a deficit of $33.9 million, or minus $0.19 a share, a year ago.
The decline in second quarter revenues was primarily the result of weakness in the automotive and wireless sectors coupled with higher than expected price declines in all markets.
"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, ON Semiconductor's president and CEO, 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 revenues," he said.
"Based upon booking trends, backlog levels and estimated turns levels, we anticipate that total revenues will be roughly flat in the third quarter," Jackson said. "We have driven costs down faster than expected and reduced our break-even level, but we need price stability and stronger end-market growth to achieve profitability. While price declines have moderated, we do not currently expect sufficient end-market growth to enable the company to achieve positive earnings per share in the fourth quarter of 2003."