Moving into a profitable mode for the first time in nearly four years, On Semiconductor Corp. on Wednesday (Oct. 27) said revenues in the third quarter of 2004 were $318.4 million, a decrease of 5 percent from the second quarter of 2004.
During the third quarter of 2004, the company reported net income of $15.7 million, or 4 cents per share, which included a loss on debt prepayment of $3.0 million, or 1 cent per share. During the second quarter of 2004, the company reported a net loss of $3.5 million, or 2 cents per share.
On Semi (Phoenix) lost $18.6 million, or minus 10 cents a share, on sales of $264.8 million in the like period a year ago.
"We accomplished a significant milestone this quarter by achieving profitability for the first time since the fourth quarter of 2000," said Keith Jackson, On Semi's president and CEO, in a statement.
"The actions taken during the year on the operational and financial front have enabled us to reach profitability at a revenue level significantly lower than in the fourth quarter of 2000," he said. "Operationally, we are executing better throughout the cycle and have improved both our price management and product portfolio. Financially, we have strengthened our balance sheet and have reduced our interest expense."
The news was not all upbeat, however. Based on downward booking and backlog trends and estimated turns levels, On anticipates fourth-quarter revenues will be flat to down 4 percent sequentially, Jackson said.
"Backlog levels at the beginning of the fourth quarter of 2004 were down from backlog levels at the beginning of the third quarter of 2004 and represented greater than 90 percent of our anticipated fourth quarter revenues," he said. "We expect that average selling prices will be down slightly in the fourth quarter of 2004 and while gross margin will decrease to approximately 31 percent, we expect to remain profitable."