ON Semi plans more job cuts
8/2/2012 5:23 PM EDT
Q2 sales, Q3 guidance short of expectations
ON Semi reported second
quarter sales of $744.8 million, roughly flat with the previous quarter
but down 18 percent compared with the second quarter of 2011. The
company reported a net income in accordance with generally accepted
accounting principles (GAAP) of $6.9 million, or 2 cents per diluted
share, down from $57.5 million or 12 cents per diluted share in the
previous quarter and $41 million or 9 cents per diluted share in the
second quarter of 2011.
Second quarter GAAP net income was weighed down by $58.1 million in restructuring and other charges, ON Semi said.
a non-GAAP basis, excluding charges, ON Semi reported a second quarter
net income of $65 million, or 14 cents per diluted share, up 13 percent
compared to the previous quarter but down 43 percent compared with the
Second quarter sales came up short of
consensus analysts' expectations of about $765 million, according to
Yahoo Finance. Non-GAAP earnings per share was in line with consensus
analysts expectations, according to Yahoo Finance.
that ON Semi's second quarter sales fell within the lower end of the
company's target for the quarter. But he said the company experienced a
slowdown in orders in June. Due to global macroeconomic uncertainty and
conservative order trends from customer through July, On Semi expects
third quarter sales to be roughly flat with the second quarter, Jackson
Jackson said he expects ON
Semi's front-end capacity utilization to decline from about 80 percent
in the second quarter to 70 to 75 percent in the third quarter. On the
back end, Jackson said he expects capacity utilization to fall from 90
percent to 80 to 85 percent.
Officially, ON Semi said it
expects third quarter sales to be between $725 million and $765 million,
with gross margin between 33.5 and 34.5 percent, down from 34.7 percent
in the second quarter. The company said it expects average selling
prices for its parts to decline by 1 to 2 percent in the third quarter.
Semi's third quarter revenue target came up well short of consensus
analysts' expectations of about $800 million, according to Yahoo
"Unfortunately, due to the global macroeconomic
environment, we are not expecting to see normal seasonal growth in the
second half of 2012," Colvin said.