ON Semiconductor Corporation announced on Feb 2, 2018 USA time that total revenues in the fourth quarter of 2017 were $1,377.5 million, up approximately nine percent compared to the same quarter last year. Fourth quarter revenue was down approximately one percent as compared to revenue in the third quarter of 2017.
“We once again delivered solid results, driven by strong demand for our products and by outstanding operating performance. With a broad portfolio of products for the industrial and automotive end-markets, ON Semiconductor is well positioned to benefit from the fastest growing end-markets in the semiconductor industry,” said Keith Jackson, ON Semiconductor president and CEO. “We believe that we are in the early stages of realizing benefits of our investments in automotive and industrial end-markets. Increased adoption of ADAS, electric vehicles, machine vision and robotics should drive further acceleration in our revenue and margins. Customers are increasingly relying on us as a key provider of enabling technologies for newly emerging and disruptive applications in automotive and industrial end-markets.
“Demand for our products remains strong and our design win pipeline continues to expand. Our customers are upbeat about the near to mid-term demand outlook for their businesses.Amid a strong demand environment, industry wide supply-side dynamics remain healthy.”
Fourth Quarter Results (GAAP)
| (in millions, except per share data) | 4Q 2017 | 4Q 2016 | Year-Over-
Year Change |
3Q 2017 | Sequential
Change |
||
| Revenues | $1,377.5 | $1,261.0 | 9 | % | $1,390.9 | (1) | % |
| Gross Profit | $514.2 | $384.5 | 34 | % | $524.2 | (2) | % |
| Operating Income | $166.0 | $55.7 | 198 | % | $177.3 | (6) | % |
| Net Income Attributable to
ON Semiconductor Corporation |
$529.9 | $110.9 | 378 | % | $108.7 | 387 | % |
| Diluted Earnings Per Share | $1.22 | $0.26 | 369 | % | $0.25 | 388 | % |
| Diluted Share Count | 433.3 | 426.9 | 1 | % | 427.5 | 1 | % |
Fourth Quarter Results (Non-GAAP)
| (in millions, except per share data)
|
4Q 2017 | 4Q 2016 | Year-Over- Year Change |
3Q 2017 | Sequential
Change |
||
| Revenues | $1,377.5 | $1,261.0 | 9 | % | $1,390.9 | (1) | % |
| Gross Profit | $516.8 | $443.3 | 17 | % | $526.7 | (2) | % |
| Operating Income | $211.5 | $162.2 | 30 | % | $231.0 | (8) | % |
| Net Income Attributable to
ON Semiconductor Corporation |
$167.3 | $123.0 | 36 | % | $189.4 | (12) | % |
| Diluted Earnings Per Share | $0.39 | $0.29 | 34 | % | $0.44 | (11) | % |
| Diluted Share Count | 429.9 | 426.9 | 1 | % | 427.5 | 1 | % |
Fourth Quarter Key Cash Flow Items
| (in millions) | 4Q 2017 | 4Q 2016 | Year-Over- Year Change |
3Q 2017 | Sequential
Change |
||
| Cash Taxes | $18.9 | $8.2 | 130 | % | $13.4 | 41 | % |
| Operating Cash Flow | $224.3 | $229.4 | (2) | % | $328.2 | (32) | % |
| Free Cash Flow | $48.6 | $179.5 | (73) | % | $238.1 | (80) | % |
FIRST QUARTER 2018 OUTLOOK
Based on product booking trends, backlog levels and estimated turns levels, the Company anticipates that total revenue in the first quarter of 2018 will be approximately $1,340 to $1,390 million. The outlook for the first quarter of 2018 includes anticipated stock-based compensation expense of approximately $18 million to $20million. Net cash paid for income taxes is expected to be $18 million to $22 million.
The following table outlines ON Semiconductor’s projected first quarter of 2018 GAAP and non-GAAP outlook.
| Total ON Semiconductor
GAAP |
Special
Items *** |
Total ON Semiconductor
Non-GAAP**** |
|
| Revenue | $1,340 to $1,390 million | $1,340 to $1,390 million
|
|
| Gross Margin | 36.4% to 38.4% | 36.4% to 38.4% | |
| Operating Expenses | $318 to $336 million | $28 to $32 million | $290 to $304 million |
| Other Income and Expense (including interest expense), net | $33 to $36 million | $8 to $9 million* | $25 to $27 million |
| Diluted Share Count ** | 445-447 million | 432 million |
