For the fourth quarter of 2018, highlights include:
- Revenue of $1,503.1 million
- Gross margin of 37.9 percent
- GAAP operating margin of 14.8 percent and non-GAAP operating margin of 16.8 percent
- Operating cash flow of $421.0 million and free cash flow of $289.0 million
- GAAP earnings per share of $0.39 and non-GAAP earnings per share of $0.53
For 2018, highlights include:
- Revenue of $5,878.3 million
- Gross margin of 38.1 percent
- GAAP operating margin of 14.4 percent and non-GAAP operating margin of 16.7 percent
- Operating cash flow of $1,274.2 million and free cash flow of $759.4 million
- GAAP earnings per share of $1.44 and non-GAAP earnings per share of $1.96
ON Semiconductor Corporation announced that total revenue in the fourth quarter of 2018 was $1,503.1 million, up approximately nine percent compared to the same quarter last year. Fourth quarter revenue was down approximately three percent as compared to revenue in the third quarter of 2018.
“We once again delivered strong performance in the fourth quarter despite slowdown in macroeconomic conditions. Key secular trends driving growth in our content in automotive, industrial, and cloud-power end-markets remain intact, and we remain upbeat about our medium to long term outlook. Our design-win pipeline in our strategic markets is growing at a strong pace, our customer engagements are strengthening, and our competitive position is improving significantly,” said Keith Jackson, president and CEO of ON Semiconductor. “Despite confidence in our medium to long term outlook, we remain cognizant of slowing macroeconomic conditions, and we are managing our business prudently to adjust to changing demand environment.“
“Along with strong revenue performance, we intend to continue to deliver solid margin and free cash flow performance through strong execution on operational front.”
FIRST QUARTER 2019 OUTLOOK
Based on product booking trends, backlog levels, and estimated turns levels, the Company anticipates that total revenue in first quarter of 2019 will be approximately $1,365 to $1,415 million. First quarter 2019 gross margin outlook includes negative impact of 50 basis points from manufacturing services provided by ON Semiconductor Aizu Co., Ltd.
The outlook for the first quarter of 2019 includes anticipated stock-based compensation expense of approximately $19 million to $21 million. Net cash paid for income taxes is expected to be $16 million to $20 million.
The following table outlines ON Semiconductor’s projected first quarter of 2019 GAAP and non-GAAP outlook.
ON Semiconductor will host a conference call for the financial community at 9 a.m. Eastern Time (EST) on Feb. 4, 2019 to discuss this announcement and ON Semiconductor’s results for the fourth quarter of 2018 and year then ended. The Company will also provide a real-time audio webcast of the teleconference on the Investor Relations page of its website at http://www.onsemi.com.
Investors and interested parties can also access the conference call through a telephone call by dialing (877) 356-3762 (U.S./Canada) or (262) 558-6155 (International). In order to join this conference call, you will be required to provide the Conference ID Number, which is 9592878.