Fourth quarter guidance is more optimistic

ON Semiconductor has upgraded its estimates for fourth-quarter 2003 revenues, originally set to be up by 2 to 3% sequentially.

ON Semiconductor has upgraded its estimates for fourth-quarter 2003 revenues, originally set to be up by 2 to 3% sequentially.

"We now expect fourth quarter 2003 revenues will grow sequentially by approximately 5% over third quarter 2003 revenues despite an estimated decline in average selling prices of approximately 2.5 to 3.0% in the fourth quarter of 2003", says Keith Jackson, ON Semiconductor President and CEO.

"Consistent with our previous guidance, we expect fourth quarter gross margins to remain approximately flat as compared to the third quarter gross margins of 28%".

The company expects that average selling prices will be up for the first quarter of 2004.

As a result of the stronger pricing environment and broad-based strength in customer orders, the company expects revenues to grow by 5 to 6% sequentially in the first quarter of 2004 and expects that gross margins will increase to between 29 and 30%.

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