ON goes back into the black

ON Semiconductor Corp has revealed that total revenues in the first quarter of 2005 were $302.4 million, a decline of approximately 1% from the fourth quarter of 2004.

ON Semiconductor Corp has revealed that total revenues in the first quarter of 2005 were $302.4 million, a decline of approximately 1% from the fourth quarter of 2004.

During the first quarter of 2005, the company reported net income of $14.8 million, or $0.04 per share, which included restructuring, asset impairments and other charges of $1.1 million.

During the fourth quarter of 2004, the company reported a net loss of $88.3 million, or $0.36 per share, which included a loss on debt prepayment of $96.3 million and restructuring, asset impairments and other charges of $5.6 million.

On a mix-adjusted basis, average selling prices in the first quarter of 2005 were down approximately 2% from the fourth quarter of 2004.

The company's gross margin in the first quarter was 31.8%, a decrease of approximately 30 basis points as compared with the fourth quarter of 2004.

EBITDA for the first quarter of 2005 was $55.4 million and included $1.1 million in restructuring, asset impairments and other charges.

EBITDA for the fourth quarter of 2004 was a $39.7 million deficit and included the $96.3 million loss on debt prepayment and restructuring, asset impairments and other charges of $5.6 million.

"In the first quarter of 2005, we continued our focus of maintaining gross margin levels and driving profitability", said Keith Jackson, ON Semiconductor President and CEO.

"We believe our operational execution throughout this cycle has been and continues to be superior to many of our peers".

"During the first quarter, we continued to work down inventory levels internally and in the distribution network, while maintaining gross margin levels above 31%".

"Based on booking trends, backlog levels and estimated turns levels, we anticipate that total revenues will be approximately flat in the second quarter of 2005, plus or minus 2%", Jackson said.

"Backlog levels at the beginning of the second quarter were down slightly from backlog levels at the beginning of the first quarter of 2005, and represented approximately 80% of our anticipated second quarter revenues".

"We believe we are in a high turns environment similar to that of the first quarter".

"We expect that average selling prices will be down approximately 1 to 2% for the second quarter of 2005".

"We also expect cost reductions to offset the decline in average selling prices and that gross margins will be flat to slightly up in the second quarter of 2005".

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