In the second quarter of 2015, total revenues for ON Semiconductor were $880.5 million, up approximately 1% from the first quarter of the year.
Despite the slight growth, ON Semiconductor did report a decrease in net income due to uncertainty in the industry. The Phoenix-based company reported net income of $50.7 million, or $0.12 per share, which compares with $94.1 million, or $0.21 per share on revenue of $756.6 million for the second quarter of 2014. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) for the second quarter were $163.5 million.
"Despite a tough macro-economic backdrop during the second quarter, we were able to deliver strong earnings performance driven by solid execution and sharp focus on managing costs," said Keith Jackson, president and CEO of ON Semiconductor. "The current macro-economic uncertainty has impacted demand and order trends. However, following a drop in orders towards the end of the second quarter, we have recently seen stabilization in order trends.”
He continued, "We believe that our strong product pipeline coupled with our manufacturing and operational prowess should enable us to grow at a faster pace than the semiconductor industry. Despite volatility in the macro-economic environment, customer interest in our product offerings for the automotive, industrial, and smartphone markets continues to increase, and our design win pipeline and breadth of customer engagements continues to grow."
Looking forward to the third quarter of the year, Jackson looks for the company to achieve further growth.
"Based on product booking trends, backlog levels, and estimated turns levels, we anticipate that total ON Semiconductor revenue will be approximately $890 to $930 million in the third quarter of 2015," he said. "Backlog levels for the third quarter of 2015 represent approximately 80 to 85 percent of our anticipated third quarter 2015 revenue. The outlook for the third quarter of 2015 includes stock-based compensation expense of approximately $13 million to $15 million."
View the ON Semi press release.
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