ONNN - Sector: Technology --- Industry: Semiconductors

[setravis]

AP
ON Semiconductor 1Q profit beats Wall Street expectations
Wednesday May 7, 9:26 am ET 
ON Semiconductor 1st-quarter profit falls but beats analyst expectations; shares up premarket


PHOENIX (AP) -- ON Semiconductor Corp. said late Tuesday its first-quarter profit fell 61.5 percent on higher costs.
However, results beat Wall Street estimates, and shares rose $1.26, or 16.1 percent, to $9.07 in premarket trading Wednesday.


Net income fell to $20.8 million, or 7 cents per share, from $54 million, or 18 cents per share, in the 2007 first quarter.

Excluding one-time costs and gains, the company earned $65.4 million, or 21 cents per share.

The latest quarter included an expense of $17.7 million for in-process research and development. Cost of revenue jumped to $275.3 million from $255.6 million.

Sales rose to $421.9 million from $374.2 million.

Analysts polled by Thomson Financial expected profit of 14 cents per share on sales of $386.2 million. Analyst estimates typically exclude one-time items.

Excluding the impact of the acquisition of competitor AMIS Holdings Inc., ON had stand alone sales of approximately $396.4 million, a decrease of approximately 3 percent from the 2007 fourth quarter.

[setravis]

AP
Sector Snap: Semiconductors waver as ON soars on 2Q outlook
Wednesday May 7, 1:32 pm ET 
Chip stocks waver as ON Semiconductor jumps on upbeat 2nd-quarter outlook


NEW YORK (AP) -- The chip sector wavered Wednesday, pulled between ON Semiconductor Corp.'s upbeat second-quarter outlook and a downturn in the wider technology market.
The chip sector, as measured by the Philadelphia Semiconductor Index, rose 1.29 point or 0.3 percent to 404.38 in midday trading before falling 0.78 points or 0.2 percent to 402.17.


ON shares soared $1.50, or 19.2 percent, to $9.30 in midday trading after it said it expects second-quarter sales of $545 million to $560 million. Its estimate is way ahead of Wall Street's forecast -- analysts polled by Thomson Financial expect sales of just $400.5 million.

ON also comfortably beat analysts' profit expectations for the first quarter.

Robert W. Baird & Co. analyst Tristan Gerra said the Phoenix-based company showed strong execution given the weak economy.

The first-quarter results and second-quarter outlook were particularly favorable in light of recently reported results from ON competitors, Gerra said.

The company's first-quarter acquisition of competitor AMIS Holdings Inc. will provide cost efficiencies, he added.

Network equipment maker Cisco Systems' third-quarter results brought encouraging news for its Mountain View, Calif.-based chip supplier Cavium Networks Inc., according to Oppenheimer & Co. analyst Allan Mishan.

Mishan noted that Cisco's U.S. demand remains sluggish, but its management did not report a slowdown elsewhere. Cavium has stronger Cisco revenue than other chip makers such as IDT and NetLogic, he said.

Cavium shares rose 32 cents to $20.33 in midday trading.

Deutsche Bank analyst Brian Modoff maintained his "Hold" rating on Greensboro, N.C.-based RFMicro Devices Inc. after the company announced it would exit the receiver chip business.

"While this could help margins, it also cuts growth," Modoff warned.

RF Micro Devices shares fell 7 cents, or 2 percent, to $3.38 in midday trading. They have traded in the past year between $2.52 and $7.46.

[setravis]

This stock was added to my Watch List 03/15/2003
@ $1.26 Since then it has made a gain of 618.25%
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TradingMarkets.com
5 Top PowerRatings Stocks for Traders: OPTM, ONNN, WIRE, VIP, TTEK
Wednesday June 4, 12:36 pm ET
By David Penn

A pause in the selling early on Wednesday gives traders a chance to survey the terrain for strong stocks that have been made less expensive due to the markets' recent turn to the downside.
The five stocks in today's report have Short Term PowerRatings ranging from our highest rating of 10 to 8. Our research into short term stock price behavior from 1995 to 2007 indicates that stocks with Short Term PowerRatings of 8 have outperformed the average stock by a margin of more than 8 to 1 after five days. Those stocks with our highest Short Term PowerRating of 10 have performed even better, besting the average stock by a margin of nearly 17 to 1 over the same time period.
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On Semiconductor Corporation (NasdaqGS:ONNN) Short Term PowerRating 9. RSI(2): 10.17

For virtually all of April and the first half of May, shares of On Semiconductor featured low Short Term PowerRatings of 3 or less. These low ratings developed as the stock first moved higher to challenge the 200-day moving average, and continued as ONNN broke out above that level.

Since peaking out in the middle of May, ONNN has pulled back and begun moving sideways, which has helped the stock "climb down" from its extreme overbought levels of a few weeks ago.


52wk Range: 4.86 - 13.15
Volume: 8,793,222
Avg Vol (3m): 11,025,800
Market Cap: 3.59B
P/E (ttm): 13.13
EPS (ttm): 0.69
Div & Yield: N/A (N/A)

Technicals
Most Actives

Last Price Quote is:
-3.29%below 13-day MA
4.56%above 50-day MA
RS Rating: 96 

Fundamentals
Key Data:
Market Cap (M): $3,811.89 
P/E Ratio: 14.19 
PEG Ratio: 0.672839 
Next Earnings: 08/05/2008
Last Analyst Rating: Buy


Below are the 6 month, 5 year and All Data Charts.......

[setravis]

Target $14. Stifel Nicolaus initiates ONNN with a Buy and price target of $14 and adding it to their Select List saying over the last few years, management has been working diligently to transform the company from its staid roots as the Standard Products Group of Motorola into a burgeoning diversified analog company. The firm believes the ongoing transformation of ONNN should result in both better financial performance and multiple expansion. They believe the key to the transformation process has been the restructuring of its balance sheet, the expansion of its manufacturing and engineering capability, and the broadening of its product portfolio internally and through prudent acquisitions.



Technicals
Close Above the 13-day MA
Most Actives

Last Price Quote is:
2.09%above 13-day MA
8.69%above 50-day MA
RS Rating: 97 

Fundamentals
Coverage Initiated: Buy

Key Data:
Market Cap (M): $3,589.77 
P/E Ratio: 13.36 
PEG Ratio: 0.672839 
Next Earnings: 08/05/2008
Last Analyst Rating: Buy

[setravis]

PHOENIX, Jun 19, 2008 (BUSINESS WIRE) -- ON Semiconductor (ONNN, Trade), a global leader in power management and circuit protection semiconductor solutions, today announced the expansion of its high-performance off-chip ESD protection portfolio with the introduction of two best-in-class devices - the ESD7L5.0D and the NUP4212. These new products have been designed using ON Semiconductor's propriety integrated ESD protection platform, which enhances clamping performance while maintaining low capacitance and small die size.

The ESD7L5.0D protects two high-speed data lines at 0.5 pico farad (pF) capacitance per line in the tiny 1.2 mm x 1.2 mm x 0.5 mm SOT-723 package. Integrating ON Semiconductor's low-capacitance technology into a 3-pin package provides the designer with a solution to protect the D+ and D- lines of a USB2.0 port with a single device. The ESD7L5.0D can also be connected cathode to cathode to protect a single bi-directional line at 0.25 pF, ideal for protecting high-frequency RF antenna lines.

The NUP4212 protects four high-speed data lines at 0.7 pF per line and 2 Vcc power lines in the compact 1.6 mm x 1.6 mm x 0.5 mm UDFN-6 package. This enables the designer to protect the D+ and D- lines plus the Vcc line on two USB ports with a single integrated solution.

Both new devices share key features which distinguish the company's proprietary technology from competitive offerings. The ESD7L5.0D and NUP4212 are capable of clamping an input ESD waveform of 15 kilovolt (kV) to less than 7 volts (V) in a matter of nanoseconds, ensuring the highest levels of protection for today's ESD sensitive integrated circuits (IC). Other low-capacitance off-chip ESD protection technologies, such as polymer and ceramic-based varistors, offer low capacitance, but their ESD clamping voltage is significantly higher than the ON Semiconductor solution. In addition, the ON Semiconductor silicon devices are free from wearout mechanisms that affect the reliability and performance of passive technologies after multiple surge events such as ESD.

"ON Semiconductor is continuing to expand its leadership in high-performance ESD protection solutions with the introduction of ultra-low-capacitance products targeting high-speed data applications," said Mamoon Rashid, ON Semiconductor vice president and general manager of the company's Discrete Products Division. "Next-generation portable applications require improved performance and increased design flexibility at higher and higher data rates. ON Semiconductor continues to respond to this trend by introducing a complete family of low-capacitance ESD protection solutions."

The first product introduced on this technology platform, the ESD9L5.0S, was awarded Electronic Products magazine's 2007 "Product of the Year" award for a significant advance in technology, its application and innovation in design.

The ESD7L5.0DT5G is available in a SOT-723 package and is priced at $0.20 USD per unit in 8,000-unit quantities. The NUP4212 is available in a UDFN-6 package and is priced at $0.608 USD per unit in 3,000-unit quantities.

For additional technical information, visit the ON Semiconductor Circuit Protection website http://www.onsemi.com/circuitprotection or contact Lon Robinson at [email protected] or Eric Dominguez at [email protected].

About ON Semiconductor

With its global logistics network and strong product portfolio, ON Semiconductor (ONNN, Trade) is a preferred supplier of efficient power solutions to customers in the power supply, automotive, communication, computer, consumer, medical, industrial, mobile phone, and military/aerospace markets. The company's broad portfolio includes power, analog, DSP, mixed-signal, advance logic, clock management and standard component devices. Global corporate headquarters are located in Phoenix, Arizona. The company operates a network of manufacturing facilities, sales offices and design centers in key markets throughout North America, Europe, and the Asia Pacific regions. For more information, visit http://www.onsemi.com.

ON Semiconductor and the ON Semiconductor logo are registered trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the company references its Web site in this news release, such information on the Web site is not to be incorporated herein.

SOURCE: ON Semiconductor


ON Semiconductor 
Emily Puckett, 602-244-5670 (Media Relations) 
[email protected] 
Ken Rizvi, 602-244-3437 (Investor Relations) 
[email protected] 

Copyright Business Wire 2008

[setravis]

PHOENIX, & SANTA CLARA, Calif., Jul 17, 2008 (BUSINESS WIRE) -- ON Semiconductor Corporation (ONNN, Trade) and Catalyst Semiconductor, Inc. (CATS, Trade) today announced the signing of a definitive merger agreement providing for the acquisition of Catalyst Semiconductor by ON Semiconductor in an all-stock transaction in which Catalyst shareholders will receive 0.706 shares of ON Semiconductor common stock for each share of Catalyst common stock they own. This represents an equity value of approximately $115 million and an enterprise value of approximately $85 million.

"The acquisition of Catalyst Semiconductor will add to our high gross margin analog and mixed-signal product offerings for the digital consumer and wireless end-markets," said Keith Jackson, ON Semiconductor president and CEO. "Catalyst Semiconductor's analog and mixed-signal business represented more than $11 million in sales as of their April 2008 fiscal year end - a business that grew more than 90 percent versus the prior year. Catalyst Semiconductor's EEPROM technology will strengthen our custom application-specific circuits (ASIC) and power products capabilities expanding our ability to more comprehensively address our customers' needs. With the combination of ON Semiconductor's global footprint, effective channels of distribution, and top-tier customer relationships, we expect to be able to support a broader and deeper penetration of Catalyst's overall product portfolio. This should enable us to accelerate their revenue growth and increase market share. We also believe additional revenue from Catalyst Semiconductor's strong portfolio offering will benefit from ON Semiconductor's manufacturing capabilities. We look forward to welcoming Gelu Voicu, Catalyst Semiconductor's CEO, as well as the talented Catalyst employee base to ON Semiconductor."

"This transaction represents a compelling opportunity for Catalyst employees, customers and shareholders," stated Gelu Voicu, CEO of Catalyst Semiconductor. "To compete successfully in today's global marketplace, size and scale are very important. We are pleased to become part of a leading global company in the semiconductor sector. ON Semiconductor's world-class operational capabilities and supply chain will enable Catalyst Semiconductor's products to better penetrate the automotive, consumer, and industrial end-markets utilizing ON Semiconductor's global customer and channel footprint."

Transaction Details

Under the terms of the agreement, which has been approved by both boards of directors, the fixed exchange ratio will be 0.706 shares of ON Semiconductor common stock for each share of Catalyst Semiconductor common stock. Based on the closing stock price of ON Semiconductor on July 16, 2008, this represents a value to Catalyst Semiconductor shareholders of approximately $6.24 per share. Upon completion of the transaction, ON Semiconductor will issue approximately 13 million shares of common stock on a fully diluted basis to complete the transaction or approximately 3 percent of ON Semiconductor's fully diluted shares outstanding.

The transaction is subject to the approval of shareholders of Catalyst Semiconductor as well as customary closing conditions and regulatory approvals. The companies expect the transaction to close in the fourth quarter of 2008. Upon closing, ON Semiconductor may record a one-time charge for purchased in-process research and development expenses and other deal related costs. The amount of that charge, if any, has not yet been determined.

"This acquisition is directly aligned with both our strategic and financial goals," said Donald Colvin, ON Semiconductor executive vice president and CFO. "Net of cash and short term investments of approximately $30 million at the end of April 2008, the transaction value represents approximately 1.1 times trailing twelve month sales. We also believe ON Semiconductor's operational strengths will significantly benefit the revenue and margin potential of Catalyst Semiconductor. Excluding the impact of amortization expense, write-up of inventory to fair market value, one-time and other deal related charges discussed above, we expect the acquisition will have minimal impact to earnings per share in the first year post the transaction close and should be accretive to our earnings per share thereafter. ON Semiconductor's business and the integration of AMIS Holdings, Inc. has proceeded as anticipated and we are comfortable with the guidance and current level of revenue and earnings expectations provided on our May 5, 2008 conference call. We intend to provide further details on the acquisition and our second quarter 2008 results on our regularly scheduled quarterly earnings conference call on Aug. 6, 2008."

Shares of the combined company will trade on the NASDAQ Global Exchange under the symbol "ONNN." JP Morgan acted as exclusive financial advisor and DLA Piper US LLP acted as legal counsel to ON Semiconductor. Houlihan Lokey acted as exclusive financial advisor and O'Melveny & Myers LLP acted as legal counsel to Catalyst Semiconductor.

Teleconference and Webcast Information

ON Semiconductor will host a conference call for the financial community at 8:00 a.m. Eastern Time (ET) on Aug. 6, 2008 to discuss this announcement and ON Semiconductor's results for the second quarter of 2008. The company will also provide a real-time audio broadcast of the teleconference on the Investor Relations page of its website at http://www.onsemi.com. The webcast replay will be available at this site approximately one hour following the live broadcast and will continue to be available for approximately 30 days following the conference call. Investors and interested parties can also access the conference call through a telephone call by dialing (888) 546-9664 (U.S./Canada) or 706-679-4331 (International). In order to join this conference call, you will be required to provide the Conference ID Number - which is 56464044. Approximately one hour following the live broadcast, the company will provide a dial-in replay that will continue to be available through August 13, 2008. To listen to the teleconference replay, call 800-642-1687 (U.S./Canada) or 706-645-9291 (International). You will be required to provide the Conference ID Number - which is 56464044.

About ON Semiconductor

With its global logistics network and strong product portfolio, ON Semiconductor (ONNN, Trade) is a preferred supplier of high performance energy efficient silicon solutions to customers in the power supply, automotive, communication, computer, consumer, medical, industrial, mobile phone, and military/aerospace markets. The company's broad portfolio includes power, signal management, analog, DSP, advance logic, clock management and standard component devices. Global corporate headquarters are located in Phoenix, Arizona. The company operates a network of manufacturing facilities, sales offices and design centers in key markets throughout North America, Europe, and the Asia Pacific regions. For more information, visit http://www.onsemi.com.

About Catalyst Semiconductor

Headquartered in Santa Clara, California, Catalyst Semiconductor designs and markets analog, mixed-signal and non-volatile memory products, including Digitally Programmable Potentiometers (DPP(TM)), white and color LED drivers, DC/DC converters, LDO regulators, voltage supervisors, bus expanders, serial and parallel EEPROMs, Flash and NVRAM. Many of Catalyst's products incorporate the Company's Quantum Charge Programmable(TM) technology, to deliver Adaptive Analog(TM) products, which offer a new level of customer flexibility, lower power and smaller die size. Catalyst products are used in telecommunications, computer, automotive, industrial and consumer markets. Typical applications include LCD displays, automotive lighting, optical networks, printers, modems, wireless LANs, network cards, DIMM modules, cellular telephones, navigation systems, set-top boxes and Internet routers.

This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements related to the benefits of the proposed transaction between ON Semiconductor Corporation ("ON") and Catalyst Semiconductor, Inc. ("Catalyst Semiconductor") and the future financial performance of ON. These forward-looking statements are based on information available to ON and Catalyst Semiconductor as of the date of this release and current expectations, forecasts and assumptions and involve a number of risks and uncertainties that could cause actual results to differ materially from those anticipated by these forward-looking statements. Such risks and uncertainties include a variety of factors, some of which are beyond ON's or Catalyst Semiconductor's control. In particular, such risks and uncertainties include difficulties encountered in integrating merged businesses; the risk that the transaction does not close, including the risk that the requisite stockholder and regulatory approvals may not be obtained; the variable demand and the aggressive pricing environment for semiconductor products; dependence on each company's ability to successfully manufacture in increasing volumes on a cost-effective basis and with acceptable quality for its current products; the adverse impact of competitive product announcements; revenues and operating performance; changes in overall economic conditions; the cyclical nature of the semiconductor industry; changes in demand for our products; changes in inventories at customers and distributors; technological and product development risks; availability of raw materials; competitors' actions; pricing and gross margin pressures; loss of key customers; order cancellations or reduced bookings; changes in manufacturing yields; control of costs and expenses; significant litigation; risks associated with acquisitions and dispositions; risks associated with leverage and restrictive covenants in debt agreements; risks associated with international operations; the threat or occurrence of international armed conflict and terrorist activities both in the United States and internationally; risks and costs associated with increased and new regulation of corporate governance and disclosure standards (including pursuant to Section 404 of the Sarbanes-Oxley Act of 2002); and risks involving environmental or other governmental regulation. Information concerning additional factors that could cause results to differ materially from those projected in the forward-looking statements is contained in ON's Annual Report on Form 10-K as filed with the Securities and Exchange Commission (the "SEC") on February 12, 2008, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other of ON's SEC filings, and Catalyst Semiconductor's Annual Report on Form 10-K as filed with the SEC on July 3, 2008, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and other of Catalyst Semiconductor SEC filings. These forward-looking statements should not be relied upon as representing ON's or Catalyst Semiconductor's views as of any subsequent date and neither undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made.

This communication is being made in respect of the proposed transaction involving ON and Catalyst Semiconductor. In connection with the proposed transaction, ON plans to file with the SEC a Registration Statement on Form S-4 containing a Proxy Statement of Catalyst Semiconductor and a Prospectus of ON and each of ON and Catalyst Semiconductor plan to file with the SEC other documents regarding the proposed transaction. The definitive Proxy Statement/ Prospectus will be mailed to stockholders of Catalyst Semiconductor. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND OTHER DOCUMENTS FILED WITH THE SEC CAREFULLY IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

Investors and security holders will be able to obtain free copies of the Registration Statement and the Proxy Statement/Prospectus (when available) and other documents filed with the SEC by ON and Catalyst Semiconductor through the web site maintained by the SEC at www.sec.gov. In addition, investors and security holders will be able to obtain free copies of the Registration Statement and the Proxy Statement/Prospectus (when available) and other documents filed with the SEC from ON by directing a request to ON Semiconductor Corporation, 5005 East McDowell Road, Phoenix, AZ, 85008, Attention: Investor Relations (telephone: (602) 244-3437) or going to ON's corporate website at www.onsemi.com, or from Catalyst Semiconductor by directing a request to Catalyst Semiconductor, Inc., 2975 Stender Way, Santa Clara, CA 94054, Attention: Investor Relations (telephone: 408-542-1000) or going to Catalyst Semiconductor's corporate website at www.catsemi.com.

ON and Catalyst Semiconductor, and their respective directors and executive officers, may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding ON's directors and executive officers is contained in its annual proxy statement filed with the SEC on April 4, 2008. Information regarding Catalyst Semiconductor's directors and executive officers is contained in Catalyst Semiconductor's annual proxy statement filed with the SEC on August 24, 2007. Additional information regarding the interests of such potential participants will be included in the Proxy Statement/Prospectus and the other relevant documents filed with the SEC (when available).

ON Semiconductor and the ON Semiconductor logo are registered trademarks of Semiconductor Components Industries, LLC. Catalyst Semiconductor and the Catalyst Semiconductor logo are registered trademarks of Catalyst Semiconductor, Inc. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although ON Semiconductor and Catalyst Semiconductor reference their respective websites in this news release, information on those websites is not to be incorporated herein.

SOURCE: ON Semiconductor Corporation


Investor Relations Contact: 
Ken Rizvi 
ON Semiconductor 
Corporate Development, Treasury & Investor Relations 
602-244-3437 
[email protected] 
or 
David Eichler 
Catalyst Semiconductor 
Investor Relations 
408-542-1000 
[email protected] 
or 
Media Relations Contact: 
Anne Spitza 
ON Semiconductor 
Media Relations 
602-622-5852 
[email protected] 
or 
Sherry Hill 
Catalyst Semiconductor 
Marketing & IR Communications 
408-542-1080 
[email protected] 

Copyright Business Wire 2008

[setravis]

hhmmm...if it gets to $10   

currently trades at relative multiples substantially below peer averages, and I believe the stock is very attractively priced right now.

ONNN's current return on capital is 17.8%, compared to its cost of capital of 11.6%.

The company should experience accelerating growth over the foreseeable future. They are executing a strategy of expanding its power management products to a broader range of end markets, which should also lead to better profitability through higher blended average selling prices and increasing plant utilization.

In my opinion this stock is undervalued -- Outperform!


52wk Range: 4.86 - 13.15
Volume: 8,612,622
Avg Vol (3m): 11,552,700
Market Cap: 3.74B
P/E (ttm): 13.69
EPS (ttm): 0.69
Div & Yield: N/A (N/A)

Technicals
Close Above the 50-day MA
Close Above the 13-day MA
Most Actives

Last Price Quote is:
5.02%above 13-day MA
5.68%above 50-day MA
RS Rating: 94 

Fundamentals
Earnings Expected on Aug 6

Key Data:
Market Cap (M): $3,542.17 
P/E Ratio: 13.18 
PEG Ratio: 0.679012 
Next Earnings: 08/06/2008
Last Analyst Rating: Buy

[setravis]

PHOENIX, Aug 07, 2008 (BUSINESS WIRE) -- ON Semiconductor (ONNN, Trade), a global leader of efficient power semiconductor solutions, has announced the expansion of its discrete packaging portfolio with new micro-packaged transistors and diodes. The new additions broaden the company's micro-packaged portfolio of transistors and diodes targeted to meet the needs of today's most demanding space-constrained portable applications.

"Small size and low profile while maintaining power density are critical parameters for our portable product customers," said Mamoon Rashid, vice present and general manager of ON Semiconductor discrete products division. "ON Semiconductor offers micro-packaged diodes and transistors for power management, switching and protection applications to enable expanded feature integration in their portable products - without increasing the size of their end-products or reducing power efficiency."

New Micro-Packaged Transistors

ON Semiconductor now offers general purpose and bias resistor transistors (BRT) in SOT-723, SOT-963 and in SOT-1123 packages - which measure 1.0 mm x 0.6 mm x 0.37 mm. These smaller, low-profile packages allow design engineers to use them in such applications as mobile handsets. The dual and complementary micro-packaged transistors are lead-free and halogen-free. Budgetary pricing ranges from $0.06 to $0.08 USD per unit in 8,000 quantities.

For more information, visit http://www.onsemi.com or contact Steve Sheard at [email protected].

New Micro-Packaged Diodes

Low Vf Schottky Diodes

ON Semiconductor has expanded its SOD-923 NSR Schottky diode portfolio with higher current capability of up to 500 milliamps (mA) and higher reverse blocking voltage up to 70 volts (V). These micro-packaged Schottky diodes are ideal for use in camera flash and module drivers, boost converters for LCD/ or key-pad backlighting and a wide range of dc-dc converter applications in space-constraint portable applications. ON Semiconductor's Schottky diodes are highly optimized for lower forward voltage drop and lower leakage current resulting in higher efficiency and lower losses. The SOD-923 packaged Schottky diodes are available in the lead-free, halogen-free packages and budgetary priced at $0.064 USD per unit in 8,000 quantities.

For more information, visit http://www.onsemi.com or contact Steve Sheard at [email protected]

New Zener Diodes

The industry-leading Zener portfolio from ON Semiconductor now features the NZ9F series in the tiny SOD-923 package measuring only 1.0 mm x 0.6 mm x 0.4 mm. With a steady state power dissipation of 200 milliwatts (mW), the NZ9F series offers the same power handling capability as the SOD-323 package in a fraction of the board space. This series features a full zener breakdown voltage range from 2.4 V to 24 V with both 2 percent and 5 percent tolerance devices, offering the design engineer optimum flexibility for regulation and cost. Typical applications for these zener diodes include voltage reference, low current voltage regulation and voltage clamping. Budgetary pricing for these devices is $ 0.04 USD per unit in 8,000 unit quantities.

For more information, visit http://www.onsemi.com or contact Jennifer Johnson at [email protected].

About ON Semiconductor

With its global logistics network and strong product portfolio, ON Semiconductor (ONNN, Trade) is a preferred supplier of efficient power solutions to customers in the power supply, automotive, communication, computer, consumer, medical, industrial, mobile phone, and military/aerospace markets. The company's broad portfolio includes power, analog, DSP, mixed-signal, advance logic, clock management and standard component devices. Global corporate headquarters are located in Phoenix, Arizona. The company operates a network of manufacturing facilities, sales offices and design centers in key markets throughout North America, Europe, and the Asia Pacific regions. For more information, visit http://www.onsemi.com.

ON Semiconductor and the ON Semiconductor logo are registered trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the company references its Web site in this news release, such information on the Web site is not to be incorporated herein.

SOURCE: ON Semiconductor


ON Semiconductor, Phoenix 
Emily Puckett, 602-244-5670 (Marketing Communications) 
[email protected] 
Ken Rizvi, 602-244-3437 (Investor Relations) 
[email protected] 

Copyright Business Wire 2008

[setravis]

ON Semiconductor announces layoffs, restructuringPortland Business Journal


ON Semiconductor Corp. is scaling back costs in 2009 and issuing a lower forecast for the year as the company looks at laying off 10 percent of its work force, closing plants temporarily and giving employees unpaid time off.

That effects 500 employees in Gresham.

The Phoenix-based semiconductor manufacturer said it would furlough about 1,500 workers, or about 10 percent of its global employee base. It also plans to take temporary actions, such as closing factories for four to six weeks during the first and second quarters, cutting about $80 million out of capital spending, 23 percent out of senior executives salaries and 15 percent out of other employee salaries.

Also among temporary measures will be a hiring freeze and elimination of second-half 2008 bonus payments.

ON plans to close its Gresham chip factory — which it bought from LSI Logic Corp. in 2006 — for at least four weeks during the first half of the year and the plant's 500 employees will have to take an additional two weeks of unpaid time off. ON did not say whether Gresham employees will be included in 1,500 job cuts.

ON (NASDAQ: ONNN) also adjusted its fourth-quarter 2008 outlook, saying it expects revenue of between $480 million and $490 million, which would leave it down about 16 percent to 17 percent from 2007.

"Our updated fourth-quarter 2008 revenue outlook reflects the reduction in demand we have experienced as a result of deteriorating conditions in the global economy," said Keith Jackson, ON Semiconductor president and CEO in a prepared statement. He added that the company has increased its cash on hand and the first quarter likely will continue to present the company with challenges.

The payroll cutbacks will be comprise either three weeks of unpaid time off for senior executives at one level and two weeks of unpaid time off for other workers or a four-day work week. The actions will occur in the first and second quarters. Employees also will receive no pay increases or bonuses in 2009.

The company expects the changes to save about $40 million to $50 million a quarter, about 25 percent of which would come from the temporary measures. The overall cost of the restructuring is expected to be between $20 million to $30 million.

[setravis]

PHOENIX, Jan 26, 2009 (BUSINESS WIRE) -- ON Semiconductor (ONNN, Trade), a leading global supplier of high performance, energy efficient, silicon solutions, has announced that its NCP1081 and NCP1083 integrated Power-over-Ethernet Powered Device (PoE-PD) / DC-DC converter controllers have been verified to meet the upcoming IEEE802.3at standard for high power communications applications. Both devices have not only passed the IEEE 802.3af standard tests but have also been verified by the University of New Hampshire Interoperability Laboratory (UNH-IOL) for the recent draft IEEE 802.3at (D3.1) standard - which includes a test of the two event physical layer classification. The UNH tests confirm that these devices can enable PoE+ compliant platforms on the market, and are in line with the evolving high power requirements of the WLAN access point, WIMAX, industrial and IP camera markets.

"Future changes to the IEEE802.3at standard that could result in PoE-PD silicon changes are not anticipated," said Koen Geirnaert, ON Semiconductor's PoE-PD product marketing manager. "As such, the NCP1081 and NCP1083 are expected to be in line with the final IEEE802.3at standard. These devices will enable the industry's first movers to deliver standard PoE+ based platforms to the market."

Device Features

ON Semiconductor's portfolio of integrated PoE-PD products contains four devices. The NCP1081 and NCP1083 provide power levels up to 25.5 watts (W) for applications in line with the draft IEEE 802.3at (D3.1) standard and up to 40 W for proprietary high power PoE applications. The NCP1080 and NCP1082 offer IEEE802.3af compliant power levels. The NCP1082 and NCP1083 are also capable of providing power via an auxiliary parallel supply.

The NCP1080/1/2/3 are pin-compatible and offered in a TSSOP-EP 20 pin package. This feature allows the customer to easily mix-and-match different PoE capabilities on different platforms.

The PoE-PD portfolio utilizes ON Semiconductor's automotive qualified, high-voltage SmartPower process to provide superior cable electrostatic discharge (CESD) and surge protection levels compared to other integrated PoE-PD /DC-DC converter controllers. Low on-resistance (Ron) and extended temperature range from -40degC to 85degC with full operation up to 150degC junction temperature allows these PoE-PD controllers to achieve record power levels while operating in harsh environments.

Pricing and Availability

All NCP1081/2/3/4 devices are currently available. The per unit prices for quantities of 1,000 and above are $1.45 USD for the NCP1080, $1.48 USD for the NCP1082, $1.80 USD for the NCP1081, and $1.85 USD for the NCP1083. NCP1081/3 evaluation boards are available for $150. For more information, please contact your local sales representative at www.onsemi.com.

About ON Semiconductor

With its global logistics network and strong product portfolio, ON Semiconductor (ONNN, Trade) is a preferred supplier of high performance, energy efficient, silicon solutions to customers in the power supply, automotive, communication, computer, consumer, medical, industrial, mobile phone, and military/aerospace markets. The company's broad portfolio includes power, analog, DSP, mixed-signal, advance logic, clock management, non-volatile memory and standard component devices. Global corporate headquarters are located in Phoenix, Arizona. The company operates a network of manufacturing facilities, sales offices and design centers in key markets throughout North America, Europe, and the Asia Pacific regions. For more information, visit http://www.onsemi.com.

ON Semiconductor and the ON Semiconductor logo are registered trademarks of Semiconductor Components Industries, LLC. All other brand and product names appearing in this document are registered trademarks or trademarks of their respective holders. Although the company references its Web site in this news release, such information on the Web site is not to be incorporated herein.

SOURCE: ON Semiconductor


 
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Media Relations   
Emily Puckett, 602-244-5670   
[email protected]   
or   
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Copyright Business Wire 2009


52wk Range: 2.35 - 10.85
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Market Cap: 1.70B
P/E (ttm): 7.73
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Last Price Quote is:
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Fundamentals
Earnings Expected on Feb 4

Key Data:
Market Cap (M): $1,713.12 
P/E Ratio: 7.85 
PEG Ratio: 0.978142 
Next Earnings: 02/04/2009
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[setravis]

updated chart look.......


Technicals
Most Actives

Last Price Quote is:
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15.45%above 50-day MA
RS Rating: 49 

Fundamentals
Earnings Expected on Feb 4

Key Data:
Market Cap (M): $1,713.12 
P/E Ratio: 7.85 
PEG Ratio: 1.10383 
Next Earnings: 02/04/2009
Last Analyst Rating: Neutral

[setravis]

Q4 2008 ON Semiconductor Corporation Earnings Release - After Market Close
ON Semiconductor Corporation ONNN 0.09 After Market Close

52wk Range: 2.35 - 10.85
Volume: 5,221,472
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Market Cap: 1.77B
P/E (ttm): 8.01
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Div & Yield: N/A (N/A)

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Most Actives

Last Price Quote is:
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Fundamentals
Earnings Expected on Feb 4

Key Data:
Market Cap (M): $1,713.12 
P/E Ratio: 7.85 
PEG Ratio: 1.04918 
Next Earnings: 05/05/2009
Last Analyst Rating: Neutral

[setravis]

ON Semiconductor Corporation today announced that total revenues in the fourth quarter of 2008 were a $488.7 million, an decrease of approximately 16% from the third quarter of 2008. During the fourth quarter of 2008, the company reported GAAP net loss of $519.6 million or $1.27 per share.

The fourth quarter 2008 GAAP net loss included net charges of $581.6 million, or $1.42 per share from special items, which are detailed in schedules to our earnings release. The largest special item of $557.4 million arises from our annual goodwill impairment testing and is an estimate finalized with the filing of our 10-K.

Fourth quarter 2008 non-GAAP net income was $62 million or $0.15 per share on a fully diluted basis.

On a mix adjusted basis, average selling prices in the fourth quarter of 2008 were approximately flat with the third quarter of 2008.

The company's GAAP gross margin in the fourth quarter was 38%. Non-GAAP gross margin in the fourth quarter was 39.9%.

Adjusted EBITDA for the fourth quarter of 2008 was a record $102.9 million.

We exited the fourth quarter of 2008 with record cash and equivalents of approximately $458.7 million or approximately $41 million more than the third quarter and approximately $184 million greater than FY07. We also exited the fourth quarter with the lowest debt position and the net deposition in the company's history as a public company.

During the fourth quarter, the company used $49.4 million of cash to retire $60.9 million of its zero convertible senior notes.

At the end of the fourth quarter, total days sales outstanding were approximately 35 days.

ON Semiconductor total inventory was approximately $335.5 million or approximately 101 days. This is up from the third quarter 2008 of $309.4. Included in our total inventory is approximately $28 million of inventory, which includes inventory write-off to share value related to the acquisition of Catalyst Semiconductor, which closed in the fourth quarter of 2008. Also included in our fourth quarter inventory is approximately $6 to $8 million of bridge inventory related to the acceleration of the three closures previously announced. Also included in our overall inventory is approximately $40 million of inventory associated with the write-up to share value from the AMIS and Catalyst Semiconductor acquisitions. This is up approximately $2 million from the third quarter of 2008 due to the Catalyst acquisition.

Distribution inventories were approximately 12 weeks at the end of the fourth quarter. On a dollar basis by approximately $30 million, but the weak, as a result of overall sales. Cash capital expenditures during the fourth quarter of 2008 were approximately $20 million and total cash capital expenditures for the year were approximately $95 million.

Now, I would like to turn it over to Keith Jackson for additional comments on the business environment.

Keith Jackson

Thanks, Don. Now for an overview of our end-markets. During the fourth quarter of 2008, our end market splits were as follows. The computing end-market represented approximately 23% of fourth quarter 2008 sales.

The communications end-market which includes wireless and networking represented approximately 20% of sales.

The automotive end-market represented approximately 16% of fourth quarter sales.

The consumer electronics end-market represented approximately 16% of sales. Industrial, military, and aerospace represented approximately 19% of sales and medical represented approximately 6% of sales.

During the fourth quarter on a direct billings basis, no ON Semiconductor product OEM customer represented more than 4% of sales. Our top five product OEM customers were Continental Automotive Systems, Delta, LGL Electronics, Motorola and Samsung.

On a geographic basis, excluding ON Semiconductor's historical manufacturing services revenue, our contribution from sales in Asia represented approximately 59% of revenue. Our sales in the Americas represented approximately 22% of revenue and Europe represented approximately 19% of revenue during the quarter.

Looking across the channels, sales to distribution channel were approximately 41% of fourth quarter revenue. Direct sales to OEMs represented approximately 48% of revenue and EMS channel represented approximately 11% of revenue.

During the fourth quarter, ON Semiconductor revenues broken out by our divisions were as follows. The custom and foundry product group represented approximately 30% of fourth quarter sales. The standard products group represented approximately 22% of sales. The automotive and power regulation group represented approximately 20% of sales. The computing products group represented approximately 20% of sales and the digital and consumer products group represented approximately 8% of sales. In addition, ON Semiconductor recognized approximately $8 million of revenue during the quarter from the acquisition of Catalyst Semiconductor. We will publish the annual revenue, gross margin and operating margin breakout of these divisions in our Form 10-K filing for this period.

Now I'd like to provide you with some details of other progress we've made. 2008 was a year of solid revenue growth for the company. We recorded approximately $2.1 billion of total revenues for 2008 and generated approximately $394 million in cash flow from operating activities.

During the year, we closed two acquisitions, which have furthered the successful transformation of ON Semiconductor into an analog and power solutions leader. These acquisitions, coupled with ON Semiconductor's global footprint, effective channels of distribution, and top tier customer relationships will allow an even broader and deeper penetration of the automotive, computer, consumer, industrial, medical and wireless markets in years to come.

The end of 2008 and the beginning of 2009 have been a challenging time for the Semiconductor industry. Sales came down dramatically in the fourth quarter of 2008 and we are expecting further declines in the first quarter of 2009. We are uncertain as to the depth orderation of the current recession. To prepare for this uncertainty, we announced a number of proactive cost savings actions on January 7 that once completed should take revenues required for cash breakeven down to approximately $340 million.

Today, we also announced plans to close an additional wafer facility. Disclosure is consistent with the company's ongoing manufacturing consolidation strategy and cost saving measures.

The fab we decided to close is our remaining Phoenix wafer fab. Disclosure is expected to result in a total cash charge of approximately $8 to $10 million beginning in the first quarter of 2009.

We expect to eliminate approximately 350 jobs at this fab between now and early 2010. As a result of the fab closure, the company expects to save a total of approximately $9 million per quarter compared to the third quarter of 2008 with the full benefit seen in the second quarter of 2010.

In the computing end-market, we are positioned as a leader for desktop power management and our notebook presence continues to grow. In the current desktop platform, we increased our penetration by over 50% from the prior platform, having secured over 25 design wins.

On the notebook segment, we were able to increase our position by over 20%, having secured over ten design wins.

We believe we are well positioned and have the momentum to continue our success on the next generation of desktop and notebook platforms. In addition to our expertise, we are also developing a broader system power portfolio to further strengthen our value proposition in notebooks and desktops.

We continue to see penetration of our controllers, drivers, audio amplifiers and MOSFET products in both notebook and server applications. In addition, we are seeing new opportunities from our Catalyst acquisition to gain share with our product line in the computing market.

The overall unit demand returns to the computing end market, we believe our computing business should see above market growth as a result of our recent platform gains.

In the medical market, we saw strong sequential growth in the fourth quarter of over 20%. Our previous design wins in development activities continue to make this a profitable and growing end market for ON Semiconductor. Our audio DSO products are gaining traction in both North America and Asia for hearing aid as well as additional non-medical specific wireless applications.

As anticipated, we experienced continued slowing in our overall automotive business in the fourth quarter. Given the continued global tightening of credit for large ticket items such as automotives, we anticipate a continued slow period of sales to last at least through the first half of 2009.

Once the economic environment stabilizes, we believe we are strongly positioned with the leading automotive OEMs through our design, sales, and supply chain resources, along with our broad portfolio of ASICs, CAN and LIN products, motor control products, drivers, MOSFETs, and discrete devices.

Now I would like to turn it back over to Donald for other comments and our other forward-looking guidance. Donald?

Donald Colvin

Thank you Keith. Fourth quarter 2008 outlook. Over the last few months, we have seen considerable uncertainty and volatility in the global market. As a result, our guidance is not as in the past. We have updated our guidance to accommodate our best view today. In a normal environment, our customers place [models] with ON Semiconductor. However, given our customers limited visibility, we have reduced the [models] with Semiconductor suppliers. As such, we believe the Semiconductor industry will move towards a higher term environment.

In addition, we currently expect our distribution partners to reduce their inventories during the first quarter of 2009.

With our sale through recognition policy for this channel, this reduction is expected to result in incremental revenue above our beginning levels.

In the last few weeks, prior to Chinese New Year, we saw stabilization of our backlog as well as some point of turn activity with a 15-week greater than one in January.

Based upon current product booking trends, backlog levels, manufacturing service revenues and estimated turns, we anticipate that total revenues will be approximately $340 million to $380 million in the first quarter of 2009. Backlog levels at the beginning of the first quarter of 2009 were down from backlog levels at the beginning of the fourth quarter of 2008 and represent approximately 80 to 90% of our anticipated first quarter 2009 revenues.

We expect the average selling prices for the first quarter of 2009 will be down approximately 2% sequentially.

We expect cash capital expenditures of approximately $20 to $25 million in the first quarter of 2009, total cash capital expenditures for the total year of approximately $55 to $60 million.

For the first quarter, we expect GAAP gross margin of approximately 29 to 31%. Our GAAP gross margin in the fourth quarter will be negatively impacted from among other things expensing of appraised inventory fair market value step up associated with the acquisitions of AMIS and Catalyst Semiconductor.

We expect non-GAAP gross margin of approximately 31 to 33%. Non-GAAP gross margin excludes special items of approximately $7 to $8 million.

For the first quarter. we also expect total GAAP operating expenses of approximately $146 to $148 million. GAAP operating expenses include the amortization of intangibles, stock base compensation expense, restructuring, asset impairments, and other charges which total approximately $31 to $33 million.

We also expect total non-GAAP operating expenses of approximately $114 to $116 million.

We anticipate that net interest expense and other expenses will be approximately $21 million for the first quarter of 2009. This includes a non-cash interest expense of approximately $9 million from the adoption of stock position number EPB 14/1, relating to our convertible senior notes.

Cash taxes are expected to be approximately $3 million. We also expect stock base compensation expense of approximately $12 to $13 million in the first quarter of 2009.

This number could fluctuate based on yearly stock awards schedule this quarter.

Our current share count is approximately 413 million shares based on the current stock price. Further details on share count and EPS calculations are provided regularly in our 10Qs and Ks.

As previously stated, management is committed to deliver positive operating cash flow under all circumstances. It is obvious that the industry is currently shipping under the end market consumption of finished products. We believe the industry should hit the bottom of the current correction in the first half of 2009.

We also believe that the second half of this year should see a measurable recovery in our business.

Management's strategic objective remains achieving 45% gross margin, 22% operating income. As previously stated, we are prepared to take additional cost reductions if required to achieve this strategic objective.

With that, I would like to start the Q&A session.

Question-and-Answer Session

Operator

(Operator instructions)

Your first question comes from Chris Danely with J.P. Morgan.

Scott Jones (for Chris Danely - J.P. Morgan)

This is Scott Jones calling in for Chris. I have a first question on OpEx trends in gross margin going over the course of the year. How do you expect it to take down given the cost reductions in the out quarters? And then on a gross margin, could you tell me how you expect that to trend up to the target of 45% with the plans now of the fab closure help you get there over time?

Donald Colvin

Operating expense and the other is on gross margin. I think it's obvious the industry has seen a dramatic form in its revenue and we are currently shipping under consumption. So gross margins for us is very much predicated of one the level of revenues. The faster the recovery of the revenue, the faster the recovery of the gross margin. And so, right now I think we're in a bit of a holding. We don't want to start projected rosy numbers and so with the relatively modest outlook we gave, we think we can probably grow our gross margin in the mid-single digit range, but we don't have enough certainty on the exit revenue for the year to give any more color to that and as a company we always just give gross margin and revenue guidance one quarter at a time and especially in these most uncertain times, we don't think it's appropriate to stick our necks out any further than normal.

As far as operating expense is concerned, we've taken a lot of actions on operating expense. Salary reductions, bonus cancellations, headcount reductions, discretionary expense reductions, etc. and we would like to make some of these salary reductions only temporarily. So again, a lot depends on the outlook for our business. As I stated and Keith stated, we are constantly reviewing our P&L structure. So again, I can't give you a specific answer. I think the number, if you look, in the first quarter for operating expense. If you look at that compared to the third quarter of last year, it is down on an apples to apples basis by more than $20 million in a quarter. So when I look at other companies, that cash OpEx expense saving and I think there we are certainly taking strong actions. If we are required to take additional actions, we will not hesitate to take them.

Scott Jones (for Chris Danely - J.P. Morgan)

Do you guys have any color at all for outside of automotive where you saw the most weakness and obviously medical seems to have held up a little better. So any color on which one has underperformed or outperformed?

Keith Jackson

Simple answer to that one is medical is the only market. It actually grew for us quite strongly, but it's the only market that was up. Everything else was down and they were all down substantially. That 16% down overall, quarter-on-quarter, actually is spread pretty well between all the markets. So there was really nowhere that was a safe haven and other than automotives, nowhere that stands out as being particularly weak.

Operator


Your next question comes from John Pitzer with Credit Suisse.

John Pitzer - Credit Suisse

First when you talked a little about pricing in December and what you expect for March, I guess I'm trying to understand as units start to pick up and we actually get them to the recovery phase of the cycle, what's your expectation on ASPs and pricing in general?

Donald Colvin

ASPs were relative flat in the fourth quarter. We did get some benefit there from currencies in our favor. We don't have that currency benefit in the first quarter and we also got some long-term pricing contrasts kick in Q1. So that's why we stated 2% price erosion.

As far as inventories are concerned, I gave a very detailed explanation on inventories. Basically the core inventories went down. We have to build some bridge and we got some fair market value inventories from the AMIS and Catalyst acquisitions.

We want to continue to reduce our inventories in the first quarter and as we stated in the prepared remarks, John, we anticipate that our distributor partners will also continue to reduce their inventories in the first quarter.

We haven't given any specific guidance on the second quarter, but we did state that we expect that there will be a meaningful recovery in the second half. So as far as an increased demand having a positive impact on ASPs, I think that's more of a second half story.

John Pitzer - Credit Suisse

Are you at all concerned given where utilization levels are going to trough for the industry. Pricing never seems to be the first casualty of a downturn. It always seems to get more aggressive as unit demand starts to pick up and you're kind of indicating that a pickup in demand might be positive in pricing. I'm just trying to figure out why you wouldn't be more worried about ASPs as demand starts to pick up.

Donald Colvin


We remain on ASPs, John. It would be a foolish mind to say that we have complete control of a huge market. In our models that we project, one or two percent ASP reduction per quarter. And so, the second half of the year we have not turned away from that for modeling purposes. So we are not modeling an ASP increase in the second half. We remain vigilant, but we will not be the instigator in a price war, as we believe we are in a relatively elastic end market demand situation.

Keith Jackson

John, I would add here really from a gross margin perspective, there may be some more pressures on ASPs as the market structure recover in the second half when there is some demand to go after, but really the gross margins are going to be mostly moved just by the volumes that we got in utilization range. If you look at what we guided you to in Q1, we're having a substantial reduction in distribution inventories and since we're sell through, that won't roll through to the revenue line works, but it will mean our factories are significantly under-loaded and we're reducing our own inventories at the same time in our low-demand market.

So utilization rates, which were kind of mid-60's in Q4 are going to go to mid-40's in Q1 and I think that that is an overwhelming impact on gross margins as you get to the second half versus any ASP impacts you may have.

Operator

Your next question comes from John Barton with Cowen.

John Barton - Cowen

40% utilization in March, what would that utilization figure be if the Phoenix fab was closed as of January 1 for the quarter?

Keith Jackson

So that factory, between 5 and 10% of the volumes in the numbers. So you could get the impact of that into the number.

John Barton – Cowen

In a previous response, you were talking about, or Donald was talking about, the temporary cost savings, embargos on bonuses, non-paid time off, etc. How are you thinking about bringing that back in? I mean how long can you stay in that scenario if revenue doesn't come back? What type of revenue return would you have to see until you start to bring that back? What are the basic parameters the way you think about it going forward?

Keith Jackson

Again, basically the way we're managing the business is no different. We've been telling folks we're managing it for generating cash. So as the business recovers to a point where our cash generation allows us to start returning some benefits, we're going to absolutely get on that to the extent that that doesn't happen in the near term, then we'll figure out what other alternatives are out there for us.

John Barton – Cowen

Design activity, in the current environment that we're seeing, at end customers is it changing their design activity. Meaning, are they accelerating to new projects that get design in, because they're trying to hit lower price points. Are they holding up on new designs because they're trying to get more life out of their R&D spend or how are you seeing customers react?

Keith Jackson

We've seen them react in all manners. It really does differ by customer. What I will say is we're seeing a larger percentage put energy into cost-reducing existing platforms than we traditionally see. You see some people who are accelerating new platforms. You see some of them who are delaying new platforms, but the only real change through the last three or four months has been more people putting more energy in the cost-reducing existing platforms.

Operator


Your next question comes from Craig Berger from FBR Capital Markets.

Craig Berger - FBR Capital Markets


So you've got three fabs closing in the first half of this year and then Phoenix a little further out. How do we think about that impacting the overall margin structure?

Keith Jackson

It's actually going to be for the first three quarters of the year. Three fabs this year, we won't get all of them out in the first half. There'll be some trickling into the third quarter.

From a gross margin perspective, again, maybe the simplest way to look at life is the volumes that those factories represent of the total and of course it is wafer fab not l. fab and backend. So there is a factor of dilution, if you will, in the total GM. But those three factories when added together are going to be somewhere in the 20% to 20+ percentage of the total volumes that'll come out of the system.

Craig Berger - FBR Capital Markets

So is it 20% of half of the cogs, is that the right way to think about that then?

Keith Jackson

That's not too far off. On the cogs, it's not the variable portion, which is materials. It's the fixed portions.

Donald Colvin

I think the trouble we have with this, Craig, is you got to baseline something. So if you baseline two or three activity, a fab closure and the ones we have announced, are roughly on average $10 million, $8 to $10 million a quarter savings, but that's based upon Q3 activity leveling and that would be an approximate 1.5% gross margin improvement. But the activity levels in the first quarter at 40% down on Q3. A lot of these savings are going forward. So that's why going forward, the gross margin expansion isn't so much a fab closure story as a revenue return to growth story and that's what we have to factor in our models.

We can also see and I compared to the Q3 run rate. Keith mentioned fixed cost. We have taken $30 million, we are projecting $30 million of fixed cost reductions from the fab closures compared to a base Q3 run rate. So again, as we made in a pre-announcement at the beginning of January, these actions were taken, would be $30 million on fixed, $20 million on operating expense. In addition to that, additional cost savings from the closure we announced, which would be approximately $8 to $9 million savings compared to the Q3 run rate.

Keith Jackson

Craig, we're not beating around the bush, but the reality is we have such a small fixed cost base relative to the total cogs. You get a very big drop and so when you're trying to calculate percentages, the revenue level is the most determinant factor.

Operator


Your next question comes from Tristan Gerra with Robert Baird.

Tristan Gerra - Robert W. Baird

Following the factory shutdowns in January, what will be your sell-in in Q1 sequentially?

Keith Jackson

The early reports we're getting from Asia right now, Tristan, indicate a favorable bias post Chinese New Year. We're hearing that some of the consumption rates were a little higher than they were planning on and therefore we're starting to see some more orders, but I want to emphasize we're talking a couple of days back now from Chinese New Year. So I don't want to declare a victory and move on yet, but it does seem like we're seeing a little better sell through and January was not as bad as we feared. We mentioned earlier if that includes our sell through, there actually was pretty reasonable, other than of course the Chinese New Year week, which goes down dramatically.

From a sell-in, sell-through perspective, our estimate is that we'll do approximately $25 million or so less on sell-in than sell-through. In other words, there will be a bleed of inventory of that kind of magnitude. Of course, we don't know that yet. All the orders aren't in, but that would be our best estimate as of today.

Tristan Gerra - Robert W. Baird

Also, where are you in terms of outsourcing right now and what would be your target by end of year if this has changed from what you previously said?

Keith Jackson

It's a little over 20% for us, including the acquisitions which were higher percentages of outsource. We are moving aggressively to get more of that inside. Based on the Catalyst piece and the AMIS piece, I would say that we have a chance of moving that model down 300 or 400 basis points by the end of the year.

Operator


Your next question comes from Harold Arowall - UBS

Harold Arowall – UBS

A question on manufacturing consolidation. Just wondering where are we in the process and how much is done and how much needs to be done and if you could provide a roadmap as to how we should think about it.

Keith Jackson

Sure. So the four inch line that we have in Europe should be closed around the end of March timeframe. We've got a six inch line in Europe that should be closed somewhere around July and then we have a five inch line here in the U.S. that should be certainly by September, see closure on that. Then as we mentioned today, the last factory, which is a six inch factory here in Phoenix, would be in the first quarter in 2010.

Harold Arowall – UBS

Second question is about your gross margin for March quarter. Just wondering what are the moving parts, dilution or anything else?

Keith Jackson

Well again, prices were not a significant factor. We have been offsetting those with our normal cost reduction activities. It's really utilization. We're pulling back very, very hard to get the inventories down, both in the distribution channel and internally, plus the lower end demand. So it's really going to a mid-40's kind of utilization rate that has 90% of the impact.

Operator


Your next question comes from Steve Smigie - Raymond James


Steve Smigie - Raymond James

I was wondering if you could give some color on inventory channel, not so much in terms of weeks or days of inventory so much as on a unit base to a level where it's kind of surprises you how low it is or are your distributors being reasonable relative to the current demand?

Keith Jackson

I actually think they're being very reasonable and if anything, Steve, they have surprised me at how much inventory they're still keeping. This could have ballooned a lot more than it has. They've actually kept up fairly well, but it was clear in the fourth quarter, they weren't reacting quick enough. I think now in the first quarter looking at their orders on this, they have done very appropriate actions to get us back into that, you know, 11 to 13 weeks of their model, but back toward the lower end of the model.

So, in general, just surprised they haven't reacted more strongly in getting the inventory out.

Steve Smigie - Raymond James

Donald, you mentioned some hope for a measurable recovery in the back half. Is that just related to the fact that you think you're under-shipping demand or is there something else that would make me feel a little bit better about that?

Donald Colvin

I think that's exactly the first point. We look at the down trend quarter-on-quarter for the major end market segments. It certainly would appear to us from reconciling that the consumption of Semiconductors is still behind the consumption of finished products and we think that certainly will be a meaningful second half recovery.

Operator


Your next question comes from the line of Kevin Cassidy with Thomas Weisel.

Kevin Cassidy - Thomas Weisel Partners


I wonder if we could shift gears a little bit and talk about the notebook position. You said you're improving by 20%. I wonder if you could put some framework around that.

Keith Jackson

We of course measure ourselves by the number what we'll call major board platforms that we win, excuse me, at the key manufacturers of notebooks largely in Taiwan and so just kind of generation-on-generation, we've got about 20% more of those platforms. Again, I think it's self explanatory. What I can't tell you is how many notebooks are going to sell.

Kevin Cassidy - Thomas Weisel Partners

Any new customers or same customers and just deeper penetration?

Keith Jackson

Deeper penetration for the most part.

Kevin Cassidy - Thomas Weisel Partners


Do you have an ASP?

Keith Jackson

That I don't have a single ASP, because again it's blended, everything from the little low end books to the high end books and it definitely varies by platform dramatically.

Operator


Your next question comes from the line of Patrick Wang with Wedbush Morgan Securities.

Patrick Wang - Wedbush Morgan

I know you guys talked about closing that six inch you've got down in Phoenix and the $9 million quarterly impact. Could you help remind us some of the ongoing programs that you've got going on right now that permanently lower OpEx over the next year or so?

Keith Jackson

Okay, so we've got three other wafer fabs. A four inch, a five inch, and a six inch that are being closed in 2009, and I think Donald already gave you some numbers of approximately impact of $8 to $10 million per quarter each and I've already given timing on that earlier in the call. So those are factory closures on a permanent basis. We've also had significant leaning out from a headcount perspective. Looking across the company for ways to get more efficiency and we announced that again there was over 10% reduction in headcount before the latest announcement for the factory.

Everything we've put in writing, it's salary reductions right now of equivalent of two weeks per quarter across the company and elimination of bonuses across the company. No merit increases this year for anyone in the company. What am I missing, Donald?

Donald Colvin

Discretionary actions as well. So as Keith said, if you look at our non-GAAP operating expense in the third quarter, the reason why I say that, because it takes out the amortization of intangibles, non-cash base stock and things. It was $151 million in the fourth quarter of last year, which is a reference point and have about a $5 million of operating expense that we acquired. So adjusted EBITDA becomes $156 million and if you look at the mid point of the guidance we gave for the first quarter, it's $115 million. So again, that is a substantial reduction.

Now, as I stated, some of the actions taken we hope will only be temporary like salaried reductions, approximately $8 million a quarter savings. So the idea will be as other economies kick in because some of the people haven't had the full benefit of the headcount reductions. We're going to eliminate an SEP system, which will give us cost savings by the second quarter. As these things kick in, we are hoping that we will be able to restore some of the takeaways on the salary. That's the current model. So we're not seeing any dramatic incremental savings forward. Marginal savings, just big ones on operating expense, but we remain vigilant as we stated, and that's all predicated on a meaningful second half recovery and if necessary we will take other actions if that recovery is not there.

Patrick Wang - Wedbush Morgan

We think about OpEx over the course of the rest of the year and I'm clearly not asking you guys to provide any guidance here, but directionally is it something that we should think about trending downward slightly over the year?

Donald Colvin

Marginally downward, yes. Not dramatically, but marginally.

Patrick Wang - Wedbush Morgan

Second question here. In terms of your utilization here, I know that you said that kind of mid-40's expected here in Q1. If we think about going forward here, based on what we do know about Q2 and such, is Q1 likely going to be the trough for utilizations?

Keith Jackson

Right now the data would point to Q1 most likely being the trough. Obviously as predicated on whether the end markets, but at least with the look we have right now, because we're doing such a dramatic inventory reduction in distribution, it will probably be the trough.

Operator


Your next question comes from Craig Berger from FBR Capital Markets with a follow-up.

Craig Berger - FBR Capital Markets


Just a housekeeping here. You know first call has you including stock OpEx expense and so the numbers you lay out in your pro forma can't match our pro forma numbers. You're aware of that, right?

Donald Colvin

Well, we give all the different elements, Craig, but I hear what you say and we try to make things as explicit as possible. So we have given all the different ingredients, including our estimate of the non-cash base stock compensation going forward.

Craig Berger - FBR Capital Markets


Any plans to stop excluding that as a pro forma charge?

Donald Colvin

We're going to look at that when we do next quarter results.

Operator


There are no further questions in queue.

Keith Jackson

Thank you very much.

Donald Colvin

Thank you.

Operator


This concludes today's conference call. You may now disconnect.

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PHOENIX, Feb 04, 2009 (BUSINESS WIRE) -- ON Semiconductor Corporation (ONNN):

For the fourth quarter of 2008, highlights include:

-- Total revenues of $488.7 million

-- Adjusted EBITDA of $102.9 million

-- GAAP net loss of $1.27 per share, including goodwill impairment of $1.36 per share

-- Non-GAAP net income of $0.15 per fully diluted share

-- Record cash and cash equivalents of $458.7 million

-- Acquired Catalyst Semiconductor in an all-stock transaction

-- Repurchased $60.9 million of zero coupon convertible senior subordinated notes

For 2008, highlights include:

-- Total revenues of approximately $2.055 billion

-- Record fiscal year adjusted EBITDA of $474.7 million

-- GAAP net loss of $1.04 per share, including goodwill impairment of $1.46 per share

-- Non-GAAP net income of $0.89 per fully diluted share





52wk Range: 2.35 - 10.85
Volume: 17,822,765
Avg Vol (3m): 9,092,580
Market Cap: 1.98B
P/E (ttm): 8.90
EPS (ttm): 0.54
Div & Yield: N/A (N/A)

Technicals
Close Above the 50-day MA
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Most Actives
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Last Price Quote is:
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RS Rating: 56 

Fundamentals
Key Data:
Market Cap (M): $1,713.12 
P/E Ratio: 7.85 
PEG Ratio: 1.10929 
Next Earnings: 05/05/2009
Last Analyst Rating: Neutral

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