onsemi Announces Second Quarter 2024 Results
onsemi (ON) reported Q2 2024 results with revenue of $1,735.2 million, down 17% year-over-year. GAAP gross margin was 45.2% and non-GAAP gross margin was 45.3%. GAAP diluted EPS was $0.78, while non-GAAP diluted EPS reached $0.96. The company highlighted a free cash flow increase of ~$250 million year-over-year and returned ~$650 million to shareholders through stock repurchases over the last twelve months.
For Q3 2024, onsemi projects revenue between $1,700 to $1,800 million and non-GAAP diluted EPS of $0.91 to $1.03. The company remains focused on driving growth through market share gains, investments in strategic markets, and expanding its portfolio of analog and mixed-signal solutions. onsemi also emphasized strengthening its silicon carbide leadership in automotive, as evidenced by a recent supply agreement with Volkswagen Group.
onsemi (ON) ha riportato i risultati del secondo trimestre 2024 con ricavi di 1.735,2 milioni di dollari, in calo del 17% rispetto all'anno precedente. Il margine lordo GAAP era del 45,2% e il margine lordo non-GAAP era del 45,3%. L'EPS diluito GAAP era di $0,78, mentre l'EPS diluito non-GAAP ha raggiunto $0,96. L'azienda ha evidenziato un aumento del flusso di cassa libero di circa 250 milioni di dollari rispetto all'anno precedente e ha restituito circa 650 milioni di dollari agli azionisti attraverso riacquisti di azioni negli ultimi dodici mesi.
Per il terzo trimestre 2024, onsemi prevede entrate tra 1.700 e 1.800 milioni di dollari e un EPS diluito non-GAAP di $0,91 a $1,03. L'azienda rimane concentrata sulla crescita attraverso guadagni di quota di mercato, investimenti in mercati strategici e sull'espansione del suo portafoglio di soluzioni analogiche e miste. onsemi ha anche sottolineato il rafforzamento della sua leadership nel carburo di silicio nel settore automotive, come dimostrato da un recente accordo di fornitura con il Gruppo Volkswagen.
onsemi (ON) informó sobre los resultados del segundo trimestre de 2024 con ingresos de 1.735,2 millones de dólares, lo que representa una disminución del 17% en comparación con el año anterior. El margen bruto GAAP fue del 45,2%, y el margen bruto no GAAP fue del 45,3%. El EPS diluido GAAP fue de $0,78, mientras que el EPS diluido no GAAP alcanzó $0,96. La empresa destacó un aumento del flujo de caja libre de aproximadamente 250 millones de dólares en comparación con el año anterior y devolvió aproximadamente 650 millones de dólares a los accionistas a través de recompras de acciones en los últimos doce meses.
Para el tercer trimestre de 2024, onsemi proyecta ingresos entre 1.700 y 1.800 millones de dólares y un EPS diluido no GAAP de $0,91 a $1,03. La empresa sigue enfocada en impulsar el crecimiento a través de la ganancia de cuota de mercado, inversiones en mercados estratégicos y la expansión de su cartera de soluciones analógicas y de señales mixtas. onsemi también enfatizó el fortalecimiento de su liderazgo en carburo de silicio en el sector automotriz, como lo demuestra un reciente acuerdo de suministro con el Grupo Volkswagen.
onsemi (ON)는 2024년 2분기 실적을 발표하며 매출이 17억 3,520만 달러로 지난해 대비 17% 감소했다고 보고했습니다. GAAP 총 마진은 45.2%였고, 비 GAAP 총 마진은 45.3%였습니다. GAAP 희석 주당 순이익(EPS)은 $0.78이었고, 비 GAAP 희석 EPS는 $0.96에 달했습니다. 회사는 연간 약 2억 5천만 달러의 자유 현금 흐름 증가를 강조했으며, 지난 12개월 동안 주식 매입을 통해 약 6억 5천만 달러를 주주에게 반환했습니다.
2024년 3분기 동안 onsemi는 매출을 17억에서 18억 달러 사이로 예상하고 있으며 비 GAAP 희석 EPS는 $0.91에서 $1.03으로 예상하고 있습니다. 회사는 시장 점유율 증가, 전략적 시장에 대한 투자 및 아날로그 및 혼합 신호 솔루션 포트폴리오 확대를 통해 성장을 주도하는 데 집중하고 있습니다. onsemi는 또한 폭스바겐 그룹과의 최근 공급 계약을 통해 자동차 분야에서 실리콘 카바이드의 리더십을 강화하는 것에 대해 강조했습니다.
onsemi (ON) a annoncé ses résultats du deuxième trimestre 2024 avec des revenus de 1,735.2 millions de dollars, en baisse de 17% par rapport à l'année précédente. La marge brute GAAP était de 45,2% et la marge brute non-GAAP de 45,3%. Le BPA dilué GAAP était de 0,78 $, tandis que le BPA dilué non-GAAP a atteint 0,96 $. L'entreprise a souligné une augmentation du flux de trésorerie disponible d'environ 250 millions de dollars par rapport à l'année précédente et a retourné environ 650 millions de dollars aux actionnaires par le biais de rachats d'actions au cours des douze derniers mois.
Pour le troisième trimestre 2024, onsemi prévoit des revenus compris entre 1.700 et 1.800 millions de dollars et un BPA dilué non-GAAP de 0,91 à 1,03 $. L'entreprise reste concentrée sur la croissance par des gains de parts de marché, des investissements dans des marchés stratégiques et l'élargissement de son portefeuille de solutions analogiques et de signaux mixtes. onsemi a également souligné le renforcement de son leadership en carbure de silicium dans le secteur automobile, comme en témoigne un récent accord d'approvisionnement avec le groupe Volkswagen.
onsemi (ON) hat die Ergebnisse des zweiten Quartals 2024 veröffentlicht, mit Einnahmen von 1.735,2 Millionen Dollar, was einem Rückgang von 17% im Vergleich zum Vorjahr entspricht. Die GAAP-Bruttomarge betrug 45,2%, die Non-GAAP-Bruttomarge lag bei 45,3%. Der verwässerte EPS nach GAAP betrug 0,78 Dollar, während der verwässerte EPS nach Non-GAAP 0,96 Dollar erreichte. Das Unternehmen hob einen Jahreszuwachs des freien Cashflows von etwa 250 Millionen Dollar hervor und gab in den letzten zwölf Monaten etwa 650 Millionen Dollar an die Aktionäre durch Aktienrückkäufe zurück.
Für das dritte Quartal 2024 prognostiziert onsemi Einnahmen zwischen 1.700 und 1.800 Millionen Dollar sowie einen verwässerten EPS nach Non-GAAP von 0,91 bis 1,03 Dollar. Das Unternehmen konzentriert sich darauf, das Wachstum durch Marktanteilsgewinne, Investitionen in strategische Märkte und die Erweiterung seines Portfolios an analogen und Mixed-Signal-Lösungen voranzutreiben. onsemi betonte auch die Stärkung seiner Führung im Bereich Siliziumkarbid im Automobilsektor, was durch eine kürzliche Liefervereinbarung mit der Volkswagen-Gruppe belegt wurde.
- Free cash flow increased by ~$250 million year-over-year
- Returned ~$650 million to shareholders through stock repurchases over last twelve months
- GAAP gross margin of 45.2% and non-GAAP gross margin of 45.3% in Q2 2024
- Signed a supply agreement with Volkswagen Group, strengthening silicon carbide leadership in automotive
- Revenue decreased by 17% year-over-year to $1,735.2 million in Q2 2024
- GAAP diluted EPS decreased from $1.29 in Q2 2023 to $0.78 in Q2 2024
- Non-GAAP diluted EPS decreased from $1.33 in Q2 2023 to $0.96 in Q2 2024
- All business segments (PSG, AMG, ISG) reported year-over-year revenue declines
Insights
onsemi's Q2 2024 results reveal a mixed financial picture. Revenue declined 17% year-over-year to
The free cash flow increase of ~
Looking ahead, the Q3 2024 outlook suggests continued pressure, with revenue projected between
While the year-over-year declines across all business segments are concerning, the company's focus on strategic markets and expanding its portfolio of analog and mixed-signal solutions could position it well for future growth once market conditions improve.
onsemi's Q2 results reflect the broader semiconductor industry's current challenges, particularly in the automotive and industrial sectors. The 17% year-over-year revenue decline aligns with the industry-wide slowdown, primarily driven by inventory corrections and macroeconomic uncertainties.
However, onsemi's strategic focus on silicon carbide (SiC) technology is a bright spot. The recent supply agreement with Volkswagen Group underscores the company's growing leadership in SiC for automotive applications. This positions onsemi favorably in the rapidly expanding electric vehicle market, where SiC power semiconductors are important for improving efficiency and range.
The company's emphasis on market share gains and investments in strategic markets is prudent. By expanding its portfolio of analog and mixed-signal solutions, onsemi is diversifying its offerings and potentially reducing its vulnerability to sector-specific downturns.
The reorganization of reporting units within PSG (Power Solutions Group) and AMG (Advanced Solutions Group) suggests internal efforts to optimize operations and align with evolving market demands. This restructuring could lead to improved efficiencies and better positioning for future growth opportunities.
While current market conditions are challenging, onsemi's strategic initiatives and technological focus, particularly in SiC, position it well for a potential rebound when the semiconductor cycle turns positive again.
Free cash flow increase of
-
Revenue of
$1,735.2 million -
GAAP gross margin and non-GAAP gross margin of
45.2% and45.3% , respectively -
GAAP operating margin and non-GAAP operating margin of
22.4% and27.5% , respectively -
GAAP diluted earnings per share and non-GAAP diluted earnings per share of
$0.78 $0.96 -
Returned
~ of free cash flow over last twelve months to shareholders through stock repurchases$650 million
“We remain dedicated to driving growth through market share gains, doubling down on investments in strategic markets, and expanding the breadth of our portfolio of industry-leading products with analog and mixed-signal solutions,” said Hassane El-Khoury, president and CEO, onsemi. “As reflected by our recent supply agreement with Volkswagen Group, we also continue to strengthen our silicon carbide leadership position in automotive as we ramp production with leading global OEMs in
Selected financial results for the quarter are shown below with comparable periods (unaudited):
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GAAP |
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Non-GAAP |
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(Revenue and Net Income in millions) |
Q2 2024 |
Q1 2024 |
Q2 2023 |
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Q2 2024 |
Q1 2024 |
Q2 2023 |
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Revenue |
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Gross Margin |
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Operating Margin |
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Net Income attributable to ON Semiconductor Corporation |
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Diluted Earnings Per Share |
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Revenue Summary |
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(in millions) |
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(Unaudited) |
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Three Months Ended |
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Business Segment(1) |
Q2 2024 |
Q1 2024 |
Q2 2023 |
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Sequential
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Year-over-
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PSG |
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(4) % |
(15) % |
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AMG |
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(7) % |
(18) % |
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ISG |
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(13) % |
(22) % |
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Total |
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(7) % |
(17) % |
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(1) During the first quarter of 2024, the Company reorganized certain reporting units and its segment reporting structure. As a result of the reorganization of divisions within PSG and AMG, the prior-period amounts have been reclassified to conform to current-period presentation. |
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THIRD QUARTER 2024 OUTLOOK
The following table outlines onsemi’s projected third quarter of 2024 GAAP and non-GAAP outlook.
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Total onsemi
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Special
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Total onsemi
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Revenue |
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- |
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Gross Margin |
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Operating Expenses |
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Other Income and Expense (incl. interest), net |
( |
- |
( |
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Diluted Earnings Per Share |
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Diluted Shares Outstanding * |
433 million |
4 million |
429 million |
* |
Diluted shares outstanding can vary as a result of, among other things, the vesting of restricted stock units, the incremental dilutive shares from the convertible notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. In periods when the quarterly average stock price per share exceeds |
|
** |
Special items may include: amortization of acquisition-related intangibles; expensing of appraised inventory fair market value step-up; non-recurring facility costs; in-process research and development expenses; restructuring, asset impairments and other, net; goodwill impairment charges; gains and losses on debt prepayment; actuarial (gains) losses on pension plans and other pension benefits; and certain other special items, as necessary. These special items are out of our control and could change significantly from period to period. As a result, we are not able to reasonably estimate and separately present the individual impact or probable significance of these special items, and we are similarly unable to provide a reconciliation of the non-GAAP measures. The reconciliation that is unavailable would include a forward-looking income statement, balance sheet and statement of cash flows in accordance with GAAP. For this reason, we use a projected range of the aggregate amount of special items in order to calculate our projected non-GAAP operating expense outlook. |
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*** |
We believe these non-GAAP measures provide important supplemental information to investors. We use these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide in our releases, provide a more complete understanding of factors and trends affecting our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names. |
TELECONFERENCE
onsemi will host a conference call for the financial community at 9 a.m. Eastern Time (ET) on July 29, 2024 to discuss this announcement and onsemi’s 2024 second quarter results. 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. 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 by pre-registering here.
About onsemi
onsemi (Nasdaq: ON) is driving disruptive innovations to help build a better future. With a focus on automotive and industrial end-markets, the company is accelerating change in megatrends such as vehicle electrification and safety, sustainable energy grids, industrial automation, and 5G and cloud infrastructure. onsemi offers a highly differentiated and innovative product portfolio, delivering intelligent power and sensing technologies that solve the world’s most complex challenges and leads the way to creating a safer, cleaner, and smarter world. onsemi is recognized as a Fortune 500® company and included in the Nasdaq-100 Index® and S&P 500® index. Learn more about onsemi at www.onsemi.com.
onsemi and the onsemi logo are 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 website in this news release, information on the website is not to be incorporated herein.
This document includes “forward-looking statements,” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this document could be deemed forward-looking statements, particularly statements about the future financial performance of onsemi, including financial guidance for the third quarter of 2024. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “anticipates,” “should” or similar expressions or by discussions of strategy, plans or intentions. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Certain factors that could affect our future results or events are described under Part I, Item 1A “Risk Factors” in the 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 5, 2024 (the “2023 Form 10-K”) and from time to time in our other SEC reports. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information, which speaks only as of the date made, except as may be required by law. Investing in our securities involves a high degree of risk and uncertainty, and you should carefully consider the trends, risks and uncertainties described in this document, our 2023 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
ON SEMICONDUCTOR CORPORATION |
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UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS |
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(in millions, except per share data) |
||||||||||||||||||||
|
Quarters Ended |
|
Six Months Ended |
|||||||||||||||||
|
June 28, 2024 |
|
March 29, 2024 |
|
June 30, 2023 |
|
June 28, 2024 |
|
June 30, 2023 |
|||||||||||
Revenue |
$ |
1,735.2 |
|
|
$ |
1,862.7 |
|
|
$ |
2,094.4 |
|
|
$ |
3,597.9 |
|
|
$ |
4,054.1 |
|
|
Cost of revenue |
|
951.2 |
|
|
|
1,009.1 |
|
|
|
1,101.0 |
|
|
|
1,960.3 |
|
|
|
2,143.2 |
|
|
Gross profit |
|
784.0 |
|
|
|
853.6 |
|
|
|
993.4 |
|
|
|
1,637.6 |
|
|
|
1,910.9 |
|
|
Gross margin |
|
45.2 |
% |
|
|
45.8 |
% |
|
|
47.4 |
% |
|
|
45.5 |
% |
|
|
47.1 |
% |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|||||||||||
Research and development |
|
156.5 |
|
|
|
150.0 |
|
|
|
145.3 |
|
|
|
306.5 |
|
|
|
283.7 |
|
|
Selling and marketing |
|
68.6 |
|
|
|
69.1 |
|
|
|
71.6 |
|
|
|
137.7 |
|
|
|
143.4 |
|
|
General and administrative |
|
85.0 |
|
|
|
95.3 |
|
|
|
87.2 |
|
|
|
180.3 |
|
|
|
163.1 |
|
|
Amortization of acquisition-related intangible assets |
|
12.9 |
|
|
|
12.6 |
|
|
|
12.0 |
|
|
|
25.5 |
|
|
|
27.0 |
|
|
Restructuring, asset impairments and other charges, net |
|
72.5 |
|
|
|
1.4 |
|
|
|
2.6 |
|
|
|
73.9 |
|
|
|
54.1 |
|
|
Total operating expenses |
|
395.5 |
|
|
|
328.4 |
|
|
|
318.7 |
|
|
|
723.9 |
|
|
|
671.3 |
|
|
Operating income |
|
388.5 |
|
|
|
525.2 |
|
|
|
674.7 |
|
|
|
913.7 |
|
|
|
1,239.6 |
|
|
Other income (expense), net: |
|
|
|
|
|
|
|
|
|
|||||||||||
Interest expense |
|
(15.7 |
) |
|
|
(15.6 |
) |
|
|
(16.4 |
) |
|
|
(31.3 |
) |
|
|
(42.8 |
) |
|
Interest income |
|
27.4 |
|
|
|
27.6 |
|
|
|
24.0 |
|
|
|
55.0 |
|
|
|
41.1 |
|
|
Loss on debt prepayment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(13.3 |
) |
|
Gain (loss) on divestiture of business |
|
— |
|
|
|
— |
|
|
|
0.5 |
|
|
|
— |
|
|
|
(0.6 |
) |
|
Other income (expense) |
|
1.9 |
|
|
|
1.0 |
|
|
|
(1.3 |
) |
|
|
2.9 |
|
|
|
3.4 |
|
|
Other income (expense), net |
|
13.6 |
|
|
|
13.0 |
|
|
|
6.8 |
|
|
|
26.6 |
|
|
|
(12.2 |
) |
|
Income before income taxes |
|
402.1 |
|
|
|
538.2 |
|
|
|
681.5 |
|
|
|
940.3 |
|
|
|
1,227.4 |
|
|
Income tax provision |
|
(63.7 |
) |
|
|
(84.5 |
) |
|
|
(104.4 |
) |
|
|
(148.2 |
) |
|
|
(188.1 |
) |
|
Net income |
|
338.4 |
|
|
|
453.7 |
|
|
|
577.1 |
|
|
|
792.1 |
|
|
|
1,039.3 |
|
|
Less: Net income attributable to non-controlling interest |
|
(0.2 |
) |
|
|
(0.7 |
) |
|
|
(0.5 |
) |
|
|
(0.9 |
) |
|
|
(1.0 |
) |
|
Net income attributable to ON Semiconductor Corporation |
$ |
338.2 |
|
|
$ |
453.0 |
|
|
$ |
576.6 |
|
|
$ |
791.2 |
|
|
$ |
1,038.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net income for diluted earnings per share of common stock |
$ |
338.2 |
|
|
$ |
453.0 |
|
|
$ |
577.0 |
|
|
$ |
791.2 |
|
|
$ |
1,039.1 |
|
|
Net income per share of common stock: |
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
$ |
0.79 |
|
|
$ |
1.06 |
|
|
$ |
1.34 |
|
|
$ |
1.85 |
|
|
$ |
2.40 |
|
|
Diluted |
$ |
0.78 |
|
|
$ |
1.04 |
|
|
$ |
1.29 |
|
|
$ |
1.82 |
|
|
$ |
2.32 |
|
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
|
|
|||||||||||
Basic |
|
429.1 |
|
|
|
428.1 |
|
|
|
431.7 |
|
|
|
428.6 |
|
|
|
431.8 |
|
|
Diluted |
|
433.2 |
|
|
|
436.5 |
|
|
|
448.7 |
|
|
|
434.9 |
|
|
|
448.6 |
|
|
ON SEMICONDUCTOR CORPORATION |
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UNAUDITED CONSOLIDATED BALANCE SHEETS |
||||||||||||
(in millions) |
||||||||||||
|
June 28, 2024 |
|
March 29, 2024 |
|
December 31, 2023 |
|||||||
Assets |
|
|
|
|
|
|||||||
Cash and cash equivalents |
$ |
2,231.0 |
|
|
$ |
2,614.4 |
|
|
$ |
2,483.0 |
|
|
Short-term investments |
|
450.0 |
|
|
|
— |
|
|
|
— |
|
|
Receivables, net |
|
887.2 |
|
|
|
873.3 |
|
|
|
935.4 |
|
|
Inventories |
|
2,224.6 |
|
|
|
2,147.1 |
|
|
|
2,111.8 |
|
|
Other current assets |
|
532.2 |
|
|
|
514.1 |
|
|
|
382.1 |
|
|
Total current assets |
|
6,325.0 |
|
|
|
6,148.9 |
|
|
|
5,912.3 |
|
|
Property, plant and equipment, net |
|
4,372.5 |
|
|
|
4,384.3 |
|
|
|
4,401.5 |
|
|
Goodwill |
|
1,577.6 |
|
|
|
1,577.6 |
|
|
|
1,577.6 |
|
|
Intangible assets, net |
|
275.0 |
|
|
|
289.4 |
|
|
|
299.3 |
|
|
Deferred tax assets |
|
679.1 |
|
|
|
648.4 |
|
|
|
600.8 |
|
|
ROU financing lease assets |
|
41.7 |
|
|
|
41.8 |
|
|
|
42.4 |
|
|
Other assets |
|
387.9 |
|
|
|
392.5 |
|
|
|
381.3 |
|
|
Total assets |
$ |
13,658.8 |
|
|
$ |
13,482.9 |
|
|
$ |
13,215.2 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|||||||
Accounts payable |
$ |
617.7 |
|
|
$ |
665.8 |
|
|
$ |
725.6 |
|
|
Accrued expenses and other current liabilities |
|
684.3 |
|
|
|
678.1 |
|
|
|
663.2 |
|
|
Current portion of financing lease liabilities |
|
0.4 |
|
|
|
0.3 |
|
|
|
0.8 |
|
|
Current portion of long-term debt |
|
795.6 |
|
|
|
794.8 |
|
|
|
794.0 |
|
|
Total current liabilities |
|
2,098.0 |
|
|
|
2,139.0 |
|
|
|
2,183.6 |
|
|
Long-term debt |
|
2,545.7 |
|
|
|
2,544.1 |
|
|
|
2,542.6 |
|
|
Deferred tax liabilities |
|
39.6 |
|
|
|
37.3 |
|
|
|
38.7 |
|
|
Long-term financing lease liabilities |
|
21.7 |
|
|
|
21.3 |
|
|
|
22.4 |
|
|
Other long-term liabilities |
|
595.4 |
|
|
|
598.6 |
|
|
|
627.3 |
|
|
Total liabilities |
|
5,300.4 |
|
|
|
5,340.3 |
|
|
|
5,414.6 |
|
|
ON Semiconductor Corporation stockholders’ equity: |
|
|
|
|
|
|||||||
Common stock |
|
6.2 |
|
|
|
6.2 |
|
|
|
6.2 |
|
|
Additional paid-in capital |
|
5,283.3 |
|
|
|
5,243.9 |
|
|
|
5,210.9 |
|
|
Accumulated other comprehensive loss |
|
(56.8 |
) |
|
|
(52.2 |
) |
|
|
(45.2 |
) |
|
Accumulated earnings |
|
7,339.3 |
|
|
|
7,001.1 |
|
|
|
6,548.1 |
|
|
Less: Treasury stock, at cost |
|
(4,232.5 |
) |
|
|
(4,075.1 |
) |
|
|
(3,937.4 |
) |
|
Total ON Semiconductor Corporation stockholders’ equity |
|
8,339.5 |
|
|
|
8,123.9 |
|
|
|
7,782.6 |
|
|
Non-controlling interest |
|
18.9 |
|
|
|
18.7 |
|
|
|
18.0 |
|
|
Total stockholders’ equity |
|
8,358.4 |
|
|
|
8,142.6 |
|
|
|
7,800.6 |
|
|
Total liabilities and stockholders’ equity |
$ |
13,658.8 |
|
|
$ |
13,482.9 |
|
|
$ |
13,215.2 |
|
|
ON SEMICONDUCTOR CORPORATION |
|||||||||||||||
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||||||||
(in millions) |
|||||||||||||||
|
Quarters Ended |
|
Six Months Ended |
||||||||||||
|
June 28,
|
|
March 29,
|
|
June 30,
|
|
June 28,
|
|
June 30,
|
||||||
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
|
||||||
Net income |
$ |
338.4 |
|
$ |
453.7 |
|
$ |
577.1 |
|
$ |
792.1 |
|
$ |
1,039.3 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization |
|
159.6 |
|
|
154.9 |
|
|
148.8 |
|
|
314.5 |
|
|
293.8 |
|
Loss on sale and disposal of fixed assets |
|
0.9 |
|
|
0.1 |
|
|
3.6 |
|
|
1.0 |
|
|
4.8 |
|
(Gain) loss on divestiture of businesses |
|
— |
|
|
— |
|
|
(0.5) |
|
|
— |
|
|
0.6 |
|
Loss on debt prepayment |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
13.3 |
|
Amortization of debt discount and issuance costs |
|
2.9 |
|
|
2.7 |
|
|
2.9 |
|
|
5.6 |
|
|
5.8 |
|
Share-based compensation |
|
32.3 |
|
|
33.0 |
|
|
31.6 |
|
|
65.3 |
|
|
59.3 |
|
Non-cash asset impairment charges |
|
15.7 |
|
|
— |
|
|
— |
|
|
15.7 |
|
|
12.7 |
|
Change in deferred tax balances |
|
(27.9) |
|
|
(48.6) |
|
|
(28.1) |
|
|
(76.5) |
|
|
(29.6) |
|
Other |
|
3.5 |
|
|
1.8 |
|
|
(2.3) |
|
|
5.3 |
|
|
(9.3) |
|
Changes in assets and liabilities |
|
(163.2) |
|
|
(98.9) |
|
|
(342.3) |
|
|
(262.1) |
|
|
(591.0) |
|
Net cash provided by operating activities |
|
362.2 |
|
|
498.7 |
|
|
390.8 |
|
|
860.9 |
|
|
799.7 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
|
||||||
Purchase of Property, Plant and Equipment (“PP&E”) |
|
(154.5) |
|
|
(222.4) |
|
|
(430.6) |
|
|
(376.9) |
|
|
(752.1) |
|
Deposits and proceeds from sale of PP&E |
|
0.2 |
|
|
0.1 |
|
|
0.9 |
|
|
0.3 |
|
|
2.6 |
|
Deposits utilized (made) for purchase of PP&E |
|
13.4 |
|
|
(11.5) |
|
|
36.2 |
|
|
1.9 |
|
|
19.5 |
|
Proceeds from sale or maturity of available-for-sale securities |
|
— |
|
|
— |
|
|
10.0 |
|
|
— |
|
|
20.8 |
|
Purchase of short-term investments |
|
(450.0) |
|
|
— |
|
|
— |
|
|
(450.0) |
|
|
— |
|
Payments related to acquisition of business |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(236.3) |
|
Other |
|
— |
|
|
(1.5) |
|
|
— |
|
|
(1.5) |
|
|
— |
|
Net cash used in investing activities |
|
(590.9) |
|
|
(235.3) |
|
|
(383.5) |
|
|
(826.2) |
|
|
(945.5) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
|
||||||
Proceeds for the issuance of common stock under the ESPP |
|
5.5 |
|
|
7.6 |
|
|
5.9 |
|
|
13.1 |
|
|
13.2 |
|
Payment of tax withholding for RSUs |
|
(7.7) |
|
|
(37.5) |
|
|
(8.9) |
|
|
(45.2) |
|
|
(56.5) |
|
Repurchase of common stock |
|
(150.0) |
|
|
(100.0) |
|
|
(60.1) |
|
|
(250.0) |
|
|
(164.1) |
|
Issuance and borrowings under debt agreements |
|
— |
|
|
— |
|
|
375.0 |
|
|
— |
|
|
1,845.0 |
|
Reimbursement of debt issuance costs |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
4.5 |
|
Payment of debt issuance and other financing costs |
|
— |
|
|
— |
|
|
(6.5) |
|
|
— |
|
|
(11.3) |
|
Repayment of borrowings under debt agreements |
|
— |
|
|
— |
|
|
(390.0) |
|
|
— |
|
|
(1,603.7) |
|
Payment for purchase of bond hedges |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
(414.0) |
|
Proceeds from issuance of warrants |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
242.5 |
|
Payment of finance lease obligations |
|
(0.5) |
|
|
(0.9) |
|
|
(5.0) |
|
|
(1.4) |
|
|
(8.6) |
|
Net cash used in financing activities |
|
(152.7) |
|
|
(130.8) |
|
|
(89.6) |
|
|
(283.5) |
|
|
(153.0) |
|
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
(2.2) |
|
|
(0.9) |
|
|
(1.1) |
|
|
(3.1) |
|
|
(1.0) |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
(383.6) |
|
|
131.7 |
|
|
(83.4) |
|
|
(251.9) |
|
|
(299.8) |
|
Beginning cash, cash equivalents and restricted cash |
|
2,616.7 |
|
|
2,485.0 |
|
|
2,716.6 |
|
|
2,485.0 |
|
|
2,933.0 |
|
Ending cash, cash equivalents and restricted cash |
$ |
2,233.1 |
|
$ |
2,616.7 |
|
$ |
2,633.2 |
|
$ |
2,233.1 |
|
$ |
2,633.2 |
|
ON SEMICONDUCTOR CORPORATION |
|||||||||||||||||||||
RECONCILIATION OF GAAP VERSUS NON-GAAP DISCLOSURES (Continued) |
|||||||||||||||||||||
(in millions, except per share and percentage data) |
|||||||||||||||||||||
|
|
Quarters Ended |
|
Six Months Ended |
|||||||||||||||||
|
|
June 28,
|
|
March 29,
|
|
June 30,
|
|
June 28,
|
|
June 30,
|
|||||||||||
Reconciliation of GAAP to non-GAAP gross profit: |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP gross profit |
$ |
784.0 |
|
|
$ |
853.6 |
|
|
$ |
993.4 |
|
|
$ |
1,637.6 |
|
|
$ |
1,910.9 |
|
||
Special items: |
|
|
|
|
|
|
|
|
|
||||||||||||
a) |
Impact of business wind down |
|
— |
|
|
|
— |
|
|
|
(1.8 |
) |
|
|
— |
|
|
|
(3.9 |
) |
|
b) |
Amortization of acquisition-related intangible assets |
|
1.6 |
|
|
|
1.5 |
|
|
|
1.4 |
|
|
|
3.1 |
|
|
|
2.8 |
|
|
|
Total special items |
|
1.6 |
|
|
|
1.5 |
|
|
|
(0.4 |
) |
|
|
3.1 |
|
|
|
(1.1 |
) |
|
Non-GAAP gross profit |
$ |
785.6 |
|
|
$ |
855.1 |
|
|
$ |
993.0 |
|
|
$ |
1,640.7 |
|
|
$ |
1,909.8 |
|
||
Reconciliation of GAAP to non-GAAP gross margin: |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP gross margin |
|
45.2 |
% |
|
|
45.8 |
% |
|
|
47.4 |
% |
|
|
45.5 |
% |
|
|
47.1 |
% |
||
Special items: |
|
|
|
|
|
|
|
|
|
||||||||||||
a) |
Impact of business wind down |
|
— |
% |
|
|
— |
% |
|
|
(0.1 |
)% |
|
|
— |
% |
|
|
(0.1 |
)% |
|
b) |
Amortization of acquisition-related intangible assets |
|
0.1 |
% |
|
|
0.1 |
% |
|
|
0.1 |
% |
|
|
0.1 |
% |
|
|
0.1 |
% |
|
|
Total special items |
|
0.1 |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
|
0.1 |
% |
|
|
— |
% |
|
Non-GAAP gross margin |
|
45.3 |
% |
|
|
45.9 |
% |
|
|
47.4 |
% |
|
|
45.6 |
% |
|
|
47.1 |
% |
||
Reconciliation of GAAP to non-GAAP operating expenses: |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP operating expenses |
$ |
395.5 |
|
|
$ |
328.4 |
|
|
$ |
318.7 |
|
|
$ |
723.9 |
|
|
$ |
671.3 |
|
||
Special items: |
|
|
|
|
|
|
|
|
|
||||||||||||
a) |
Amortization of acquisition-related intangible assets |
|
(12.9 |
) |
|
|
(12.6 |
) |
|
|
(12.0 |
) |
|
|
(25.5 |
) |
|
|
(27.0 |
) |
|
b) |
Restructuring, asset impairments and other, net |
|
(72.5 |
) |
|
|
(1.4 |
) |
|
|
(2.6 |
) |
|
|
(73.9 |
) |
|
|
(54.1 |
) |
|
c) |
Third party acquisition and divestiture-related costs |
|
(1.7 |
) |
|
|
(0.1 |
) |
|
|
1.4 |
|
|
|
(1.8 |
) |
|
|
1.3 |
|
|
|
Total special items |
|
(87.1 |
) |
|
|
(14.1 |
) |
|
|
(13.2 |
) |
|
|
(101.2 |
) |
|
|
(79.8 |
) |
|
Non-GAAP operating expenses |
$ |
308.4 |
|
|
$ |
314.3 |
|
|
$ |
305.5 |
|
|
$ |
622.7 |
|
|
$ |
591.5 |
|
||
Reconciliation of GAAP to non-GAAP operating income: |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP operating income |
$ |
388.5 |
|
|
$ |
525.2 |
|
|
$ |
674.7 |
|
|
$ |
913.7 |
|
|
$ |
1,239.6 |
|
||
Special items: |
|
|
|
|
|
|
|
|
|
||||||||||||
a) |
Impact of business wind down |
|
— |
|
|
|
— |
|
|
|
(1.8 |
) |
|
|
— |
|
|
|
(3.9 |
) |
|
b) |
Amortization of acquisition-related intangible assets |
|
14.5 |
|
|
|
14.1 |
|
|
|
13.4 |
|
|
|
28.6 |
|
|
|
29.8 |
|
|
c) |
Restructuring, asset impairments and other, net |
|
72.5 |
|
|
|
1.4 |
|
|
|
2.6 |
|
|
|
73.9 |
|
|
|
54.1 |
|
|
d) |
Third party acquisition and divestiture-related costs |
|
1.7 |
|
|
|
0.1 |
|
|
|
(1.4 |
) |
|
|
1.8 |
|
|
|
(1.3 |
) |
|
|
Total special items |
|
88.7 |
|
|
|
15.6 |
|
|
|
12.8 |
|
|
|
104.3 |
|
|
|
78.7 |
|
|
Non-GAAP operating income |
$ |
477.2 |
|
|
$ |
540.8 |
|
|
$ |
687.5 |
|
|
$ |
1,018.0 |
|
|
$ |
1,318.3 |
|
||
Reconciliation of GAAP to non-GAAP operating margin (operating income / revenue): |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP operating margin |
|
22.4 |
% |
|
|
28.2 |
% |
|
|
32.2 |
% |
|
|
25.4 |
% |
|
|
30.6 |
% |
||
Special items: |
|
|
|
|
|
|
|
|
|
||||||||||||
a) |
Impact of business wind down |
|
— |
% |
|
|
— |
% |
|
|
(0.1 |
)% |
|
|
— |
% |
|
|
(0.1 |
)% |
|
b) |
Amortization of acquisition-related intangible assets |
|
0.8 |
% |
|
|
0.8 |
% |
|
|
0.6 |
% |
|
|
0.8 |
% |
|
|
0.7 |
% |
|
c) |
Restructuring, asset impairments and other, net |
|
4.2 |
% |
|
|
0.1 |
% |
|
|
0.1 |
% |
|
|
2.1 |
% |
|
|
1.3 |
% |
|
d) |
Third party acquisition and divestiture-related costs |
|
0.1 |
% |
|
|
— |
% |
|
|
(0.1 |
)% |
|
|
0.1 |
% |
|
|
— |
% |
|
|
Total special items |
|
5.1 |
% |
|
|
0.8 |
% |
|
|
0.6 |
% |
|
|
2.9 |
% |
|
|
1.9 |
% |
|
Non-GAAP operating margin |
|
27.5 |
% |
|
|
29.0 |
% |
|
|
32.8 |
% |
|
|
28.3 |
% |
|
|
32.5 |
% |
||
Reconciliation of GAAP to non-GAAP income before income taxes: |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP income before income taxes |
$ |
402.1 |
|
|
$ |
538.2 |
|
|
$ |
681.5 |
|
|
$ |
940.3 |
|
|
$ |
1,227.4 |
|
||
Special items: |
|
|
|
|
|
|
|
|
|
||||||||||||
a) |
Impact of business wind down |
|
— |
|
|
|
— |
|
|
|
(1.8 |
) |
|
|
— |
|
|
|
(3.9 |
) |
|
b) |
Amortization of acquisition-related intangible assets |
|
14.5 |
|
|
|
14.1 |
|
|
|
13.4 |
|
|
|
28.6 |
|
|
|
29.8 |
|
|
c) |
Restructuring, asset impairments and other, net |
|
72.5 |
|
|
|
1.4 |
|
|
|
2.6 |
|
|
|
73.9 |
|
|
|
54.1 |
|
|
d) |
Third party acquisition and divestiture-related costs |
|
1.7 |
|
|
|
0.1 |
|
|
|
(1.4 |
) |
|
|
1.8 |
|
|
|
(1.3 |
) |
|
e) |
Loss on debt prepayment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13.3 |
|
|
f) |
Loss on divestiture of business |
|
— |
|
|
|
— |
|
|
|
(0.5 |
) |
|
|
— |
|
|
|
0.6 |
|
|
|
Total special items |
|
88.7 |
|
|
|
15.6 |
|
|
|
12.3 |
|
|
|
104.3 |
|
|
|
92.6 |
|
|
Non-GAAP income before income taxes |
$ |
490.8 |
|
|
$ |
553.8 |
|
|
$ |
693.8 |
|
|
$ |
1,044.6 |
|
|
$ |
1,320.0 |
|
||
Reconciliation of GAAP to non-GAAP net income attributable to ON Semiconductor Corporation: |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP net income attributable to ON Semiconductor Corporation |
$ |
338.2 |
|
|
$ |
453.0 |
|
|
$ |
576.6 |
|
|
$ |
791.2 |
|
|
$ |
1,038.3 |
|
||
Special items: |
|
|
|
|
|
|
|
|
|
||||||||||||
a) |
Impact of business wind down |
|
— |
|
|
|
— |
|
|
|
(1.8 |
) |
|
|
— |
|
|
|
(3.9 |
) |
|
b) |
Amortization of acquisition-related intangible assets |
|
14.5 |
|
|
|
14.1 |
|
|
|
13.4 |
|
|
|
28.6 |
|
|
|
29.8 |
|
|
c) |
Restructuring, asset impairments and other, net |
|
72.5 |
|
|
|
1.4 |
|
|
|
2.6 |
|
|
|
73.9 |
|
|
|
54.1 |
|
|
d) |
Third party acquisition and divestiture-related costs |
|
1.7 |
|
|
|
0.1 |
|
|
|
(1.4 |
) |
|
|
1.8 |
|
|
|
(1.3 |
) |
|
e) |
Loss on debt prepayment |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
13.3 |
|
|
f) |
Loss on divestiture of a business |
|
— |
|
|
|
— |
|
|
|
(0.5 |
) |
|
|
— |
|
|
|
0.6 |
|
|
g) |
Income taxes |
|
(14.8 |
) |
|
|
(4.1 |
) |
|
|
(5.6 |
) |
|
|
(18.9 |
) |
|
|
(23.9 |
) |
|
|
Total special items |
|
73.9 |
|
|
|
11.5 |
|
|
|
6.7 |
|
|
|
85.4 |
|
|
|
68.7 |
|
|
Non-GAAP net income attributable to ON Semiconductor Corporation |
$ |
412.1 |
|
|
$ |
464.5 |
|
|
$ |
583.3 |
|
|
$ |
876.6 |
|
|
$ |
1,107.0 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
GAAP net income for diluted earnings per share |
$ |
338.2 |
|
|
$ |
453.0 |
|
|
$ |
577.0 |
|
|
$ |
791.2 |
|
|
$ |
1,039.1 |
|
||
Non-GAAP net income for diluted earnings per share |
$ |
412.1 |
|
|
$ |
464.5 |
|
|
$ |
583.7 |
|
|
$ |
876.6 |
|
|
$ |
1,107.8 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Reconciliation of GAAP to non-GAAP diluted shares outstanding: |
|
|
|
|
|
|
|
|
|
||||||||||||
GAAP diluted shares outstanding |
|
433.2 |
|
|
|
436.5 |
|
|
|
448.7 |
|
|
|
434.9 |
|
|
|
448.6 |
|
||
Special items: |
|
|
|
|
|
|
|
|
|
||||||||||||
a) |
Less: dilutive shares attributable to convertible notes |
|
(3.7 |
) |
|
|
(4.7 |
) |
|
|
(10.0 |
) |
|
|
(4.2 |
) |
|
|
(9.7 |
) |
|
|
Total special items |
|
(3.7 |
) |
|
|
(4.7 |
) |
|
|
(10.0 |
) |
|
|
(4.2 |
) |
|
|
(9.7 |
) |
|
Non-GAAP diluted shares outstanding |
|
429.5 |
|
|
|
431.8 |
|
|
|
438.7 |
|
|
|
430.7 |
|
|
|
438.9 |
|
||
Non-GAAP diluted earnings per share: |
|
|
|
|
|
|
|
|
|
||||||||||||
Non-GAAP net income for diluted earnings per share |
$ |
412.1 |
|
|
$ |
464.5 |
|
|
$ |
583.7 |
|
|
$ |
876.6 |
|
|
$ |
1,107.8 |
|
||
Non-GAAP diluted shares outstanding |
|
429.5 |
|
|
|
431.8 |
|
|
|
438.7 |
|
|
|
430.7 |
|
|
|
438.9 |
|
||
Non-GAAP diluted earnings per share |
$ |
0.96 |
|
|
$ |
1.08 |
|
|
$ |
1.33 |
|
|
$ |
2.04 |
|
|
$ |
2.52 |
|
||
Reconciliation of net cash provided by operating activities to free cash flow: |
|
|
|
|
|
|
|
|
|
||||||||||||
Net cash provided by operating activities |
$ |
362.2 |
|
|
$ |
498.7 |
|
|
$ |
390.8 |
|
|
$ |
860.9 |
|
|
$ |
799.7 |
|
||
Special items: |
|
|
|
|
|
|
|
|
|
||||||||||||
a) |
Purchase of property, plant and equipment |
|
(154.5 |
) |
|
|
(222.4 |
) |
|
|
(430.6 |
) |
|
|
(376.9 |
) |
|
|
(752.1 |
) |
|
|
Total special items |
|
(154.5 |
) |
|
|
(222.4 |
) |
|
|
(430.6 |
) |
|
|
(376.9 |
) |
|
|
(752.1 |
) |
|
Free cash flow |
$ |
207.7 |
|
|
$ |
276.3 |
|
|
$ |
(39.8 |
) |
|
$ |
484.0 |
|
|
$ |
47.6 |
|
||
Certain of the amounts in the above tables may not total due to rounding of individual amounts. |
|||||||||||||||||||||
|
Quarters Ended |
|
|
||||||||||||
|
September 29,
|
|
December 31,
|
|
March 29,
|
|
June 28,
|
|
Last Twelve
|
||||||
Net cash provided by operating activities |
$ |
566.6 |
|
$ |
611.2 |
|
$ |
498.7 |
|
$ |
362.2 |
|
$ |
2,038.7 |
|
Purchase of property, plant and equipment |
|
(433.0) |
|
|
(390.5) |
|
|
(222.4) |
|
|
(154.5) |
|
|
(1,200.4) |
|
Free cash flow |
$ |
133.6 |
|
$ |
220.7 |
|
$ |
276.3 |
|
$ |
207.7 |
|
$ |
838.3 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Revenue |
$ |
2,180.8 |
|
$ |
2,018.1 |
|
$ |
1,862.7 |
|
$ |
1,735.2 |
|
$ |
7,796.8 |
|
SHARE-BASED COMPENSATION
Total share-based compensation related to restricted stock units, stock grant awards and the employee stock purchase plan was as follows:
|
Quarters Ended |
|
Six Months Ended |
||||||||||||
|
June 28,
|
|
March 29,
|
|
June 30,
|
|
June 28,
|
|
June 30,
|
||||||
Cost of revenue |
$ |
6.5 |
|
$ |
5.4 |
|
$ |
4.9 |
|
$ |
11.9 |
|
$ |
8.6 |
|
Research and development |
|
6.4 |
|
|
5.7 |
|
|
5.2 |
|
|
12.1 |
|
|
9.7 |
|
Selling and marketing |
|
5.4 |
|
|
5.2 |
|
|
5.0 |
|
|
10.6 |
|
|
9.1 |
|
General and administrative |
|
14.0 |
|
|
16.7 |
|
|
16.5 |
|
|
30.7 |
|
|
31.9 |
|
Total share-based compensation |
$ |
32.3 |
|
$ |
33.0 |
|
$ |
31.6 |
|
$ |
65.3 |
|
$ |
59.3 |
|
SUPPLEMENTAL FINANCIAL DATA
|
Quarters Ended |
|
Six Months Ended |
||||||||||||
|
June 28,
|
|
March 29,
|
|
June 30,
|
|
June 28,
|
|
June 30,
|
||||||
Net cash provided by operating activities |
$ |
362.2 |
|
$ |
498.7 |
|
$ |
390.8 |
|
$ |
860.9 |
|
$ |
799.7 |
|
Free cash flow |
$ |
207.7 |
|
$ |
276.3 |
|
$ |
(39.8) |
|
$ |
484.0 |
|
$ |
47.6 |
|
Cash paid for income taxes |
$ |
221.3 |
|
$ |
23.6 |
|
$ |
192.5 |
|
$ |
244.9 |
|
$ |
227.6 |
|
|
|
|
|
|
|
|
|
|
|
||||||
Depreciation and amortization |
$ |
159.6 |
|
$ |
154.9 |
|
$ |
148.8 |
|
$ |
314.5 |
|
$ |
293.8 |
|
Less: Amortization of acquisition-related intangible assets |
|
14.5 |
|
|
14.1 |
|
|
13.4 |
|
|
28.6 |
|
|
29.8 |
|
Depreciation and amortization (excl. amortization of acquisition-related intangible assets) |
$ |
145.1 |
|
$ |
140.8 |
|
$ |
135.4 |
|
$ |
285.9 |
|
$ |
264.0 |
|
NON-GAAP MEASURES
To supplement the consolidated financial results prepared in accordance with GAAP, onsemi uses certain non-GAAP measures, which are adjusted from the most directly comparable GAAP measures to exclude items related to the amortization of acquisition-related intangibles, expensing of appraised inventory fair market value step-up, inventory valuation adjustments, in-process research and development expenses, restructuring, asset impairments and other, net, goodwill impairment charges, gains and losses on debt prepayment, non-cash interest expense, actuarial (gains) losses on pension plans and other pension benefits, third party acquisition and divestiture-related costs, tax impact of these items and certain other non-recurring items, as necessary. Management does not consider the effects of these items in evaluating the core operational activities of onsemi. Management uses these non-GAAP measures internally to make strategic decisions, forecast future results and evaluate onsemi’s current performance. In addition, the Company believes that most analysts covering onsemi use the non-GAAP measures to evaluate onsemi’s performance. Given management’s and other relevant parties’ use of these non-GAAP measures, onsemi believes these measures are important to investors in understanding onsemi’s current and future operating results as seen through the eyes of management. In addition, management believes these non-GAAP measures are useful to investors in enabling them to better assess changes in onsemi’s core business across different time periods. These non-GAAP measures are not prepared in accordance with, and should not be considered alternatives or necessarily superior to, GAAP financial data and may be different from non-GAAP measures used by other companies. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names.
Non-GAAP Revenue
The use of non-GAAP revenue allows management to evaluate, among other things, the revenue from the Company’s core businesses and trends across different reporting periods on a consistent basis, independent of special items. In addition, non- GAAP revenue is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate the Company’s revenue generation performance relative to the direct costs of operations of onsemi’s core businesses.
Non-GAAP Gross Profit and Gross Margin
The use of non-GAAP gross profit and gross margin allows management to evaluate, among other things, the gross margin and gross profit of the Company’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash items including, generally speaking, expensing of appraised inventory fair market value step-up, impact of business wind down and non-recurring facility costs. In addition, it is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our operating performance independent of certain non-cash items and the effects of certain variables unrelated to our overall operating performance.
Non-GAAP Operating Income and Operating Margin
The use of non-GAAP operating income and operating margin allows management to evaluate, among other things, the operating margin and operating income of the Company’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash items including, generally speaking, expensing of appraised inventory fair market value step-up, impact of business wind down, non-recurring facility costs, amortization and impairments of intangible assets, third party acquisition and divestiture-related costs, restructuring charges and certain other special items as necessary. In addition, it is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our operating performance independent of certain non-cash items and the effects of certain variables unrelated to our overall operating performance.
Non-GAAP Net Income Attributable to ON Semiconductor Corporation and Non-GAAP Diluted Earnings Per Share
The use of non-GAAP net income attributable to onsemi and non-GAAP diluted earnings per share allows management to evaluate the operating results of onsemi’s core businesses and trends across different reporting periods on a consistent basis, independent of non-cash items including, generally, the amortization and impairments of intangible assets, expensing of appraised inventory fair market value step-up, impact of business wind down, non-recurring facility costs, restructuring, gains and losses on debt prepayment, actuarial (gains) losses on pension plans and other pension benefits, third party acquisition and divestiture-related costs, discrete tax items and other non-GAAP tax adjustments and certain other special items, as necessary. In addition, these measures are important components of management’s internal performance measurement and incentive and reward process, as they are used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, setting targets and forecasting future results. For our non-GAAP reporting, we are utilizing a projected and normalized non-GAAP effective tax rate of
Free Cash Flow
The use of free cash flow allows management to evaluate, among other things, the ability of the Company to make interest or principal payments on its debt. Free cash flow is defined as the difference between cash flow from operating activities and capital expenditures disclosed under investing activities in the consolidated statement of cash flows. Free cash flow is not an alternative to cash flow from operating activities as a measure of liquidity. It is an important component of management’s internal performance measurement and incentive and reward process as it is used to assess the current and historical financial results of the business and for strategic decision making, preparing budgets, obtaining targets and forecasting future results. Management presents this non-GAAP financial measure to enable investors and analysts to evaluate our financial performance independent of the cash capital expenditures.
Non-GAAP Diluted Share Count
The use of non-GAAP diluted share count allows management to evaluate, among other things, the potential dilution due to the outstanding restricted stock units excluding the dilution from the convertible notes that is covered by hedging activity up to a certain threshold. In periods when the quarterly average stock price per share exceeds
View source version on businesswire.com: https://www.businesswire.com/news/home/20240729426386/en/
Krystal Heaton
Director, Head of Public Relations
onsemi
(480) 242-6943
Krystal.Heaton@onsemi.com
Parag Agarwal
Vice President - Investor Relations & Corporate Development
onsemi
(602) 244-3437
investor@onsemi.com
Source: onsemi
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