August 3, 2012 – BUSINESS WIRE — ON Semiconductor Corporation (Nasdaq:ONNN) will be looking for a new chief financial officer (CFO), with Donald Colvin, EVP and CFO, vacating the post within 90 days.
Colvin led ONNN’s finance department through growth and numerous acquisitions, said Keith Jackson, ONNN CEO. ON Semi ranked #23 in analyst firm IC Insights’ top-25 semiconductor companies of 2011, a jump from #31 the previous year, thanks in part to its buy of Sanyo’s semiconductor business.
ON Semiconductor’s Q2 results were basically flat over Q1, and its average selling prices (ASPs) for semiconductor chips declined 1%. Activity slowed in June, Jackson said, and expects conservative chip buying in July as well. For the second quarter of 2012, ONNN reported total revenues of $744.8 million, GAAP gross margin of 34.7%, non-GAAP gross margin of 35.7%, GAAP net income per fully diluted share of $0.02 (non-GAAP $0.14), and the chipmaker retired $96.2 million of Zero Coupon Convertible Senior Subordinated Notes. Q2 GAAP net income was impacted by $58.1 million of special items. ONNN expects Q3 to be about flat again, which analysts at FBR Capital Markets call a “conservative” guidance.
“As a result of the slower growth environment, we have begun taking actions to reduce our overall cost structure,” Jackson said. “For example, during the second quarter of 2012, we executed a cost reduction program within our SANYO Semiconductor Products Group that resulted in a headcount reduction of approximately 10 percent of that division. In addition, we are currently finalizing a cost reduction plan for the legacy ON Semiconductor business to align our expenses and capital investments to the slower growth environment.”
The chipmaker is also running its first-ever share repurchase program for up to $300 million of common stock during the next three years. This could retire 7-10% of ONNN’s outstanding shares, noted analysts at FBR Capital Markets, which also noted that ONNN is “adept at restructuring activities,” and should not lose sight of its goals with Colvin’s departure.
ON Semiconductor (Nasdaq: ONNN) supplies high-performance silicon offerings for energy-efficient electronics, with power and signal management, logic, discrete and custom devices. For more information, visit http://www.onsemi.com.