ON Semiconductor Reports Fourth Quarter and Full Year 2019 Results

ON Semiconductor Corporation (NASDAQ: ON) announced on February 3, 2019 that its total revenue for the fourth quarter of 2019 was US$1,401.8 million, a decrease of approximately 7% from the same quarter of last year. Revenue for the fourth quarter of 2019 increased by approximately 1% compared to the third quarter of 2019.

“Our 2019 results validate the transformational nature of our business, and we expect to outperform most of our peers amid a challenging macroeconomic and geopolitical environment,” said Keith Jackson, president and CEO of ON Semiconductor. “We believe our strong competitive position in the automotive, industrial and cloud power semiconductor end markets and our alignment with secular trends in these markets remain key drivers of our superior performance. In addition to our strong top-line performance, we are taking substantial steps to expand margins by making structural changes to our manufacturing operations and accelerating our 300mm fab ramp-up schedule.”

 “In the fourth quarter, we saw a slight improvement in business trends, which continued into the first quarter of 2020. With the improvement of macroeconomic and geopolitical conditions, ON Semiconductor is well positioned to achieve strong short- to medium-term results with its strong product lineup, investment in the most attractive semiconductor end markets, and continued improvement in its cost structure.”

Outlook for the first quarter of 2020

Based on current product order trends, backlog levels and estimated turnover levels, the Company expects total revenue for the first quarter of 2020 to be approximately $1,355 million to $1,405 million.

GAAP and non-GAAP gross margins for the first quarter of 2020 are expected to be between 33.7% and 34.7%.

The first quarter 2020 outlook includes an expected expense for stock-based compensation of approximately $19 million to $21 million and an expected net cash payment for income taxes of $14 million to $18 million.

The following table summarizes ON Semiconductor's GAAP and non-GAAP outlook for the first quarter of 2020.