ON Semiconductor Corp. today announced that total revenues in the third quarter of 2013 were $715.4 million, up approximately four percent compared to the second quarter of 2013. Revenue in the year-ago quarter was $725.5 million.
During the third quarter of 2013, the company reported GAAP net income of $51.8 million, or $0.11 per diluted share. The third quarter 2013 GAAP net income was impacted by approximately $23.6 million of special items.
Third quarter 2013 non-GAAP net income was $75.4 million, or $0.17 per diluted share, compared to $57.2 million, or $0.13 per diluted share, for the second quarter of 2013. A reconciliation of these non-GAAP financial measures (and other non-GAAP measures used elsewhere in this release, such as non-GAAP gross margin and adjusted EBITDA) to the company's most directly comparable measures prepared in accordance with U.S. GAAP are set forth in the attached schedules and on our website at http://www.onsemi.com. Additionally, revenue by end market, region, distribution channel and business unit can be found on the "Investors" section of our website.
On a mix-adjusted basis, average selling prices for ON Semiconductor in the third quarter of 2013 were down approximately one percent when compared to the second quarter of 2013. Total company GAAP gross margin in the third quarter was 34.8 percent. Non-GAAP gross margin in the third quarter was 34.8 percent.
Adjusted EBITDA for the third quarter of 2013 was $128.8 million. Adjusted EBITDA for the second quarter of 2013 was $112.4 million.
"The demand environment has been choppy and demand trends have lagged the typical seasonality in our industry,” said Keith Jackson, president and CEO of ON Semiconductor. “Despite a sub-optimal demand environment, our core business remains strong with a robust design win pipeline in our target growth areas of automobiles, smartphones, white goods and select segments of the industrial market.
"At the same time, the headwind to our results from the SANYO Semiconductor Products Group continues to abate as our efforts in stabilizing revenue and optimizing cost structure of the business are beginning to show definitive results. With the measures we recently announced, we believe that we now have a clear line of sight to sustained profitability for our SANYO Semiconductor business from 2014 onwards."
FOURTH QUARTER 2013 OUTLOOK
“Based upon product booking trends, backlog levels and estimated turns levels, we anticipate that total ON Semiconductor revenues will be approximately $675 to $705 million in the fourth quarter of 2013,” Jackson said. “Backlog levels for the fourth quarter of 2013 represent approximately 80 to 85 percent of our anticipated fourth quarter 2013 revenues. Average selling prices for the fourth quarter of 2013 are expected to be down approximately one percent when compared to the third quarter of 2013. The outlook for the fourth quarter of 2013 includes stock-based compensation expense of approximately $7 to $9 million.”