onsemi Third Quarter 2023 Results Exceed Expectations
Achieves record revenue in automotive and industrial end markets
SCOTTSDALE, Ariz.----October 30, 2023--
onsemi (the “Company”) (Nasdaq: ON) today announced results for the third quarter of 2023 with the following highlights:
-- Revenue of $2,180.8 million; GAAP and non-GAAP gross margin of 47.3%
-- GAAP operating margin and non-GAAP operating margin of 31.5% and 32.6%,
respectively
-- GAAP diluted earnings per share and non-GAAP diluted earnings per share
of $1.29 and $1.39, respectively
-- Record automotive revenue of $1.2 billion, and increased 33%
year-over-year
-- Record industrial revenue of $616 million, up slightly year-over-year
“Our disciplined approach and execution resulted in another solid quarter, demonstrating the resilience in our business amid market softness,” said Hassane El-Khoury, president and chief executive officer of onsemi. “We continue to drive structural improvements and efficiencies, most notably in our silicon carbide operation, with the completed expansion of the world’s largest, state-of-the-art silicon carbide fab in South Korea for 150- and 200-millimeter wafers.”
Selected financial results for the quarter are shown below with comparable
periods (unaudited):
GAAP Non-GAAP
---------------------------- ----------------------------
(Revenue and Net
Income in
millions) Q3 2023 Q2 2023 Q3 2022 Q3 2023 Q2 2023 Q3 2022
-------- -------- -------- -------- -------- --------
Revenue $2,180.8 $2,094.4 $2,192.6 $2,180.8 $2,094.4 $2,192.6
Gross Margin 47.3 % 47.4 % 48.3 % 47.3 % 47.4 % 49.3 %
Operating Margin 31.5 % 32.2 % 19.4 % 32.6 % 32.8 % 35.4 %
Net Income
attributable to
ON Semiconductor
Corporation $582.7 $576.6 $311.9 $608.4 $583.3 $639.4
Diluted Earnings
Per Share $1.29 $1.29 $0.70 $1.39 $1.33 $1.45
Revenue Summary
(in millions)
(Unaudited)
Three Months Ended
---------------------------- ------------ --------------
Business Sequential Year-over-
Segment Q3 2023 Q2 2023 Q3 2022 Change Year Change
---------- -------- -------- -------- ------------ --------------
PSG $1,230.6 $1,119.8 $1,116.1 10% 10%
ASG 621.6 649.5 734.3 (4)% (15)%
ISG 328.6 325.1 342.2 1% (4)%
------- ------- ------- ----- ---- --------
Total $2,180.8 $2,094.4 $2,192.6 4% (1)%
------- ------- ------- ----- ---- --------
FOURTH QUARTER 2023 OUTLOOK
The following table outlines onsemi’s projected fourth quarter of 2023 GAAP and non-GAAP outlook.
Total onsemi Special Total onsemi
GAAP Items ** Non-GAAP***
------------------------ ----------- ------------------------
Revenue $1,950 to $2,050 million - $1,950 to $2,050 million
Gross Margin 45.4% to 47.4% 0.1% 45.5% to 47.5%
Operating Expenses $314 to $329 million $14 million $300 to $315 million
Other Income and
Expense (including
interest), net ($4 million) - ($4 million)
Diluted Earnings Per
Share $1.10 to $1.24 $0.03 $1.13 to $1.27
Diluted Shares
Outstanding * 444 million 6 million 438 million
* Diluted shares outstanding can vary as a result of, among other things,
the actual exercise of options or vesting of restricted stock units, the
incremental dilutive shares from the convertible senior subordinated
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 $52.97 for the 0% Notes, and $103.87 for
the 0.50% Notes, the non-GAAP diluted share count and non-GAAP net income
per share include the anti-dilutive impact of the hedge transactions
entered concurrently with the 0% Notes, and the 0.50% Notes,
respectively. At an average stock price per share between $52.97 and
$74.34 for the 0% Notes, and $103.87 and $156.78 for the 0.50% Notes, the
hedging activity offsets the potentially dilutive effect of the 0% Notes,
and the 0.50% Notes, respectively. In periods when the quarterly average
stock price exceeds $74.34 for the 0% Notes, and $156.78 for the 0.50%
Notes, the dilutive impact of the warrants issued concurrently with such
notes is included in the diluted shares outstanding. GAAP and non-GAAP
diluted share counts are based on either the previous quarter's average
stock price or the stock price as of the last day of the previous
quarter, whichever is higher.
** 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.
*** 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 October 30, 2023 to discuss this announcement and onsemi’s 2023 third quarter results. The Company will also provide a real-time audio webcast of the teleconference on the Investor Relations page of its website at 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(R) company and included in the Nasdaq-100 Index(R) and S&P 500(R) index. Learn more about onsemi at .
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.