ON Semiconductor downgrades 4Q earning estimates

Phoenix, Arizona–ON Semiconductor Corp. has announced that sales for the company’s fourth quarter (4Q) ending Dec. 31, 2000 are expected to be down 7 to 9% from the third quarter of 2000, with earnings per share expected to be 10 to 12 cents excluding amortization of goodwill and other intangibles.

Prior expectations for the 4Q were flat sequential revenues and earnings per share of 18 cents, excluding amortization of goodwill and other intangibles. In the third quarter of fiscal 2000, the company reported total revenues of $543 million and net income of about $30 million, or 17 cents per share.

Commenting on the near-term outlook, Steve Hanson, president and chief executive officer of ON Semiconductor, stated, “Overall demand has softened in recent weeks and customers have delayed or cancelled existing orders to manage their inventories in line with their incoming business. Consequently, turns for the quarter have been lower than normal. We are experiencing the same softness in the computing, communications, and consumer markets that has been observed by most of our competitors and customers.”

Looking further out, the company expects revenues for the first quarter of 2001 to be down 5 to 7% from estimated revenues for the 4Q of 2000.


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