March 12, 2001–Phoenix, Arizona–ON Semiconductor Corp. recently announced that product revenues for the first quarter of 2001 are expected to be down approximately 30% from the fourth quarter of 2000, with an expected loss per share of 13 to 15 cents, excluding restructuring charges, amortization of goodwill, and other intangibles.
Previously, the company had expected a sequential product revenue reduction of 18 to 20% and earnings per share between breakeven and a 3 cent loss. In the fourth quarter of fiscal 2000, the company reported product revenues of $491 million and net income of approximately $21 million, or 12 cents per share, excluding amortization of goodwill and other intangibles.
Commenting on the near-term outlook, Steve Hanson, president and chief executive officer of ON Semiconductor stated, “Overall demand for our products continues to be soft. Customers continue to delay or cancel bookings in order to manage their inventories in line with their incoming business. Consequently, orders for the current quarter are trending below the fourth quarter of 2000. Our customers are unable to give us much visibility as to expected requirements. As a result, we are managing our resources prudently, staying close to our customers for signals of an upturn, and continuing our new product development efforts.”