ON SEMICONDUCTOR ANNOUNCES RECORD REVENUES AND EARNING FOR 2000 Tuesday 6 February 2001 PDF Print ...Overall Product Revenues Increase 24% - Integrated Circuit Revenues Increase 44%... ON Semiconductor (Nasdaq: ONNN) today announced that total product revenues in the fourth quarter of 2000 were $490.7 million, an increase of $62.9 million, or 15%, compared to the fourth quarter of 1999. Excluding amortisation of intangibles and other charges, net income was $21.2 million, or $0.12 per diluted share, in the fourth quarter of 2000 compared to $21.2 million, or $0.10 per diluted share, in the fourth quarter of 1999. Including amortisation of intangibles and other charges, the Company reported net income of $17.7 million, or $0.10 per diluted share, for the fourth quarter of 2000 compared to $19.0 million, or $0.09 per diluted share, in the fourth quarter of 1999. The above results are consistent with the revised fourth quarter guidance given by the Company on December 12, 2000. Product revenue in 2000 was a record $2.012 billion, an increase of $388.0 million, or 24%, compared to pro forma 1999. Excluding amortisation of intangibles and other charges, net income was a record $117.7 million, or $0.66 per diluted share, in 2000 compared to $61.8 million, or $0.25 per diluted share, in pro forma 1999. Including amortisation of intangibles and other charges, the Company reported net income of $71.1 million, or $0.38 per diluted share, in the 2000 compared to $59.6 million, or $0.24 per diluted share, in pro forma 1999. The combined integrated circuit businesses, which include the company's strategic analogue and broadband businesses, achieved record revenues in 2000 and as of year end, represented 52% of total product revenues, compared to 45% at the end of fiscal year 1999. Revenue from integrated circuits increased 44% for the full year compared to 1999 and was up 30% in the fourth quarter of 2000, compared to the fourth quarter of 1999. In the fourth quarter of 2000, analogue revenues increased 42% to $128.1 million and broadband revenues were up 34% to $78.3 million, compared to the fourth quarter 1999. Product gross margin was 35.4% in 2000 compared to 30.4% in pro forma 1999 and 34.3% in the fourth quarter of 2000, compared to 31.2% in the fourth quarter of 1999. Earnings before interest, taxes, depreciation and amortisation, excluding minority interests and other charges in 2000 were $463.1 million, compared to $375.4 million in pro forma 1999 and $98.7 million the fourth quarter of 2000, compared to $105.8 million in the fourth quarter of 1999. Commenting on the results, Steve Hanson, President and Chief Executive Officer of ON Semiconductor, said, "The growth in our integrated circuit revenues and margin expansion is evidence that we continue to make progress in focusing ON Semiconductor toward fast growing, high-performance broadband and power-management integrated circuits used in numerous advanced devices, ranging from high-speed fibre optic networking equipment to today's advanced portable electronics." Citing the proof of the Company's progress in executing this product transition, Hanson commented, "In a little over a year as an independent company, ON Semiconductor has established itself as the second leading provider of analogue power-management semiconductors worldwide according to Venture Development Group. This year alone, ON sold more than $500 million in analogue and $300 million in broadband semiconductors." Noting the Company's commitment to new product development, Hanson added, "ON Semiconductor introduced 160 new products in the fourth quarter of 2000, bringing the total new product introductions for the year to more than 400, more than doubling new product introductions in 1999. With 2000 R&D spending of $69.2 million including $20.6 million in the fourth quarter, we continue to make progress toward our target of tripling our new product research and development investment by the year 2001 compared to 1999. Approximately eighty percent of this investment is focused on our higher growth, higher margin analogue and broadband businesses." Looking Forward The Company provides the following forward-looking statements based on current market conditions and expectations: · Product revenues in the first quarter of 2001 are expected to be down 10% to 12% compared to product revenue of $451.5 million reported in the first quarter of 2000. The Company believes this expected decline is consistent with the expectations of other large semiconductor manufacturers. · While visibility remains limited, the Company expects, based on current market projections, to see record revenues in the second half of 2001. · The Company maintains its commitment to invest in R&D at levels previously stated, expected to be between $110 and $120 million in fiscal 2001, primarily focused on our high-growth, high-margin analogue and broadband businesses. · Now that the Company has substantially completed its separation from Motorola, it will move into the next phase of transformation in which it expects to reduce SG&A expenses through improved process efficiencies, reduced outside services and limited work force reductions. These actions are expected to lower SG&A cost by approximately 20% or $60 million in 2001 compared to 2000. The Company expects this to result in a restructuring charge in the first quarter of 2001. In closing, Hanson stated, "As a result of the Company's continued migration towards higher growth and higher margin products combined with the anticipated positive impact of the SG&A cost transformation, the Company expects, based on current market projections, record gross and operating margins in the second half of 2001." Notes to the Editor: About ON Semiconductor ON Semiconductor (Nasdaq: ONNN) is a global supplier of high-performance broadband and power management integrated circuits and standard semiconductors used in numerous advanced devices ranging from high-speed fibre optic networking equipment to the precise power management functions in today's advanced portable electronics. For more information visit ON Semiconductor's Web site at http://www.onsemi.com ON Semiconductor and the ON Semiconductor 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. Media Contacts: Geert de Vuyst ON Semiconductor (33)-0534-611-390 Geert.De.Vuyst@onsemi.com Or Jonathan Batty/Joanna Lane Brodeur Worldwide (On behalf of ON Semiconductor) (44) (0)1753-790-700 firstname.lastname@example.org email@example.com This press release includes "forward-looking statements" as that term is defined in the Private Litigation Reform Act of 1995. Forward-looking statements are often characterised by the use of words such as "believes," "expects," "estimates," "projects," "may," "will," "intends," "plans," or "anticipates," or by discussions of strategy, plans or intentions. All forward-looking statements in this press release are made based on management's current expectations and estimates, which involve risks, uncertainties and other factors that could cause results to differ materially from those expressed in forward-looking statements. Among these factors are changes in overall economic conditions, the cyclical nature of the semiconductor industry, changes in demand for our products, changes in inventories at our customers and distributors, technological and product development risks, availability of manufacturing capacity, availability of raw materials, competitors' actions relating to products and pricing, loss of key customers, order cancellations or reduced bookings, changes in manufacturing yields, control of costs and expenses, risks associated with acquisitions, changes in management and risks involving environmental or other governmental regulation. Additional factors that could affect the company's future operating results are described under "Risk Factors" in the Registration Statement on Form S-1 and the Prospectus dated April 27, 2000 relating to our initial public offering, and other factors as listed from time to time in our SEC filings. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information. This press release was distributed by ResponseSource Press Release Wire on behalf of Pleon in the following categories: Consumer Technology, Personal Finance, Business & Finance, Computing & Telecoms, for more information visit https://pressreleasewire.responsesource.com/about.