ON Semiconductor has announced that total revenues in the fourth quarter of 2005 were $341.8 million, an increase of approximately 9% from the third quarter of 2005.
ON Semiconductor has announced that total revenues in the fourth quarter of 2005 were $341.8 million, an increase of approximately 9% from the third quarter of 2005. During the fourth quarter of 2005, the company reported net income of $43.8 million. Fully diluted earnings per share for the fourth quarter of 2005 were $0.07 per share, which included a deemed dividend charge of approximately $0.06 per share, associated with a premium, in the form of inducement shares, for the conversion of the Series A Cumulative Preferred Stock into common stock.
During the third quarter of 2005, the company reported net income of $23.5 million, or $0.06 per share on a fully diluted basis.
On a mix-adjusted basis, average selling prices in the fourth quarter of 2005 were down approximately 2% from the third quarter of 2005.
The company’s gross margin in the fourth quarter was 35.0%, an increase of approximately 180 basis points as compared with the third quarter of 2005.
EBITDA for the fourth quarter of 2005 was $76.8 million and included a $0.8 million restructuring, asset impairments and other benefit.
EBITDA for the third quarter of 2005 was $65.4 million and included $0.2 million in restructuring, asset impairments and other charges.
The $0.8 million in restructuring, asset impairments and other benefit for the fourth quarter of 2005 was primarily related to reversals of previously accrued costs associated with the closure of our East Greenwich manufacturing facility.
Although total revenues for 2005 of $1.261 billion were approximately flat compared with $1.267 billion of revenues for 2004, fourth quarter 2005 revenues of $341.8 million were up approximately 11% compared with fourth quarter 2004 revenues of $306.8 million.
During 2005 the company reported net income of $100.6 million that included $3.3 million in restructuring, asset impairments and other charges.
During 2004 the company reported a net loss of $123.7 million that included a loss on debt prepayment of $159.7 million and restructuring, asset impairments and other charges of $19.6 million.
The company’s gross margin increased by approximately 80 basis points to 33.2% in 2005 from 32.4% in 2004.
‘2005 was a significant year for the company’, said Keith Jackson, ON Semiconductor President and CEO.
‘We exited the year with the highest gross margin and the first year of profitability since 2000′.
‘We also shipped record units during the fourth quarter at an annualised run rate of approximately 30 billion units’.
‘We look to continue to fuel our growth with new product designs and wins in the computing, consumer and wireless end-markets and are excited about our prospects for the upcoming year’.
‘Based on booking trends, backlog levels and estimated turns levels, we anticipate that total revenues will be approximately $330 million in the first quarter of 2006 as compared with revenues of $302.4 million in the first quarter of 2005 and revenues of $341.8 million in the fourth quarter of 2005′, Jackson said.
‘Backlog levels at the beginning of the first quarter were up from backlog levels at the beginning of the fourth quarter of 2005, and represented over 90% of our anticipated first quarter 2006 revenues’.
‘We expect that average selling prices will be down approximately 1% for the first quarter of 2006′.
‘We also expect cost reductions to offset the decline in average selling prices and that gross margins will be flat at approximately 35% in the first quarter of 2006′.
‘Beginning in the first quarter of 2006, we are required to expense stock-based compensation’.
‘This is in accordance with the Statement of Financial Accounting Standards No 123 Share Based Payment’.
‘We currently expect this expense to be approximately $2 million in the first quarter of 2006′.