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EXHIBIT 99
[ON LOGO]
Everett Tackett Dan Martin
Director Public Relations Director Investor Relations
ON Semiconductor ON Semiconductor
(602) 244-4534 (602) 244-4905
everett.tackett@onsemi.com dan.martin@onsemi.com
ON SEMICONDUCTOR ANNOUNCES FIRST QUARTER 2001 RESULTS
PHOENIX, ARIZ. - APRIL 25, 2001 - ON Semiconductor Corporation (Nasdaq: ONNN)
today announced that total product revenues in the first quarter of 2001 were
$357.0 million, a decrease of 13% compared to the first quarter of 2000 and a
decrease of 24% from the fourth quarter of 2000. Excluding amortization of
intangibles, restructuring charges and the cumulative effect of an accounting
change, the Company had a net loss of $12.7 million, or ($0.07) per diluted
share, in the first quarter of 2001 compared to net income of $10.9 million, or
$0.03 per diluted share, in the first quarter of 2000. Including amortization of
intangibles, restructuring charges and the cumulative effect of an accounting
change, the Company reported a net loss of $159.4 million, or ($0.92) per
diluted share, in the first quarter of 2001 compared to net income of $7.9
million, or $0.01 per diluted share, in the first quarter of 2000.
Effective January 1, 2001, the Company changed its accounting method for
recognizing revenue on shipments to distributors. On that date, the Company
began deferring revenues on shipments to distributors until products are resold
to end users. The cumulative effect of this change in accounting method was a
charge of $116.4 million (net of $38.8 million of income taxes) in the first
quarter. For comparative commentary purposes, prior period figures are pro forma
as if the change in distributor revenue recognition had been in effect in all
periods discussed.
Commenting on the accounting change, Dario Sacomani, senior vice president
and chief financial officer, said, "Our new method of revenue recognition on
shipments to distributors is a more conservative approach. This policy will
increase the Company's focus on end user demand and will be an important first
step in minimizing future volatility and excess inventory in the supply chain."
-more-
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ON Semiconductor Announces First Quarter 2001 Results
2-2-2-2
As part of cost reduction actions, the Company also incurred restructuring
charges of $38.0 million, or $26.8 million on an after-tax basis, in the first
quarter of 2001 primarily associated with manufacturing and administrative
overhead workforce reductions worldwide.
Overall gross margin was 24.0% in the first quarter of 2001, down 7.2
percentage points from the first quarter of 2000 primarily due to lower unit
shipments and resulting lower factory utilization. Operating expenses were
significantly reduced in the quarter, particularly general and administrative
expenses, which were cut 37% from the fourth quarter 2000, as a result of
aggressive cost reduction actions. Earnings before interest, taxes, depreciation
and amortization, excluding minority interests and restructuring charges in the
first quarter of 2001 were $43.5 million, compared to $92.1 million in the first
quarter of 2000.
"Within this challenging business environment, we continue to stay focused
on serving our customers, developing new products and executing on company-wide
cost reductions. This continued drive to develop relationships, enrich our
product portfolio and improve operational efficiency will strengthen our
competitive position to better capitalize on a market upturn," said Steve
Hanson, president and chief executive officer. "We are also accelerating several
of our supply-chain initiatives with the intent of getting closer to our
customers. These efforts will help us to better manage the inventory situation
during abrupt changes in the market."
For its second quarter outlook, the Company anticipates approximately flat
to slightly down sequential revenues with slightly better gross and operating
margins as compared to the first quarter of 2001 as the Company begins to
realize the impact of cost reduction actions taken in the first quarter.
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 fiber optic networking
equipment to the precise power management functions found in today's advanced
portable electronics. For more information visit ON Semiconductor's Web site at
http://www.onsemi.com.
# # #
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ON Semiconductor Announces First Quarter 2001 Results
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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.
This press release includes "forward-looking statements" as that term is defined
in Section 21E of the Securities Exchange Act of 1934, as amended.
Forward-looking statements are often characterized 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, loss of key customers, order cancellations or reduced
bookings, changes in manufacturing yields, restructuring programs and the impact
of such programs, control of costs and expenses, inability to reduce
manufacturing and general and administrative costs, litigation, risks associated
with acquisitions, changes in management, changes in management, risks
associated with our debt, and risks involving environmental or other
governmental regulation. Additional factors that could affect the company's
future operating results are described in Exhibit 99.1, entitled "Risk Factors"
in our Annual Report on Form 10-K for the year ended December 31, 2000 and other
factors as described 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.
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ON Semiconductor Announces First Quarter 2001 Results
4-4-4-4
ON SEMICONDUCTOR
Unaudited Consolidated Statements of Operations
(in millions, except per share amounts)
THREE MONTHS ENDED
------------------
APRIL 1, 2000
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MARCH 30, PRO AS
2001 FORMA(1) REPORTED
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Revenues:
Net product revenues $ 357.0 $ 412.5 $ 451.5
Foundry revenues from Motorola 3.5 35.3 35.3
----- ---- ----
Total revenues 360.5 447.8 486.8
Cost of sales 273.9 307.9 323.4
----- ---- ----
Gross profit 86.6 139.9 163.4
----- ---- ----
Operating expenses:
Research and development 22.9 11.2 11.2
Selling and marketing 23.8 19.6 19.6
General and administrative 36.8 51.0 51.0
Amortization of goodwill and other intangibles 5.8 -- --
Restructuring and other charges 38.0 4.8 4.8
----- ---- ----
Total operating expenses 127.3 86.6 86.6
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Operating income (loss) (40.7) 53.3 76.8
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Other income (expenses), net:
Interest expense (29.2) (34.7) (34.7)
Equity in earnings (losses) of joint ventures 0.6 (0.2) (0.2)
Gain on sale of investment in joint venture 3.1 -- --
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Other income (expenses), net (25.5) (34.9) (34.9)
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Income (loss) before income taxes, minority interests and
cumulative effect of accounting change (66.2) 18.4 41.9
Provision for income taxes 22.7 (9.8) (15.7)
Minority interests 0.5 (0.7) (0.7)
----- ---- ----
Net income (loss) before cumulative effect of accounting change (43.0) 7.9 25.5
Cumulative effect of accounting change (net of tax) (116.4) -- --
----- ---- ----
Net income (loss) (159.4) 7.9 25.5
Less: Redeemable preferred stock dividends -- (6.6) (6.6)
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Net income (loss) available for common stock $ (159.4) $ 1.3 $ 18.9
========= ========= =========
Earnings (loss) per common share (1):
Basic:
Net income (loss) before cumulative effect of
accounting change $ (0.25) $ 0.01 $ 0.14
Cumulative effect of accounting change (0.67) -- --
----- ---- ----
Net income (loss) $ (0.92) $ 0.01 $ 0.14
========= ========= =========
Diluted:
Net income (loss) before cumulative $ (0.25) $ 0.01 $ 0.13
effect of accounting change
Cumulative effect of accounting change (0.67) -- --
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Net income (loss) $ (0.92) $ 0.01 $ 0.13
========= ========= =========
Weighted average common shares outstanding:
Basic 172.8 136.7 136.7
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Diluted 172.8 142.4 142.4
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Earnings (loss) excluding amortization of intangibles
and other charges:
Net income (loss) $ (159.4) $ 7.9 $ 25.5
Add: Amortization of goodwill and
other intangibles (net of tax) 3.5 -- --
Restructuring and other charges (net of tax) 26.8 3.0 3.0
Cumulative effect of accounting
change (net of tax) 116.4 -- --
----- ---- ----
Earnings (loss) excluding amortization of intangibles
and other charges (12.7) 10.9 28.5
Less: Redeemable preferred stock dividends -- (6.6) (6.6)
----- ---- ----
Net income (loss) available for common stock $ (12.7) $ 4.3 $ 21.9
========= ========= =========
Earnings (loss) per diluted share (2) $ (0.07) $ 0.03 $ 0.15
========= ========= =========
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(1) Pro forma results for the quarter ended April 1, 2000 reflect the
change in revenue recognition on shipments to distributors.
(2) Basic earnings (loss) per common share are computed by dividing net
income (loss) available for common stock (net income (loss) less
dividends accrued on the redeemable preferred stock) by the weighted
average number of common shares outstanding during the period.
Diluted earnings per share incorporates the incremental shares
issuable upon the assumed exercise of stock options.
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ON Semiconductor Announces First Quarter 2001 Results
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ON SEMICONDUCTOR
Consolidated Balance Sheets
(in millions)
DECEMBER 31, 2000
MARCH 30, -----------------
2001 PRO FORMA AS REPORTED
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ASSETS
Cash and cash equivalents $ 74.7 $ 188.9 $ 188.9
Receivables, net 190.2 272.1 271.2
Inventories 276.2 258.1 258.1
Other current assets 51.4 39.6 39.6
Deferred income taxes 101.0 79.5 40.7
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Total current assets 693.5 838.2 798.5
Property, plant and equipment, net 658.2 648.2 648.2
Deferred income taxes 292.3 286.8 286.8
Investments in joint ventures 28.7 45.3 45.3
Goodwill and other intangibles, net 135.0 140.8 140.8
Other assets 105.0 103.4 103.4
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Total assets $ 1,912.7 $ 2,062.7 $ 2,023.0
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LIABILITIES, MINORITY INTERESTS AND STOCKHOLDERS' EQUITY
Accounts payable $ 144.9 $ 175.0 $ 175.0
Accrued expenses 115.9 158.2 184.3
Income taxes payable 14.7 22.3 22.3
Accrued interest 11.2 17.9 17.9
Deferred income on shipments to distributors 155.0 182.2 --
Current portion of long-term debt 11.0 5.6 5.6
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Total current liabilities 452.7 561.2 405.1
Long-term debt 1,251.2 1,252.7 1,252.7
Other long-term liabilities 29.1 20.8 20.8
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Total liabilities 1,733.0 1,834.7 1,678.6
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Minority interests in consolidated subsidiaries 6.0 6.7 6.7
------- ------- -------
Common stock 1.7 1.7 1.7
Additional paid-in capital 735.1 730.4 730.4
Accumulated other comprehensive income (10.0) (0.7) (0.7)
Accumulated deficit (553.1) (510.1) (393.7)
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Total stockholders' equity 173.7 221.3 337.7
------- ------- -------
Total liabilities, minority interests and
stockholders' equity $ 1,912.7 $ 2,062.7 $ 2,023.0
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