ON Semiconductor Q2 Profit Declines YoY; To Close Fairchild Deal Around Aug.-end

(RTTNews) - ON Semiconductor Corp. (ON) reported second-quarter 2016 non-GAAP net income of $88.5 million, or $0.21 per share, compared to $92.7 million or $0.21 per share, a year ago. On average, 16 analysts polled by Thomson Reuters expected the company to report profit per share of $0.19 for the quarter. Analysts' estimates typically exclude special items. Non-GAAP operating margin was 12.3 percent, flat with prior year period.

ON Semiconductor reported second-quarter GAAP net income of $25.1 million, or $0.06 per share. The company noted that its second quarter 2016 net income was negatively impacted by approximately $63.4 million of special items. In the second quarter of prior year, the company reported net income of $50.7 million or $0.12 per share. GAAP operating margin increased to 8.6% from 7.7%, prior year.

Total revenues in the second quarter of 2016 were $877.8 million, compared to $880.5 million, prior year. Analysts expected revenue of $854.55 million, for the quarter.

ON Semiconductor anticipates total revenue will be approximately $885 to $925 million in the third quarter of 2016. Analysts expect the company to report revenue of $917.22 million, for the quarter. Backlog levels represent approximately 80 to 85 percent of anticipated third quarter 2016 revenue. Third-quarter gross margin is anticipated to be in the range of 34.6% to 36.6%.

ON Semiconductor expects to close the acquisition of Fairchild around the end of August.