On Semi expects to report loss as sales drop 30% in Q1

On Semi expects to report loss as sales drop 30% in Q1
PHOENIX--On Semiconductor Corp. here today (March 8) warned investors that it now expects revenues to decline 30% in the first quarter from $490.7 million in the fourth quarter. Previously, the spin-off from Motorola Inc. had been forecasting an 18-to-20% sequential drop in revenues.

The company said it anticipates a loss of $0.13-to-0.15 per share compared to a fourth-quarter net income of $21 million, or $0.12 cents per share, excluding amortization of goodwill and other intangibles.

"Overall demand for our products continues to be soft," said Steve Hanson, president and CEO of On Semiconductor. "Customers continue to delay or cancel bookings in order to manage their inventories in line with their incoming business."

To deal with the downturn, On Semiconductor plans to accelerate its transfer of manufacturing to "lower cost regions," Hanson said. The company will also transition higher-cost external supply to internal manufacturing, work with material suppliers to lower costs, and aggressively streamline overhead, he said.