onsemi announced results for the first quarter of 2024 with the following highlights:
- Revenue of $1,862.7 million
- GAAP gross margin and non-GAAP gross margin of 45.8% and 45.9%, respectively
- GAAP operating margin and non-GAAP operating margin of 28.2% and 29.0%, respectively
- GAAP diluted earnings per share and non-GAAP diluted earnings per share of $1.04 and $1.08, respectively
- Returned ~100% of free cash flow over last twelve months to shareholders through stock repurchases
“The structural changes we have made to the business over the last three years have enabled us to sustain our gross margin despite challenging market conditions,” said Hassane El-Khoury, president and chief executive officer of onsemi. “In the current environment, we remain focused on execution while investing for our long-term growth. As power continues to play a critical role in the world’s increasing energy demands, efficiency is paramount, and we are positioned to continue to gain share with our portfolio of industry-leading power and sensing technologies.”
Selected financial results for the quarter are shown below with comparable periods (unaudited):
| GAAP | Non-GAAP | ||||||||||||||||||
| (Revenue and Net Income in millions) | Q1 2024 | Q4 2023 | Q1 2023 | Q1 2024 | Q4 2023 | Q1 2023 | |||||||||||||
| Revenue | $ | 1,862.7 | $ | 2,018.1 | $ | 1,959.7 | $ | 1,862.7 | $ | 2,018.1 | $ | 1,959.7 | |||||||
| Gross Margin | 45.8 | % | 46.7 | % | 46.8 | % | 45.9 | % | 46.7 | % | 46.8 | % | |||||||
| Operating Margin | 28.2 | % | 30.3 | % | 28.8 | % | 29.0 | % | 31.6 | % | 32.2 | % | |||||||
| Net Income attributable to ON Semiconductor Corporation | $ | 453.0 | $ | 562.7 | $ | 461.7 | $ | 464.5 | $ | 540.9 | $ | 523.7 | |||||||
| Diluted Earnings Per Share | $ | 1.04 | $ | 1.28 | $ | 1.03 | $ | 1.08 | $ | 1.25 | $ | 1.19 | |||||||
| Revenue Summary (in millions) (Unaudited) | |||||||||||
| Three Months Ended | |||||||||||
| Business Segment(1) | Q1 2024 | Q4 2023 | Q1 2023 | Sequential Change | Year-over-Year Change | ||||||
| PSG | $ | 874.2 | $ | 965.5 | $ | 860.9 | (9 | )% | 2 | % | |
| AMG | 697.0 | 744.9 | 744.7 | (6 | )% | (6 | )% | ||||
| ISG | 291.5 | 307.7 | 354.1 | (5 | )% | (18 | )% | ||||
| Total | $ | 1,862.7 | $ | 2,018.1 | $ | 1,959.7 | (8 | )% | (5 | )% | |
| (1) | During the first quarter of 2024, the Company reorganized certain reporting units and its segment reporting structure. As a result of the reorganization of divisions within PSG and AMG, the prior-period amounts have been reclassified to conform to current-period presentation. |
SECOND QUARTER 2024 OUTLOOK
The following table outlines onsemi’s projected second quarter of 2024 GAAP and non-GAAP outlook.
| Total onsemiGAAP | SpecialItems | Total onsemiNon-GAAP | |
| Revenue | $1,680 to $1,780 million | – | $1,680 to $1,780 million |
| Gross Margin | 44.1% to 46.1% | 0.1% | 44.2% to 46.2% |
| Operating Expenses | $327 to $342 million | $14 million | $313 to $328 million |
| Other Income and Expense (including interest), net | ($12 million) | – | ($12 million) |
| Diluted Earnings Per Share | $0.82 to $0.94 | $0.04 | $0.86 to $0.98 |
| Diluted Shares Outstanding | 436 million | 4 million | 432 million |
Original – onsemi
