Automotive and Industrial end-markets drive growth, contribute 80% of revenue
SCOTTSDALE, Ariz. — (BUSINESS WIRE) — July 31, 2023 — onsemi (the “Company”) (Nasdaq: ON) today announced results for the second quarter of 2023 with the following highlights:
- Revenue of $2,094.4 million, flat year-over-year
- GAAP and non-GAAP gross margin of 47.4 percent
- GAAP operating margin and non-GAAP operating margin of 32.2 percent and 32.8 percent, respectively
- GAAP diluted earnings per share of $1.29 and non-GAAP diluted earnings per share of $1.33, approximately flat compared to $1.34 in the quarter a year ago
- Record Automotive revenue exceeded $1 billion increased 35% year-over-year
- Industrial revenue of $609.3 million increased 5% year-over-year
- Silicon carbide revenue grew nearly 4x year-over-year
“onsemi delivered another excellent quarter, ahead of guidance on revenue and earnings per share, driven by growth in automotive and industrial. Our operational excellence and winning formula have proven to be the right strategy in sustaining our financial performance amid a soft macroeconomic environment,” said Hassane El-Khoury, president and chief executive officer, onsemi. “Our brownfield capacity expansion is creating an opportunity for onsemi to gain share in silicon carbide by capitalizing on the rapidly accelerating demand for electrification and renewable energy.”
Selected financial results for the quarter are shown below with comparable periods (unaudited):
|
GAAP |
|
Non-GAAP |
||||||||||||||||
(Revenue and Net Income in millions) |
Q2 2023 |
Q1 2023 |
Q2 2022 |
|
Q2 2023 |
Q1 2023 |
Q2 2022 |
||||||||||||
Revenue |
$ |
2,094.4 |
|
$ |
1,959.7 |
|
$ |
2,085.0 |
|
|
$ |
2,094.4 |
|
$ |
1,959.7 |
|
$ |
2,085.0 |
|
Gross Margin |
|
47.4 |
% |
|
46.8 |
% |
|
49.7 |
% |
|
|
47.4 |
% |
|
46.8 |
% |
|
49.7 |
% |
Operating Margin |
|
32.2 |
% |
|
28.8 |
% |
|
28.0 |
% |
|
|
32.8 |
% |
|
32.2 |
% |
|
34.5 |
% |
| Net Income attributable to ON Semiconductor Corporation |
$ |
576.6 |
|
$ |
461.7 |
|
$ |
455.8 |
|
|
$ |
583.3 |
|
$ |
523.7 |
|
$ |
589.3 |
|
| Diluted Earnings Per Share |
$ |
1.29 |
|
$ |
1.03 |
|
$ |
1.02 |
|
|
$ |
1.33 |
|
$ |
1.19 |
|
$ |
1.34 |
|
| Revenue Summary (in millions) (Unaudited) |
|||||||||||
|
|
Three Months Ended |
|
|
|
|||||||
| Business Segment |
Q2 2023 |
Q1 2023 |
Q2 2022 |
|
Sequential Change |
Year-over-Year Change |
|||||
| PSG |
$ |
1,119.8 |
$ |
1,012.8 |
$ |
1,057.0 |
|
11 |
% |
6 |
% |
| ASG |
|
649.5 |
|
592.8 |
|
716.7 |
|
10 |
% |
(9 |
)% |
| ISG |
|
325.1 |
|
354.1 |
|
311.3 |
|
(8 |
)% |
4 |
% |
| Total |
$ |
2,094.4 |
$ |
1,959.7 |
$ |
2,085.0 |
|
7 |
% |
— |
% |
