(RTTNews) - Silicon solutions provider ON Semiconductor Corp. (ONNN: News ) said Wednesday that its third quarter declined from last year, hurt by lower revenues and deteriorating margins, partially offset by lower operating expenses. The company also provided revenue outlook for the fourth quarter, which came in above the analysts' expectations.

The Phoenix, Arizona-based company reported GAAP net income attributable to ON Semiconductor of $29.9 million or $0.07 per share for the third quarter, down from $50.6 million or $0.13 per share in the prior year quarter. Result for the latest quarter included net charges of $41.0 million or $0.09 per share from special items.

Excluding items, non-GAAP net income dropped to $70.9 million or $0.16 per share from $100.4 million or $0.25 per share in the year-ago quarter.

On average, 17 analysts polled by Thomson Reuters expected the company to report earnings of $0.10 per share for the third quarter. Analysts' estimates typically exclude special items.

Third quarter net revenues decreased to $472.9 million from $581.5 million in the same quarter last year. Nineteen analysts had a consensus revenue estimate of $454.91 million for the third quarter.

As a percentage of sales, GAAP gross margin dropped to 37.2% from 38.1%, while non-GAAP gross margin decreased to 38.5% from 41.5% a year ago.

Total operating expenses for the third quarter declined to $126.1 million from $124.5 million in the prior year quarter.

During the quarter, ON Semiconductor completed the acquisition of privately-held PulseCore Holdings (Cayman) Inc. in an all cash transaction for initial consideration of about $17 million.
The acquisition of PulseCore expands ON Semiconductor's high gross margin clock and circuit protection offerings for the consumer, wireless and computing end-market customers.

For the nine-month period of 2009, net loss attributable to ON Semiconductor was $7.0 million or $0.02 per share, compared to net income of $95.8 million or $0.26 per share in the previous year period.

On a non-GAAP basis, net income decreased to $123.3 million or $0.29 per share from $260.9 million or $0.70 per share in the prior year period.

Net revenues for the period dropped to $1.27 billion from $1.57 billion in the year-ago period.

For the fourth quarter of 2009, ON Semiconductor anticipates total revenues to be between $480 million and $495 million. Street estimates revenues of $467.25 million for the fourth quarter.

To receive FREE breaking news email alerts for ON SEMICONDUCTOR CORP and others in your portfolio

 1   2   Next Page