April 30, 2024 – onsemi (NASDAQ: ON) announced its first quarter fiscal 2024 results, highlights:
• First-quarter revenue of $1,862.7 million
• GAAP and non-GAAP gross margin of 45.8% and 45.9%, respectively for the first quarter
• First-quarter GAAP operating margin and non-GAAP operating margin of 28.2% and 29.0%, respectively
• GAAP earnings per diluted share were $1.04 and non-GAAP earnings per diluted share were $1.08 in the first quarter
• Returned ~100% of free cash flow to shareholders through share buybacks over the past 12 months
Hassane El-Khoury, President and Chief Executive Officer of onsemi, said, "We have made structural adjustments to our business over the past three years, which have enabled us to maintain gross margins in challenging market conditions. In the current environment, we remain focused on execution while investing in long-term growth. "As electricity continues to play a key role in the world's growing energy demand, energy efficiency is critical, and we are poised to continue to expand our market share with our industry-leading power and sensing technologies and product portfolio." ”
The following table summarizes selected financial results (unaudited) for the first quarter of 2024 and for comparable periods:
| GAAP | Non-GAAP | |||||
| (Revenue and net in millions of dollars) | 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% |
| onsemi's net revenue attributable to it | $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 | $1.19 |
| Revenue aggregation | |||||
| (US$ millions) | |||||
| (Unaudited) | |||||
| 3 months ending quarter | |||||
| Product Department(1) | Q1 2024 | Q4 2023 | Q1 2023 | Month-on-month change | Year-over-year change |
| Power Solutions Group (PSG) | $ 874.2 | $ 965.5 | $ 860.9 | (9)% | 2% |
| Analog & Mixed Signal Division (AMG) | $ 697.0 | $ 744.9 | $ 744.7 | (6)% | (6)% |
| Intelligent Sensing Group (ISG) | $ 291.5 | $ 307.7 | $ 354.1 | (5)% | (18)% |
| Total | $1,862.7 | $2,018.1 | $1,959.7 | (8)% | (5)% |
(1) In the first quarter of 2024, onsemi restructured certain segments. As a result of the restructuring of PSG and AMG, prior-period amounts have been reclassified to conform to the presentation of the current period.
Outlook for the second quarter of 2024
The following table outlines onsemi's expected GAAP and non-GAAP outlook for the second quarter of 2024:
| onsemi GAAP total | Special Projects** | 安森美non-GAAP总额*** | |
| revenue | $1,680 million to $1,780 million | - | $1,680 million to $1,780 million |
| Gross margin | 44.1% to 46.1% | 0.1% | 44.2% to 46.2% |
| Operating expenses | $327 million USD to $342 million USD | $14 million USD | $313 million USD to $328 million USD |
| Other income and expenses, net (including interest expense) | (US$ 12 million) | - | (US$ 12 million) |
| Diluted earnings per share | $0.82 to $0.94 | $0.04 USD | $0.86 to $0.98 |
| Number of Diluted Shares* | 436 million | 4 million | 432 million |
Financials
* Diluted shares outstanding can vary as a result of, among other things, the vesting of restricted stock units, the incremental dilutive shares from the convertible senior subordinated notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. In periods when the quarterly average stock price per share exceeds $52.97 for the 0% Notes, and $103.87 for the 0.50% Notes, the non-GAAP diluted share count and non-GAAP net income per share include the anti-dilutive impact of the hedge transactions entered concurrently with the 0% Notes, and the 0.50% Notes, respectively. At an average stock price per share between $52.97 and $74.34 for the 0% Notes, and $103.87 and $156.78 for the 0.50% Notes, the hedging activity offsets the potentially dilutive effect of the 0% Notes, and the 0.50% Notes, respectively. In periods when the quarterly average stock price exceeds $74.34 for the 0% Notes, and $156.78 for the 0.50% Notes, the dilutive impact of the warrants issued concurrently with such notes is included in the diluted shares outstanding. GAAP and non-GAAP diluted share counts are based on either the previous quarter's average stock price or the stock price as of the last day of the previous quarter, whichever is higher.
** Special items may include: amortization of acquisition-related intangibles; expensing of appraised inventory fair market value step-up; non-recurring facility costs; in-process research and development expenses; restructuring, asset impairments and other, net; goodwill impairment charges; gains and losses on debt prepayment; actuarial (gains) losses on pension plans and other pension benefits; and certain other special items, as necessary. These special items are out of our control and could change significantly from period to period. As a result, we are not able to reasonably estimate and separately present the individual impact or probable significance of these special items, and we are similarly unable to provide a reconciliation of the non-GAAP measures. The reconciliation that is unavailable would include a forward-looking income statement, balance sheet and statement of cash flows in accordance with GAAP. For this reason, we use a projected range of the aggregate amount of special items in order to calculate our projected non-GAAP operating expense outlook.
*** We believe these non-GAAP measures provide important supplemental information to investors. We use these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations that, when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide in our releases, provide a more complete understanding of factors and trends affecting our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures, even if they have similar names.
teleconference
onsemi has held a financial conference call at 9 a.m. Eastern Standard Time (ET) on April 29, 2024 to discuss the release and onsemi's first-quarter and full-year 2024 results. The English conference call was broadcast live on the "Investor Relations" page http://www.onsemi.cn on the Company's website. The live webcast was replayed on the website approximately 1 hour later and lasted for 30 days.
Forward-Looking Statements
This document includes “forward-looking statements,” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this document could be deemed forward-looking statements, particularly statements about the future financial performance of onsemi, including financial guidance for the second quarter of 2024. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans,” “anticipates,” “should” or similar expressions or by discussions of strategy, plans or intentions. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Certain factors that could affect our future results or events are described under Part I, Item 1A “Risk Factors” in the 2023 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 5, 2024 (the “2023 Form 10-K”) and from time to time in our other SEC reports. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information, which speaks only as of the date made, except as may be required by law. Investing in our securities involves a high degree of risk and uncertainty, and you should carefully consider the trends, risks and uncertainties described in this document, our 2023 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
关于安森美（onsemi）
onsemi (NASDAQ: ON) is committed to driving disruptive innovation for a better future. Focusing on megatrends in the automotive and industrial end markets, the company is accelerating transformative innovation in segments such as automotive electronics and safety, sustainable power grids, industrial automation, and 5G and cloud infrastructure. onsemi offers a highly differentiated portfolio of innovative products and intelligent power and intelligent sensing technologies to solve the world's most complex challenges and lead the way in creating a safer, cleaner and smarter world. onsemi is ranked on the Fortune 500 U.S. and is included in the NASDAQ 100 and S&P 500 indices.