Date: 06/11/2009

ON Semiconductor reports 13% sequential growth in revenue in 3rd Q 2009

The power semiconductor device vendor ON Semiconductor's 3rd quarter 2009 sales revenues have grown by 13% to $472.9 million from $419.8 million in second quarter of 2009. But compared to last year same time, the revenues have dropped by 18.6%.

In third quarter of 2009, ON Semiconductor has reported a GAAP net income of $29.9 million, or $0.07 per fully diluted share.

On year over year basis, ON Semiconductor has performed slightly better then other power semiconductor device vendors such as Fairchild, Vishay, Intesil and IR. The reason for its better performance in 2009 can be attributed to its higher share in power IC market compared to discrete semiconductor market. Emerging of new China and Taiwan based discrete semiconductor makers can also be seen as another reason for fall in revenues for the US and Europe based power semiconductor makers.

The strategy of the leading power semiconductor vendors now is to acquire any startups with some innovative products. Indication of this is, ON Semiconductor has acquired EMI device expert Pulsecore Semiconductor. Pulsecore has its design roots in Bangalore India.

Comments from Keith Jackson, ON Semiconductor president and CEO:

On the revenue growth:
"We exited the third quarter of 2009 with the highest level of cash, cash equivalents and short-term investments in the company's history at over $470 million and the lowest net debt position in the company's history at approximately $425 million,"

"As a result of the strong financial performance, financial discipline and cash generating capabilities of the company we increased our cash, cash equivalents and short-term investments by approximately $67 million from the prior quarter. While there is still uncertainty as to how quickly the semiconductor industry will return to pre-recession revenue levels, our revenues continue to improve from the lows of the first quarter of 2009. We also believe that the overall supply chain remains very lean. Our weeks of distribution inventory were at the lowest level in the company's history at approximately 9 weeks exiting the third quarter of 2009."

On PulseCore acquisition:

"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,"

"PulseCore's capabilities in standard and custom high-speed and low power analog and mixed signal solutions for electromagnetic interference (EMI) reduction also enhance ON Semiconductor's overall EMI filtering and circuit protection portfolios. In addition, PulseCore's strong design capabilities and history in India represents ON Semiconductor's first foray into design activity in that country."