ON Semiconductor Corporation (ON) has reported an 104.99 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $110.90 million, or $0.26 a share in the quarter, compared with $54.10 million, or $0.13 a share for the same period last year. Revenue during the quarter surged 50.07 percent to $1,261 million from $840.30 million in the previous year period. Gross margin for the quarter contracted 282 basis points over the previous year period to 30.49 percent. Total expenses were 95.58 percent of quarterly revenues, up from 93.40 percent for the same period last year. That has resulted in a contraction of 219 basis points in operating margin to 4.42 percent.
Operating income for the quarter was $55.70 million, compared with $55.50 million in the previous year period.
However, the adjusted operating income for the quarter stood at $162.20 million compared to $93.20 million in the prior year period. At the same time, adjusted operating margin improved 177 basis points in the quarter to 12.86 percent from 11.09 percent in the last year period.
"Our results in the fourth quarter provide clear evidence of our strong execution on the integration of Fairchild, and the results also validate our strategic and financial rationale for the acquisition," said Keith Jackson, president and chief executive officer of ON Semiconductor. "We continue to make rapid progress in the integration, and we are currently tracking significantly ahead of schedule in realizing synergies from the combination of Fairchild and ON Semiconductor."
For the first-quarter 2017, ON Semiconductor Corporation expects revenue to be in the range of $1,215 million to $1,265 million. The company expects adjusted revenue to be in the range of $1,215 million to $1,265 million.
Operating cash flow improves
ON Semiconductor Corporation has generated cash of $581.20 million from operating activities during the year, up 23.50 percent or $110.60 million, when compared with the last year. The company has spent $2,434.60 million cash to meet investing activities during the year as against cash outgo of $264.50 million in the last year. It has incurred net capital expenditure of $210.30 million on net basis during the year, down 19.02 percent or $49.40 million from year ago.
Cash flow from financing activities was $2,264.70 million for the year as against cash outgo of $99.80 million in the last year period.
Cash and cash equivalents stood at $1,028.10 million as on Dec. 31, 2016, up 66.47 percent or $410.50 million from $617.60 million on Dec. 31, 2015.
Working capital increases sharply
ON Semiconductor Corporation has recorded an increase in the working capital over the last year. It stood at $1,366.50 million as at Dec. 31, 2016, up 109.52 percent or $714.30 million from $652.20 million on Dec. 31, 2015. Current ratio was at 1.91 as on Dec. 31, 2016, up from 1.53 on Dec. 31, 2015.
Debt increases substantially
ON Semiconductor Corporation has witnessed an increase in total debt over the last one year. It stood at $3,622.30 million as on Dec. 31, 2016, up 159.87 percent or $2,228.40 million from $1,393.90 million on Dec. 31, 2015. Total debt was 52.31 percent of total assets as on Dec. 31, 2016, compared with 36.02 percent on Dec. 31, 2015. Debt to equity ratio was at 1.96 as on Dec. 31, 2016, up from 0.85 as on Dec. 31, 2015. Interest coverage ratio deteriorated to 1.36 for the quarter from 3.72 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
