ON Semiconductor Corp announced plans on Monday to invest strategically to capture market share in core sectors, following a weaker third-quarter performance.
ON Semiconductor earnings drop in Q3
The Arizona-based semiconductor company reported a 31% drop in net income to $401.7 million for the quarter ending September 27, down from $582.7 million the previous year. Revenue declined by 19% to $1.76 billion, with diluted earnings per share (EPS) slipping 28% to $0.93.
Operating expenses rose 3% to $354 million, largely due to a 5.3% increase in research and development spending, which reached $151 million. The results aligned with the company's previous guidance, which forecasted revenue between $1.70 billion to $1.80 billion and diluted EPS of $0.85 to $0.97.
CEO's comment
CEO Hassane El-Khoury noted that ON Semiconductor is concentrating on long-term growth, particularly in the automotive, industrial, and AI data center markets, where demand for efficient power solutions is increasing.
For the fourth quarter, ON Semiconductor projects revenue between $1.71 billion to $1.81 billion, a decrease from $2.02 billion the prior year, with EPS expected in the range of $0.88 to $1.00, down from $1.28.
