In its third 2019 fiscal quarter ended September, semiconductor supplier ON Semiconductor reported a GAAP net loss of $60.7 million, or 15 cents per share, on sales of $1.38 billion. This compares to net earnings of $166.9 million, or 38 cents per share, on sales of $1.54 billion in the year-ago third quarter. 2019 third quarter revenue rose 3% sequentially from the previous quarter.
Third quarter 2019 GAAP financial results include a one-time charge of approximately $170 million to settle all pending intellectual property litigation with Power Integrations.
“Business conditions show modest signs of improvement as supply chain inventories have normalized and orders are trending along normal seasonality,” said Keith Jackson, president and CEO of ON Semiconductor, in a statement. “However, global macroeconomic and geopolitical uncertainty still persists, and visibility into end-market demands remains limited,” he added. “Despite the current challenges, key drivers powering our business remain intact, and we are seeing strong traction in key areas of strategic thrust.“
Based on product booking trends, backlog levels, and estimated turns levels, ON Semiconductor projects 2019 fourth quarter revenue to be $1.35 to $1.4 billion. GAAP gross margin for fourth quarter of 2019 is expected to be between 35.7% to 36.7%.