ON Semi plans more job cuts

SAN FRANCISCO—ON Semiconductor Corp. plans to cut additional jobs as part of a plan to save the company between $10 million and $15 million per year, company executives said Thursday (Aug. 2).

In a conference call with analysts to discuss the company's second quarter report Thursday, Donald Colvin, ON Semi's chief financial officer, said the company planned to cut 10 percent of non-manufacturing jobs in "high wage" geographies. Colvin—who the company announced Thursday plans to resign—noted that ON Semi has in recent months announced a number of other job cuts with the closures of three Japanese fabs and two back-end test and assembly facilities in Thailand.

Keith Jackson, ON Semi's CEO, said the closure of the Japanese fabs, new job cuts and various other measures in place should help better position the company for prevailing weak economic conditions. "We do believe that these are the right type of actions to be taking in the likely economy over the next year," Jackson said.

ON Semi reported second quarter sales of $744.8 million, roughly flat with the previous quarter but down 18 percent compared with the second quarter of 2011. The company reported a net income in accordance with generally accepted accounting principles (GAAP) of $6.9 million, or 2 cents per diluted share, down from $57.5 million or 12 cents per diluted share in the previous quarter and $41 million or 9 cents per diluted share in the second quarter of 2011.

Second quarter GAAP net income was weighed down by $58.1 million in restructuring and other charges, ON Semi said.

On a non-GAAP basis, excluding charges, ON Semi reported a second quarter net income of $65 million, or 14 cents per diluted share, up 13 percent compared to the previous quarter but down 43 percent compared with the year-ago quarter.