ON Semiconductor Reports First Quarter 2017 Results

GAAP revenue of $1,436.7 million and non-GAAP revenue of $1,281.6 million
GAAP gross margin of 35.0 percent and non-GAAP gross margin of 35.4 percent
GAAP operating margin of 12.8 percent and non-GAAP operating margin of 13.2 percent
Operating cash flow of $208.5 million and free cash flow of $155.8 million

PHOENIX — (BUSINESS WIRE) — May 7, 2017 — ON Semiconductor Corporation (Nasdaq: ON) (the “Company”) today announced financial results for the first quarter of 2017. Total GAAP revenue in the first quarter of 2017 was $1,436.7 million, up approximately 76 percent compared to the same quarter last year, and up approximately 14 percent as compared to revenue in the prior quarter. Non-GAAP revenue, which excludes the one-time impact from a change in revenue recognition to the “sell-in” method from the “sell-through” method, was $1,281.6 million, up approximately 57 percent as compared to the same quarter last year, and up approximately two percent as compared to revenue in the prior quarter.

“We continue to demonstrate strong growth in our revenue and profitability, and our free cash flow generation has improved significantly year over year,” said Keith Jackson, president and CEO of ON Semiconductor. “With a broad portfolio of analog, power and sensor products, operating leverage, and synergies from our acquisition of Fairchild, we believe that we are well positioned to benefit from improving industry demand environment.”

Mr. Jackson continued, “Business conditions continue to improve across most end-markets and geographies. Our momentum in key end-markets, including industrial, automotive and communications remains strong. Commentary from our global customers in industrial, automotive and communications end-markets and macro-economic data point to improving business trends in 2017.”


First Quarter Results (GAAP)

(in millions, except per share data)	1Q 2017		1Q 2016		Year-Over- Year Change		4Q 2016		Sequential Change
Revenues	$	1,436.7	$	817.2	76	%	$	1,261.0	14	%
Gross Profit		503.3		275.5	83	%		384.5	31	%
Operating Income		183.4		58.4	214	%		55.7	229	%
Income Before Income Taxes		115.0		41.7	176	%		18.2	532	%
Net Income		78.2		36.0	117	%		110.9	(29	)%
Diluted Earnings Per Share		0.18		0.09	100	%		0.26	(31	)%
Diluted Share Count		425.8		415.5	2	%		426.9	—	%


First Quarter Results (Non-GAAP)

(in millions)	1Q 2017		1Q 2016		Year-Over- Year Change		4Q 2016		Sequential Change
Revenues	$	1,281.6	$	817.2	57	%	$	1,261.0	2	%
Gross Profit		454.1		275.5	65	%		443.3	2	%
Operating Income		169.2		86.3	96	%		162.2	4	%
Income Before Income Taxes		133.2		76.1	75	%		132.0	1	%
Diluted Share Count		425.8		415.5	2	%		426.9	—	%


First Quarter Key Cash Flow Items

(in millions)	1Q 2017		1Q 2016		Year-Over- Year Change		4Q 2016		Sequential Change
Cash Taxes	$	18.4	$	5.4	241	%	$	8.2	124	%
Operating Cash Flow		208.5		114.9	81	%		229.4	(9	)%
Free Cash Flow		155.8		42.0	271	%		179.5	(13	)%

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