“Business trends during the fourth quarter of 2013 improved significantly with heightened order activity, and the strength has continued thus far in the current quarter. With an improving macro-economic outlook, especially for developed economies, and with favorable supply-demand dynamics, we are upbeat on our outlook for 2014.”
FIRST QUARTER 2014 OUTLOOK
“Based upon product booking trends, backlog levels, and estimated turns levels, we anticipate that total ON Semiconductor revenues will be approximately $695 million to $725 million in the first quarter of 2014,” Jackson said. “Backlog levels for the first quarter of 2014 represent approximately 80 to 85 percent of our anticipated first quarter 2014 revenues. Average selling prices for the first quarter of 2014 are expected to be down approximately 2 percent when compared to the fourth quarter of 2013. The outlook for the first quarter of 2014 includes stock-based compensation expense of approximately $7 to $9 million.”
The following table outlines ON Semiconductor's projected first quarter of 2014 GAAP and non-GAAP outlook.
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ON SEMICONDUCTOR Q1 2014 BUSINESS OUTLOOK |
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Total ON Semiconductor
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Special
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Total ON Semiconductor
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| Revenue | $695 to $725 million | $695 to $725 million | ||||||||||
| Gross Margin | 33.0% to 35.0% | 33.0% to 35.0% | ||||||||||
| Operating Expenses | $171 to $184 million | $13 to $16 million | $158 to $168 million | |||||||||
| Net Interest Expense / Other Expenses | $7 to $9 million | $7 to $9 million | ||||||||||
| Convertible Notes, Non-cash Interest Expense* | $2 million | $2 million | $0 million | |||||||||
| Tax | $5 to $7 million | $2 million | $3 to $5 million | |||||||||
| Diluted Share Count ** | 445 million | 445 million | ||||||||||
| * | Convertible Notes, Non-cash Interest Expense is calculated pursuant to FASB's Accounting Standards Codification (“ASC”) Topic 470: Debt. | ||
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** |
Diluted share count can vary for, among other things, the actual exercise of options or vesting of restricted stock units, the incremental dilutive shares from all of the company's convertible senior subordinated notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. |
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*** |
Special items may include: amortization of intangible assets, amortization of acquisition-related intangibles, expensing of appraised inventory fair market value step-up, inventory valuation adjustments, purchased in-process research and development expenses, restructuring, asset impairments and other, net, goodwill impairment charges, gains and losses on debt prepayment, non-cash interest expense, income tax adjustments to approximate cash taxes, actuarial (gains) losses on pension plans and other pension benefits, and certain other special items, as necessary. |
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Regulation G and other provisions of the securities laws regulate the use of financial measures that are not prepared in accordance with GAAP. We believe these non-GAAP measures provide important supplemental information to investors. We use these measures, together with GAAP measures, for internal managerial purposes and as a means to evaluate period-to-period comparisons. However, we do not, and you should not, rely on non-GAAP financial measures alone as measures of our performance. We believe that non-GAAP financial measures reflect an additional way of viewing aspects of our operations that - when taken together with GAAP results and the reconciliations to corresponding GAAP financial measures that we also provide in our releases - provide a more complete understanding of factors and trends affecting our business. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures, even if they have similar names. |
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