Summary by Moomoo AI
ON Semiconductor, a leading provider of intelligent power and sensing solutions, reported a decrease in revenue and net income for the quarter ended September 27, 2024, compared to the same period in 2023. Revenue fell by approximately 19% year-over-year to $1,761.9 million, while net income dropped by $181.0 million to $401.7 million. The company attributed the decline primarily to decreased demand in the automotive and industrial end-markets. Gross profit also saw a decrease of 22% to $799.4 million, with gross margin contracting by 1.9 percentage points to 45.4%. Operating expenses saw a slight increase, with research and development costs rising by 5% to $151.0 million. The company also undertook a business realignment, resulting in severance and related charges of $70.1 million and asset impairments of $29.5 million. Despite the downturn, ON Semiconductor repurchased 2.8 million shares for $200.4 million during the quarter. Looking ahead, the company is focused on profitable revenue growth, maintaining stable gross margins, and achieving efficiencies in operating and capital expenditures. They are also streamlining resources and aligning with their 'Fab Right' manufacturing strategy as part of their 2024 business realignment efforts.
