ON Semiconductor Corporation (NASDAQ: ON) stocks slumped Monday on announcing first-quarter results over the weekend.
The Phoenix-based ON announced that revenue in first quarter of 2019 was $1,386.6 million, up approximately 1% from revenue in first quarter of 2018. First-quarter 2019 revenue was down approximately 8% as compared to revenue in fourth quarter of 2018.
GAAP operating margin was 12.9% and non-GAAP operating margin of 15.5%. GAAP diluted earnings per share of $0.27 and non-GAAP diluted earnings per share of $0.43
CEO Keith Jackson said "Our execution continues to be strong, despite soft business conditions. While we are facing near-term headwinds, key secular drivers powering our business remain intact, and we are well positioned to benefit from increasing semiconductor content in automotive, industrial, and cloud-power applications.
"We are prudently managing our business, and we intend to deliver strong operational results to mitigate the impact of slowing demand environment."
"We remain upbeat about our future, and we are making prudent long term investments to strengthen our position in our strategic markets and to further improve our industry-leading cost structure."
Based on product booking trends, backlog levels, and estimated turns levels, the Company anticipates revenue in second quarter of 2019 to be approximately $1,360 to $1,410 million. Revenue outlook for second quarter of 2019 includes revenue of approximately $15 million from manufacturing services provided by ON Semiconductor Aizu Co., Ltd..
The outlook for second quarter of 2019 also includes anticipated stock-based compensation expense of approximately $26 million to $28 million. Net cash paid for income taxes is expected to be $12 million to $16 million.
Shares lost 37 cents, or 1.7%, to $22.07.
