PHOENIX, Ariz., - Nov. 5, 2018 - ON Semiconductor Corporation (Nasdaq: ON), driving energy efficiency innovations, today announces a monumental milestone in the company’s history by reaching over $1 billion in distribution resales. ON Semiconductor distribution partners have been key to this tremendous milestone.
"ON Semiconductor and Avnet have a long and storied history together that spans more than 55 years. As one of ON Semiconductor’s top three distributors, the strength of our partnership has always been the support we provide together for global customers throughout their product lifecycle," said Phil Gallagher, global president of electronic components, Avnet. "For three years running, ON Semiconductor and Avnet have been in an elite group of electronics components companies named by Ethisphere as one of the World’s Most Ethical companies. Congratulations ON Semiconductor for surpassing this $1B in resales milestone. "
ON Semiconductor is an industry leader in leveraging the distribution channel. Over 60 percent of the company’s business results from distribution sales, and distribution remains the fastest channel to market. Over the past few years, ON Semiconductor has grown distribution sales, which has attributed to over half of our revenue dating back to 2015.
"I am incredibly proud of our agile team’s ability to deliver massive growth numbers on a yearly basis. Without the strong partnership and solutions selling capabilities of our team and distribution partners, this achievement would not have been possible," said Jeff Thomson, vice president of global distribution sales. "The support of our worldwide distribution partners is fundamental to the success of ON Semiconductor’s ongoing plans to increase market penetration and grow revenue at a faster pace than the industry. The collaborative relationships and progressive sales programs we foster with our channel partners are an integral part of this ongoing plan."
"Future Electronics has been a privileged partner of ON Semiconductor for over 30 years. We enjoy working with partners who are collaborative, open, fair and highly engaged," said Omar Baig-Mirza, Future Electronics executive vice president of sales and marketing. "ON Semiconductor is all about bringing value to our customers. We share the same objectives and, in many respects, the same business philosophies that have enabled our companies to grow together. Future Electronics has tremendous pride in being partnered with and representing ON Semiconductor worldwide."
Last week, ON Semiconductor delivered strong earnings results. Distribution contributed 63 percent of the company’s third quarter revenue. Sales to distributors accounted for approximately 60 percent of our revenues in 2017, 56 percent of our revenues in 2016, and 54 percent of our revenues in 2015, with the year-over-year increases being attributed to our acquisition of Fairchild, which had a greater distribution mix than the company’s historical business.
Alignment in business practices and trust as a global partner has been key with several distributors. "We realized that as we put in more effort, we continue to find more business potential, especially in Japan and Asia. We believe our DNA and passion for demand creation is synergistic with ON Semiconductor’s business," said Kiyoshi Nakashima, Macnica president. "Global customer base expansion is one of our main priorities, and this is well aligned with ON Semiconductor’s expectations and global footprint. Through this expansion and synergy with our line card, I strongly believe both of our organizations become stronger, and our business will grow together. "
In addition to this accomplishment, ON Semiconductor was recognized in 2018 as a Fortune 500 company, was named as one of Fortune’s 100 Fastest Growing Companies, was listed on the Dow Jones Sustainability Index and received recognition from Ethisphere for the third year in a row as one of the World’s Most Ethical Companies.
This document contains “forward-looking statements,” as that term is defined in Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, in this document could be deemed forward-looking statements, particularly statements about the percentage of sales through distribution, growth in sales through distributors, market share, and growth rates. Forward-looking statements are often characterized by the use of words such as “believes,” “estimates,” “expects,” “projects,” “may,” “will,” “intends,” “plans” or “anticipates,” or by discussions of strategy, plans or intentions. All forward-looking statements in this document are made based on our current expectations, forecasts, estimates and assumptions and involve risks, uncertainties and other factors that could cause results or events to differ materially from those expressed in the forward-looking statements. Factors that could affect our future results or events are described under Part I, Item 1A “Risk Factors” in our 2017 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 21, 2018 ("2017 Form 10-K") and from time-to-time in our other SEC reports. Readers are cautioned not to place undue reliance on forward-looking statements. We assume no obligation to update such information, except as may be required by law. You should carefully consider the trends, risks and uncertainties described in this document, our 2017 Form 10-K and other reports filed with or furnished to the SEC before making any investment decision with respect to our securities.