Phoenix, AZ, February 18, 2000 - ON Semiconductor today announced fourth quarter financial results that show net product revenues of $427.8 million and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) of $102.1 million. Total year 1999 net product revenues were $1.6 billion, a 10.3% increase over 1998. Annual EBITDA was $372 million, a 47.3% increase over 1998 (excluding a $189.8 million restructuring charge in 1998).
"We saw our net product revenues grow to $427.8 million in the fourth quarter of 1999, which reflects an increase of 1.4% from the third quarter of 1999 and a 19% improvement from the fourth quarter of 1998," said Steve Hanson President and Chief Executive Officer of ON Semiconductor. "In addition, I am pleased to highlight that our EBITDA improved to $102.1 million (23.9% of our net product revenues) in the fourth quarter of 1999, which represents an increase of 4% from the third quarter of 1999 and 26.2% from the fourth quarter of 1998. This improvement in EBITDA was primarily due to the increase in net product revenues and cost savings associated with the restructuring plan initiated in the second quarter of 1998."
Total 1999 capital expenditures were approximately $127 million, approximately 80% of which were associated with our investment strategy in low-cost regions. This includes wafer fabrication investments of $28 million in Guadalajara, Mexico, $11 million in Piestany, Slovakia, and $17 million in Roznov, Czech Republic, as well as assembly and test manufacturing investments of $22 million in Leshan, China, $4 million in Roznov, Czech Republic and $17 million in various Asian factories. The Company anticipates that capital expenditures in 2000 will be approximately $150 million and will be incurred to further implement our low-cost region strategy.
In the fourth quarter of 1999, the Company introduced new products for power management applications including: a power amplifier controller for cellular phones primarily serving the European market, a power supply integrated circuit for portable electronic equipment, a switch mode power supply integrated circuit for computer monitors and low voltage power MOSFETs targeted to the networking and computing, wireless and consumer electronics markets. ON Semiconductor is also continuing to focus on improving its position in power management by refining and updating its analog integrated circuits portfolio in response to the needs of the marketplace.
The Company expanded its ECLinPSTM logic family of high-performance silicon logic integrated circuits during the fourth quarter by introducing new devices targeted to applications in the networking, high-end computer and SONET (Synchronous Optical Network) markets.
ON Semiconductor is a former division of Motorola that was acquired by Texas Pacific Group on August 4, 1999. The results reported are pro forma for periods prior to this transaction. The unaudited pro forma financial information (pro forma information) contained in this press release is based on the historical financial information of the Semiconductor Components Group of Motorola, as adjusted to give effect to the Company's recapitalization in August 1999. The pro forma information is presented as if ON Semiconductor had been an independent company for the periods presented. The pro forma information was prepared using assumptions and is provided for illustrative purposes. It does not purport to represent the company's actual financial information.
About ON Semiconductor
ON Semiconductor is one of the largest independent suppliers of semiconductor components in the world with shipments of 19 billion units in 1999. ON Semiconductor's portfolio of over 16,000 products includes an extensive line of standard analog and standard logic integrated circuits and the broadest discrete semiconductor portfolio in the industry.
[Some statements contained in this press release may be forward looking statements subject to risks and uncertainties that could cause ON Semiconductor's actual results and financial position to differ materially. These risks include the dependence on new products and technologies, the potential for increased competition, a lack of market acceptance and the cyclical nature of the semiconductor industry. Further information regarding the Company may be found in publicly available Securities and Exchange Commission filings.]
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