May5,2022 – ONSEMI (NASDAQ: on) announced its performance in the first quarter of 2022, with the following highlights:
·Record breaking revenue of US $1.945 billion, a year-on-year increase of 31%
·GAAP diluted earnings per share was $1.18, compared with $0.20 in the same period last year
·Record breaking non GAAP diluted earnings per share of $1.22, compared with $0.35 in the same period last year
·Record breaking GAAP and non GAAP gross profit margin of 49.4%, with a year-on-year increase of 1420 basis points
·The record breaking GAAP operating profit margin was 33.3%, with a month on month increase of 730 basis points and a year-on-year increase of 2480 basis points
·The record breaking non GAAP operating profit margin was 33.9%, with a month on month increase of 530 basis points and a year-on-year increase of 2060 basis points
·Free cash flow margin for the past 12 months (LTM) was 20.8%
Hassane El Khoury, President and CEO of ansenmey, said: “Our key strategy has brought sustained results to the profit margin and growth of ONSEMI. The automotive and industrial terminal markets now account for 65% of our revenue. Our first quarter performance hit a record high, with revenue increasing by 31% year-on-year, and gross profit margin increasing by 1420 basis points to a record 49.4%, highlighting our continuously reinvented business strength and product value. With the highly differentiated smart power and smart sensing product portfolio, long-term With the strong visibility brought about by the supply agreement, and in response to the general trends in the world, such as the electronization of automobile functions, advanced driving assistance systems (ADAS), energy infrastructure and factory automation, we are in a favorable position to maintain our development momentum. “
The following table gives an overview of some of the financial results for the first quarter of 2022 and the comparable period:
|(in millions of US dollars, excluding per share data)||Q1 2022||Q4 2021||Q1 2021||Q1 2022||Q4 2021||Q1 2021|
|Gross profit margin||49.4%||45.1%||35.2%||49.4%||45.2%||35.2%|
|Operating profit margin||33.3%||26%||8.5%||33.9%||28.6%||13.3%|
|Net income attributable to ansenmey||$530.2||$425.9||$89.9||$538.5||$478.0||$151.3|
|Diluted earnings per share||$1.18||$0.96||$0.20||$1.22||$1.09||$0.35|
|3 months to quarter|
|Product department||Q1 2022||Q4 2021||Q1 2021||Month on month change||Year on year change|
|Power scheme Department (PSG)||$986.7||$953.4||$747.0||3%||32%|
|Advanced solutions division (ASG)||$ 689.3||$647.3||$531.5||6%||30%|
|Intelligent sensing unit (ISG)||$ 269.0||$245.4||$203.2||10%||32%|
Q2 2022 outlook
The following table summarizes ansenmey’s GAAP and non GAAP outlook for the second quarter of 2022:
|Total of ansenmey GAAP||Special items**||Total non GAAP of ansenmey***|
|income||$1965 million to $2065 million||–||$1965 million to
|Gross profit margin||48.5% to 50.5%||–||48.5% to 50.5%|
|Operating expenses||$330million to
|Net other income and expenditure (including interest expense)||$20million to
|Diluted earnings per share||$1.13 to $1.25||$0.07 USD||$1.20 to $1.32|
|Diluted shares*||450 million||7 million||443 million|
* Diluted shares outstanding can vary as a result of, among other things, the actual exercise of options or vesting of restricted stock units, the incremental dilutive shares from the Company’s convertible senior subordinated notes, and the repurchase or the issuance of stock or convertible notes or the sale of treasury shares. In periods when the quarterly average stock price per share exceeds $20.72 for the 1.625% Notes and $52.97 for the 0% Notes, the non-GAAP diluted share count and non-GAAP net income per share include the anti-dilutive impact of the Company’s hedge transactions issued concurrently with the 1.625% Notes and the 0% Notes, respectively. At an average stock price per share between $20.72 and $30.70 for the 1.625% Notes and $52.97 and $74.34 for the 0% Notes, the hedging activity offsets the potentially dilutive effect of the 1.625% Notes and 0% Notes, respectively. In periods when the quarterly average stock price exceeds $30.70 for the 1.625% Notes, and $74.34 for the 0% Notes, the dilutive impact of the warrants issued concurrently with such notes are included in the diluted shares outstanding. GAAP and non-GAAP diluted share counts are based on either the previous quarter’s average stock price or the stock price as of the last day of the previous quarter, whichever is higher.
Special items may include: amortization of acquisition-related intangibles; expensing of appraised inventory fair market value step-up; non-recurring facility costs, 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; actuarial (gains) losses on pension plans and other pension benefits; and certain other special items, as necessary. These special items are out of our control and could change significantly from period to period. As a result, we are not able to reasonably estimate and separately present the individual impact or probable significance of these special items, and we are similarly unable to provide a reconciliation of the non-GAAP measures. The reconciliation that is unavailable would include a forward-looking income statement, balance sheet and statement of cash flows in accordance with GAAP. For this reason, we use a projected range of the aggregate amount of special items in order to calculate our projected non-GAAP operating expense outlook.
*** 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.
Ansenmey has held a conference call for the financial sector at 9 a.m. on May 2, 2022, Eastern time (ET) to discuss the release and the performance of ansenmey in the first quarter of 2022. English teleconference will be held on the company’s website http://www.onsemi.cn “Investor relations” web page for real-time broadcast. The real-time webcast will be played back on the website for 30 days after about 1 hour.
This document includes “forward-looking statements,” as that term is defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included or incorporated in this document could be deemed forward-looking statements, particularly statements about the future financial performance of onsemi, including financial guidance for the year ending December 31, 2022. 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. Certain factors that could affect our future results or events are described under Part I, Item 1A “Risk Factors” in the 2021 Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 14, 2022 (the “2021 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 2021 Form 10-K and subsequent reports filed with or furnished to the SEC before making any investment decision with respect to our securities. If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline, and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.