On a non-GAAP basis, the semiconductor firm earned $0.42 per share on revenue of $1.35 billion, representing a 9% decline in EPS and a 7% decline in revenue. On a GAAP basis, EPS declined 31% year-over-year to $0.24. The market had expected ON to earn $0.42 per share on revenue of $1.38 billion.
“Business conditions continue to be soft, and we expect to see sub-seasonal demand trends in the near-term, as geopolitical factors will likely continue to weigh on demand,” said CEO Keith Jackson.
Based on product booking trends, backlog levels, and estimated turns levels, the company anticipates 2019 third quarter revenue to be approximately $1.36 billion to $1.41 billion. Gross margin is expected to be 35.2% to 36.2% on a GAAP basis and 36.7% to 37.7% on a non-GAAP basis.
During the second quarter, ON Semiconductor signed a definitive agreement to acquire, in a phased transaction, a 300mm fab located at East Fishkill, NY and related assets from GLOBALFOUNDRIES. The company also closed its previously announced acquisition of Quantenna Communications, a provideer of connectivity semiconductor solutions for Wi-Fi, in the second quarter.
ON stock had gained 21% since the beginning of 2019, while it had dropped 7% in the trailing 12 months.