ON Semiconductor returns to 1st-quarter profit; revenue outlook higher than analysts expected

ON Semiconductor returns to 1Q profit

PHOENIX — ON Semiconductor Corp., which makes chips used in cars and cell phones, on Wednesday reported a return to first-quarter profit and issued better-than-expected revenue guidance.

The company also said its board approved the repayment of a $169.8 million loan, which will save $3.4 million in interest payments each year.

For the three months that ended April 2, the company earned $63 million, or 14 cents per share, compared with a year-ago loss of $33.9 million, or 8 cents per share. Excluding stock options expenses, ON Semiconductor said it earned 19 cents per share in the latest period.

Revenue jumped 45 percent to $550.2 million from $379.1 million in the year-ago quarter, helped in part by the acquisition of California Micro Devices in January.

Analysts surveyed by Thomson Reuters were looking for net income of 17 cents per share and revenue of $520.9 million.

For the current second quarter, ON Semiconductor said it expects revenue of $565 million to $580 million, well above analysts’ $534.2 million forecast.

Shares of ON Semiconductor jumped 26 cents, or 3.4 percent, to $8.01 in extended trading. Earlier, the stock shed 20 cents to close at $7.75.