ON Semiconductor Reports Second Quarter of 2010 Results

Second quarter 2010 non-GAAP net income was $103.4 million, or $0.24 per share on a fully diluted basis and includes stock based compensation expense. First quarter 2010 non-GAAP net income was $85.3 million, or $0.19 per share on a fully diluted basis and includes stock-based compensation expense. A reconciliation of these non-GAAP financial measures (and other non-GAAP measures used elsewhere in this release, such as non-GAAP gross margin and adjusted EBITDA) to the company’s most directly comparable measures prepared in accordance with U.S. GAAP are set forth in the attached schedules and on our website at www.onsemi.com.

On a mix-adjusted basis, average selling prices in the second quarter of 2010 were generally flat when compared to the first quarter of 2010. GAAP gross margin in the second quarter was 41.8 percent. Non-GAAP gross margin in the second quarter of 2010 was 42.5 percent and includes stock based compensation expense. GAAP gross margin in the second quarter included a net charge of approximately $3.9 million, or approximately 70 basis points, from special items. The special items details can be found in the attached schedules.

Adjusted EBITDA for the second quarter of 2010 was $143.1 million and includes stock-based compensation expense. Adjusted EBITDA for the first quarter of 2010 was $127.3 million and includes stock-based compensation expense.

“During the second quarter of 2010, we achieved several milestones, including recording our highest quarterly revenues, gross margin percent and net cash from operating activities in the company’s history,” said Keith Jackson, ON Semiconductor president and CEO. “We also successfully prepaid and terminated our Senior Secured Credit Facilities totaling approximately $170 million and exited the quarter with the lowest net debt position in the company’s history at approximately $286 million. In addition to our strong financial results, we signed a definitive purchase agreement to acquire SANYO Semiconductor, moving us closer to our vision of becoming a premier global supplier of high-performance, energy efficient, silicon solutions for green electronics. We look forward to merging this business into ours and continuing our established track record of successfully integrating acquisitions over the last several years. Given SANYO Semiconductor’s similar product profile, our proven capabilities as an industry consolidator, and our established presence in Japan, we believe we can successfully migrate their financial metrics to be more in-line with our recent financial performance. We believe the transaction represents a tremendous opportunity for both ON Semiconductor and SANYO Semiconductor, our employees, our customers and our shareholders.”