ON Semiconductor Corp
ON Semiconductor Corporation is headquartered in Phoenix, AZ and was founded in 1999. The company designs, manufactures, and markets semiconductor components. It has 3 main business segments, Power Solutions, Advanced Solutions, and Intelligent Sensing.
The Power Solution segment offers products used in power conversion, power switching, circuit protection, signal amplification, signal conditioning, and other power-related functions. The Advance Solution segment deals with ASICs, ASSPs, analog, mixed-signal, advance logic, and Wi-FI solutions for industries like auto, aerospace, industrial, computing, and consumer goods. The Intelligent Sensing segment designs and develops sensors, single photon detectors, image signal processors, actuator drivers, and SiPM and SPAD arrays for multiple industries.
ON Semiconductor had reported its Q12020 earnings a few days ago. Revenues had declined by 7.8% on a Y-o-Y basis. Non-GAAP earnings per share were 10 cents a share, significantly lower than Q12019’s number of $0.43 a share. However, the stock is up more than 26% since the earnings call.
Recently, the company’s board of directors adopted a short-term stockholder rights plan. The rights plan is designed to protect shareholders from the event that a single person or group attempts to gain control of ON Semiconductor through the open-market accumulation of shares. The rights plan is believed to be a response to a recent disclosure by Koch Industries to acquire more than 10% of the company’s outstanding shares.
The rights plan will allow the board of directors of ON Semiconductor reasonable time to make informed decisions regarding any takeover attempts. These developments come at a time when market volatility is high and there is heightened uncertainty due to the pandemic.
ON Semiconductor stock closed at $19.82 on 1st July 2020, up 18.12% for the past month.
