) launched new radio frequency (RF) components that could deal
with some of the challenges the latest generation of smartphones
is posing for manufacturers.
The demand for thinner handsets is posing design challenges
for engineers as sleek designs rule the sales of these handsets.
Moreover, the devices are used for purposes other than calling
(listening to music, using maps to move around, using social
networking sites like
), Twitter to chat and others) and therefore require extended
Thus, On Semi's new RF product may plug the hole by reducing
power consumption and increasing antenna volume without affecting
the performance of the smart device. Further, with the deployment
of 3G and 4G Long Term Evolution (LTE) networks, power efficient
sleek handsets with smaller antenna area are currently in
As per a report by IDC, 219.4 million smartphones were shipped
in 2012 where Samsung topped the list with 63.7 million units
shipped in the fourth quarter of 2012 for a 29% market share. Its
76% jump from the year-ago quarter helped it topple
), which shipped 47.8 million units, followed by Huawei,
) and others.
Therefore, it is apparent that smartphones will see strong
growth, which will boost ON Semi's power management business
ON Semi reported revenues of $725.5 million in the fourth
quarter of fiscal 2012, down 6.2% sequentially and 11.4% year
over year. Reported revenues were within management's guidance
range of $720.0-760.0 million or down 1-6% sequentially.
On a pro forma basis, ON Semi reported net income of $37.0
million or a 5.4% net income margin compared with $53.5 million
or 7.4% in the previous quarter and $58.4 million or 7.6% in the
On Semi has a Zacks Rank #2 (Buy).
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