Summary by Moomoo AI
ON Semiconductor (ON) reported its annual financial results, revealing a slight revenue decline of 0.9% year-over-year, from $8,326.2 million in 2022 to $8,253.0 million in 2023. Despite the revenue dip, the company's net income rose to $2,183.7 million in 2023, up from $1,902.2 million in the previous year. Operating income also saw an increase, reaching $2,538.7 million in 2023 compared to $2,360.0 million in 2022. The company attributed the growth in operating and net income to the absence of impairment charges related to the QCS wind down that occurred in 2022. However, gross margin contracted by 190 basis points to 47.1% in 2023 from 49.0% in 2022. ON Semiconductor also executed a share repurchase program, buying back $564.0 million worth of shares in 2023. Looking ahead, the company is actively managing its manufacturing capacity and spending to align with the forecasted demand for 2024. ON Semiconductor is also focusing on cost-saving initiatives and strategic actions, such as exiting non-strategic product lines and aligning manufacturing capacity with external demand, to mitigate the impact of increased manufacturing and operating costs.