Tuesday, August 18, 2015

ON Semi Plans Comeback to Smartphone Cameras

SeekingAlpha's ON Semiconductors Q2 2015 earnings call transcript has few interesting statements about the company's planned comeback to the camera phone market.

Ian Ing - MKM Partners:
"Image sensors you talked about strengthened surveillance in automotive, but where are you in terms of turning more selective in the commodity types of market like handsets and consumer is that something that’s still has to play out?"

Keith D. Jackson, CEO:
"Actually we’re there, we’re participating the majority of everything in the handset piece which is the most commoditized is at the 13 megapixel rates, where we can still get some differentiation and in the more consumer pieces that you might see in the homes also again we’ve got instead of higher resolution products there and the lower resolution products are tailing off."

Few other interesting quotes:

"Revenue for our Image Sensor Group was approximately $173 million as compared to approximately $171 million for the first quarter. Aptina was nicely accretive to our non-GAAP EPS and we remain on track to generate $0.08 of non-GAAP EPS accretion from Aptina in the current year."

"We continue to gain increasing traction with our image sensors in the automotive market. If you are seeing double-digit growth in attach rates for A-dash for model year 2016 vehicles. Our design win momentum continues to accelerate and we’ve secured additional design wins for A-dash and rear view cameras with leading OEMs in Americas, Europe and South Korea. We’re seeing higher than expected attach rate for our rear view cameras driven by consumer demand ahead of government regulations and mandates."

"We are seeing strong traction for our fast focused high resolution image sensors in the sports action camera market. Adoption of our three megapixel and two megapixel image sensors for digital video recorders for cars in China is accelerating."

"Robust growth in the security market again generated strong demand for our image sensing solutions during the quarter. As expected, we saw strong volumes in China as the country began to implement a large scale transition to 1080p security cameras which will utilize our two megapixel, 1/3-Inch and three megapixel 1/3-Inch sensors. We continue to see good penetration globally in the top-tier machine vision camera manufacturers for the Python VGA CMOS image sensor devices, which reported a 23% sales increase compared to the first quarter.

In the medical market, we had a record quarter with strong growth from our imaging and hearing aid customers.
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1 comment:

  1. Interesting that Aptina is contributing to their EPS! Finally! Aptina had excellent technology, and great engineers but suffered from crucial management mis-steps and lethargy. Let's hope that with strong management from ON it can recover substantially its lost market share

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