Boston, MA 10/28/2013 (wallstreetpr) – ON Semiconductor Corporation (ON Semiconductor) designs, manufactures, and markets a portfolio of semiconductor components that address the design and specific needs of electronic systems and products.
The company is planning to lay off its employees through voluntary retirement plans. In the said restructuring activity, the company would lay off on an around 870 jobs at its Sanyo plant. By doing this, the company is expected to reduce the costs and save around $36-$45 million in the initial year. Post the completion of the activity, the company also stated that it would close down its Sanyo plant that is located in Japan, which would further turn into loss of 170 full-time and 40 contract jobs. By doing this the company is trying to turn around its acquisition, which they had acquired for $500 million in January 2011. Adding to this, the company has also canceled bonuses of its senior executive last year in August.
On Semiconductor Corp has entered into an agreement with the group of lenders while the agreement will be amended and restated. The agreement which the company has entered into in December 2011 will enable the company to borrow nearly $800 million in revolving loans systems. The company may borrow money on Libor or some bps above base rate or additional rate which will be based on company’s leveraged ratio as of now company is availing $120 million out of $800 million under new facility as company will be using this fund for general corporate purposes.
The company declares revenue guidance for the Q3 2013 as it had not match the expectation of the analysts as it estimates the revenue to $700 – $730 million in the 3Q13 as the analyst estimated the revenue to be around $737 million.
The company receive title III for the development of star tracker image sensors. It has been forgotten that this company has collaborated with SRI International Bal Aerospace & technologies Corp as the main aim of this project is to increase availability of visible imagers.