On Semiconductor ( ONNN - Analyst Report ) has recently launched an array of products such as differential clock and data, switches and protection devices that will support Peripheral Component Interconnect Express (PCIe) applications in communications gear including routers, servers, networking equipment and ATE.

PCIe is a computer expansion card standard used in consumer, server and industrial applications. It was developed through a collaboration between Intel Corporation ( INTC - Analyst Report ) , Dell Inc. ( DELL - Analyst Report ) , Hewlett-Packard Company ( HPQ - Analyst Report ) and IBM Corp. ( IBM - Analyst Report ) in 2004.

The supporting devices being introduced by On Semi include low-noise clocks that operate at low power; thus also minimizing heat dissipation. Supported by new transient voltage suppressors, devices would also be protected from electrostatic discharge (ESD), thus preventing loss of data.

PCIe is gaining importance due to its scalability and flexibility features and it is being rapidly adopted by communications systems. OnSemi may be successful in attracting new customers in this segment going forward.

ON Semi reported revenues of $744.8 million in the second quarter of fiscal 2012, flat sequentially, but down 17.8% year over year. Reported revenues were in the middle of management’s guidance range of $720.0-760.0 million, or down 1-6% sequentially.

On a pro forma basis, the company reported a net income of $51.1 million, or a 6.9% net income margin compared with $52.4 million, or 6.8% in the previous quarter and $113.2 million or 13.0% in the first quarter of 2012.

Currently, On Semiconductor has a Zacks #3 Rank, implying a Hold rating in the short-term (1-3 months).