ON Semiconductor (ONNN - Analyst Report) launched two image signal processor integrated circuits (ICs), LC749000PT and LC749000AT for automotive and consumer applications.
The LC749000PT (for the automotive sector) can be used in a car’s reversing camera applications and navigation systems. The LC749000AT for the consumer sector will be used for video monitoring security systems where small LCD screens are required.
These ICs save energy and also support advanced signal technology, providing better compressed images in the small LCD screens.
Liquid crystal display (LCD) is an immensely popular consumer device and is used in a wide range of applications, such as in computer monitors, televisions, instrument panels and aircraft cockpit displays. LCD is also used in consumer devices such as video players, gaming devices, clocks, watches, calculators and telephones.
Currently, LCD panels are found in various sizes starting from 2.5 to 32 inches. Resolution of the screen is hampered if the screen sizes are smaller. ON Semi’s ICs can plug this loophole by enabling the display of sharper and clearer pictures on a smaller LCD panel.
Automobile manufacturers such as General Motors (GM - Analyst Report) and Toyota Motors Corp. (TM - Analyst Report) provide features like rear-view cameras and government mandates in the U.S. will ensure increased adoption. According to iSuppli, shipments of automotive displays may reach 116.8 million units by 2016 growing at a double-digit rate in each year. Thus, there is a good opportunity for ON Semi to supply these ICs to manufacturers and suppliers of LCD display panels.
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 within 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 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.
On Semi has a Zacks Rank #2 (Buy).