ON Semiconductor Corporation offered an update to its first-quarter 2020 revenue scope. This update includes the potential impact of change in enterprise conditions due to the novel coronavirus (COVID-19).
Public health scope due to COVID-19 is uncertain and continues to evolve, and the business impact of those conditions are troublesome to forecast. The revised guidance is according to the information available thus far. ON Semiconductor follows no obligation to update information in this launch based on modifications occurring after the date of this release.
ON Semiconductor declared that it aims to take restructuring steps during the first quarter of 2020 to realign its investments. These restructuring shifts are expected to lead to annual cost savings of roughly $90 million, the majority of which is anticipated to be in operating expenses. These cost savings can be in addition to approximately $25 million of anticipated annual cost savings that have been declared February 3 on the earnings conference call for Q4 2019.
The corporate expects to achieve targeted cost savings by 2020-end on a quarterly run-rate basis. The firm believes that these restructuring measures ought to enable it to optimize its cost structure and speed up its progress towards its target financial model.