ON Semiconductor (ONNN) and Studio One Media, Inc. (SOMD) have entered into an agreement to develop integrated circuits (ICs) to improve the audio quality of all consumer electronic devices.
Scottsdale, AZ-based Studio One Media, Inc., founded in 1988, develops audio and video technologies for professional as well as personal use. The company offers MyStudio HD Recording Studios, a self-contained high definition interactive audio/video recording studio designed for installation in shopping malls and other high traffic areas.
On the other hand, ON Semiconductor’s product portfolio consists of energy-efficient power and signal management, logic, discrete and custom solutions. The company serves a broad base of end-user markets, including automotive, communications, computing, consumer, medical, industrial, smart grid and military/aerospace.
The collaboration will enable both the companies to offer superior audio technology solutions for various consumer electronic devices, including headphones, televisions, sound bars, computers, home and car stereos, tablets and mobile phones, thus meeting end users’ demands effectively. Additionally, these audio ICs will be used in several industrial applications, including business phone systems, police and military radios, intercom systems and many other product categories.
In the last concluded quarter, ON Semiconductor reported revenues of $718.0 million, up 0.4% sequentially and 5.6% year over year. Reported revenues were above the company’s expected range of $675.0–$705.0 million and the Zacks Consensus Estimate of $692.0 million.
On a pro-forma basis, ON Semiconductor reported a net income of $74.3 million or 17 cents per share compared with $37.0 million or 8 cents per share in the year-ago quarter.
ON Semiconductor carries a Zacks Rank #2 (Buy). Other semiconductor stocks that are worth considering include CSR plc (CSRE) and M/A-Com Technology Solutions Holdings (MTSI). Both the stocks carry the same Zacks Rank as ON Semiconductor.
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