ON Semiconductor Corporation (ON) KeyBanc Technology Leadership Forum - (Transcript)

ON Semiconductor Corporation (NASDAQ:ON) KeyBanc Technology Leadership Forum Call August 5, 2024 12:30 PM ET

Company Participants

Hassane El-Khoury - President, Chief Executive Officer and Director
Thad Trent - Executive Vice President and Chief Financial Officer

Conference Call Participants

John Vinh - KeyBanc Capital Markets

John Vinh

Good morning, everybody. My name is John Vinh. I cover semis here at KeyBanc. We're pleased to have the management team of ON Semi here. We have Hassane El-Khoury, CEO; and Thad Trent, CFO. Welcome, guys.

Hassane El-Khoury

Thank you.

Thad Trent

Thank you.

Question-and-Answer Session

Q - John Vinh

Obviously, front and center, everyone is talking about the cycle. It seems like you potentially finally found a bottom here. You're calling for a sequential growth into 3Q and then you're still calling for an L-shaped recovery. What are the signs that you're looking for an L-shaped recovery? And what does an ON Semi L-shaped recovery look like?

Hassane El-Khoury

So when you talk, look, when we look at quarter-on-quarter, we forget about the guide, which is up slightly. We look more for a demand trend that are more sustainable. We've talked about demand stabilizing. We've talked about demand actually recovering in certain pockets in industrial. We talked about auto industrial being flat to slightly up. But net-net, what we're looking for is a sustainable demand signal that goes beyond a quarter. That's when we will start taking action and changing our kind of cautious approach that got us to sustain our financial predictability in our margin. That suited very, very well. We're going to maintain that style of management until we see a more sustainable sign other than stabilization. But we'll take stabilization, obviously, from where we were. The next step is just monitoring across market, not just within a market green shoot, but across market signs of recovery.