Now let's hear from Donald Colvin, who will provide an overview of the fourth quarter and 2011 annual results. Donald?
Donald A. Colvin
Thank you, Ken, and thanks to everyone joining us today. ON Semiconductor Corporation today announced that total revenues in the fourth quarter of 2011 were approximately $767.9 million, a decrease of approximately 14% from the third quarter of 2011.
During the fourth quarter of 2011, the company reported a GAAP net loss of $8.8 million or $0.02 per fully diluted share.
The fourth quarter 2011 GAAP net income included net charges of $67.2 million or $0.15 per fully diluted share from special items, which are detailed in schedules included in our earnings press release.
GAAP gross margin in the fourth quarter was 31.1%. Non-GAAP gross margin in the fourth quarter was 32.9%. Fourth quarter 2011 non-GAAP net income was $58.4 million or $0.13 per share on a fully diluted basis.
We exited the fourth quarter of 2011 with record cash, cash equivalents and short-term investments of approximately $901.5 million.
At the end of the fourth quarter, total sales outstanding were approximately 54 days, down approximately 1 day compared with the third quarter of 2011.
ON Semiconductor's internal inventories were approximately 110 days. Included in our total internal inventory is approximately $41 million of bridge inventory, primarily related to the consolidation of certain factories.
Distribution inventories were down approximately 6% on a dollar basis in the fourth quarter and were at approximately 12.5 weeks exiting the fourth quarter. We expect inventory in distributors to continue to decline on a dollar basis in the fourth quarter of 2012.
Cash capital expenditures during the fourth quarter of 2011 were approximately $57 million, bringing 2011 capital expenditures to approximately $316 million.
Now I would like to turn it over to Keith Jackson for additional comments on the business environment.