Ken RizviThank you, Stephanie. Good afternoon, and thank you for joining ON Semiconductor Corporation's Fourth Quarter and 2011 Annual Results Conference Call. I'm joined today by Keith Jackson, our President and CEO; and Donald Colvin, our CFO. This call is being webcast on the Investor Relations section of our website at onsemi.com, and a replay will be available for approximately 30 days following this conference call along with our earnings release for the fourth quarter and year ended 2011. The script for today's call is posted on our website. Our earnings release in this presentation includes certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most directly comparable measures under GAAP are in our earnings release and posted on our website in the Investor Relations section. In the upcoming quarter, we will be attending the Morgan Stanley Technology, Media, Telecom Conference on February 28 and the Susquehanna Financial Group's semiconductor conference on March 6 and the Wedbush Technology, Media & Telecom Conference on March 7. During the course of this conference call, we will make projections and other forward-looking statements regarding future events or the future financial performance of the company. The words believe, estimate, anticipate, intend, expect, plan or similar expressions are intended to identify forward-looking statements. We wish to caution that such statements are subject to risks and uncertainties that could cause actual events or results to differ materially. Important factors relating to our business, including factors that could cause actual results to differ from our forward-looking guidance, are described in our Form 10-K, 10-Qs and other filings with the SEC. Additional factors are described in our earnings release for the fourth quarter and 2011, which include uncertainties regarding the ongoing impact of the flood in Thailand. Our estimates may change and the company assumes no obligation to update forward-looking statements to reflect actual results, change assumptions or other factors.
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.
Keith D. JacksonThanks, Don. Now for an overview of our end markets. During the fourth quarter of 2011, our end market splits were as follows. The automotive end market represented approximately 23% of sales. The consumer electronics end market represented approximately 23% of sales. The industrial, military, aerospace and medical end markets represented approximately 21% of sales. And the computing end market represented approximately 18% of sales. And the communications end market, which includes wireless and networking, represented approximately 15% of sales. Read the rest of this transcript for free on seekingalpha.com