Our earnings release in this presentation includes certain non-GAAP financial measures. Reconciliations of these non-GAAP financial measures to the most direct comparables under GAAP are in our earnings release and posted separately on our website in the Investor Relations section.In the upcoming quarter, we will be attending the Pacific Crest Technology Forum on August 13 and the Citi Annual Technology Conference on September 6, as well as the Deutsche Bank Technology Conference on September 11. During the course of this conference call, we will make projections or other forward-looking statements regarding the 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 statements, are described in our Form 10-K, Form 10-Qs and other filings with the SEC. Additional factors are described in our earnings release for the second quarter of 2012. Our estimates may change, and the company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors. Now let's hear from Donald Colvin, who will provide an overview of second quarter 2012 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 second quarter of 2012 were approximately $744.8 million or approximately flat compared to the first quarter of 2012. If the legacy ON Semiconductor business recorded revenues on a sell-in basis, similar to many of our industry peers, revenues in the second quarter would've grown by approximately 6% compared to the first quarter.
During the second quarter of 2012, the company reported GAAP net income of $6.9 million or $0.02 per fully diluted share. The second quarter 2012 GAAP net income includes net charges of $58.1 million from special items, which are detailed in schedules included in our earnings press release.GAAP gross margin in the second quarter was 34.7% and non-GAAP gross margin, 35.7%. Gross margin in the second quarter benefited from approximately $3.4 million of insurance proceeds received during the quarter. Second quarter 2012 non-GAAP net income was $65 million or $0.14 per share on a fully diluted basis. We exited the second quarter of 2012 with cash, cash equivalents and short-term investments of approximately $756.4 million. During the quarter, we also reduced our total debt by approximately $119 million, which included the retirement of $96.2 million of 0 coupon convertible senior subordinated notes. At the end of the first quarter, total day sales outstanding were approximately 54 days, up approximately 2 days compared with the first quarter of 2012. ON Semiconductor's internal inventories were at approximately 123 days, up approximately $26 million. Included in our total internal inventory is approximately $70 million of bridge inventory, approximately 13 days, primarily related to the consolidation of certain factories. Distribution inventories were up sequentially by approximately 1% on a dollar basis in the second quarter and were at approximately 10.5 weeks exiting the quarter. Cash capital expenditures during the second quarter of 2012 were approximately $64 million. Now I would like to turn it over to Keith Jackson for additional comments on the business environment. Keith D. Jackson Thanks, Don. Now for an overview of our end markets. During the second quarter of 2012, our end-market splits were as follows: the automotive end market represented approximately 26% of sales; the consumer electronics end market represented approximately 22% of sales; the industrial, military, aerospace and medical end markets represented approximately 19% of sales; the computing end market represented approximately 20% of sales; and the communications end market, which includes both wireless and networking, represented approximately 13% of sales. Read the rest of this transcript for free on seekingalpha.com