PHOENIX -- On Semiconductor Corp. today reported slightly better-than-expected revenues of $269.1 million for the first quarter, a sequential increase of 0.8% compared to $266.9 million in Q4 of 2002. The company had been projecting sequentially flat-to-slightly down revenues in the quarter.

Including restructuring charges, On Semiconductor posted a net loss of $50 million, or $0.30 per share, in the first quarter vs. a net loss of $450.9 million in Q4, which included non-recurring charges of $367 million.

The Phoenix chip maker said it had a pro forma net loss--excluding restructuring charges--of $43 million, or $0.26 per share, in Q1, which was better than Wall Street's consensus of -$0.31 per share, according to First Call/Thomson Financial.

The Motorola spin-off company said it is on track to complete cost-cutting actions to save $360 million on an annual basis by the end of 2002. The savings are based on On Semiconductor's expenditures in Q1 last year. As of the end of the first quarter of 2002, about $290 million in cost savings had been achieved, according to the company.

In addition to cutting its costs, On Semiconductor is benefiting from improved market conditions, said the company's president and CEO. "The market continues to provide us with strong indications of stabilization," said Steve Hanson.

Backlog at the end of the Q1 was $223 million, an increase of $24 million from the end of fourth quarter of 2001, said the company.

"We have become a different company over the course of the previous year and strengthened our leadership team that will chart the direction of our new company," Hanson added. "Syrus Madavi is now our executive chairman and chairman of the board," he said, referring to the former senior vice president from Texas Instruments Inc. and former CEO of Burr-Brown Corp. (see April 2 story).

"We anticipate total revenues to be between $270-$275 million in the second quarter with gross margins increasing to 25-27% and operating expenses remaining flat to slightly down from the first quarter," Hanson said. "At these revenue and expense levels for the second quarter, we expect to reduce the loss per share to $0.20-$0.24. EBITDA is expected to be in the range of $45-$50 million."