Skyworks Solutions, Inc. (NASDAQ: SWKS), an innovator of high
performance analog and mixed signal semiconductors enabling mobile
connectivity, today announced first fiscal quarter 2008 results for
the period ended December 28, 2007. Revenue for the quarter was
$210.5 million, up 11 percent sequentially and better than the
company�s guidance for 9 percent growth. On a non-GAAP basis,
operating income for the first fiscal quarter was $28.6 million, up
26 percent sequentially from the $22.7 million reported in the
fourth fiscal quarter of 2007, while net income was $27.9 million
versus $23.0 million, respectively. Non-GAAP diluted earnings per
share was $0.17 -- $0.01 ahead of consensus estimates and a record
for the company. On a GAAP basis, operating income for the first
fiscal quarter was $21.0 million compared to $18.2 million in the
prior quarter, while net income was $19.1 million versus $22.0
million, respectively. GAAP diluted earnings per share was $0.12.
�Skyworks delivered solid results in the December quarter with
operational execution translating into improved profitability,�
said David J. Aldrich, president and chief executive officer of
Skyworks. �Our linear products momentum, share gains at key handset
OEMs and increased multimode sales fueled double-digit top-line
growth and both record earnings per share and cash flow generation.
The Skyworks team continues to make significant progress towards
our stated goal of becoming the market leader in semiconductors
enabling mobile connectivity.� First Fiscal Quarter Highlights
Expanded gross margin to 39.8 percent on a non-GAAP basis (39.1
percent on a GAAP basis) Achieved a 13.6 percent non-GAAP operating
margin (10.0 percent on a GAAP basis) Generated a record $55
million of cash flow from operations Retired $49 million of
convertible debt Introduced custom RF solutions for automatic meter
reading applications Increased shipments of GSM and WCDMA base
station RF ICs to Huawei, a rapidly emerging leader in network
infrastructure Ramped multimode front-end solutions at Samsung
Enhanced multimode FEM market position by increasing EDGE and WCDMA
shipments with a new tier-one handset OEM Launched front-end
modules at Research in Motion Extended partnership with MediaTek,
one of the world�s fastest growing solution providers in China, to
now include power amplifiers and front-end modules Second Fiscal
Quarter 2008 Outlook �We expect to largely offset handset
seasonality with growth from our linear products portfolio and
multimode handset content gains,� said Donald W. Palette, vice
president and chief financial officer of Skyworks. �Accordingly, we
anticipate delivering $200 million in revenue and diluted earnings
per share of $0.15 on a non-GAAP basis in the seasonally low March
quarter.� Estimated non-GAAP diluted earnings per share excludes
approximately $5 million of FASB Statement No. 123(R)-related
expenses. Non-GAAP results, which are a supplement to financial
results based on GAAP, exclude certain charges including
equity-based compensation, amortization of intangible assets,
baseband exit charges, and non-recurring items. The company
believes these non-GAAP financial measures provide useful
information to both management and investors by excluding certain
charges and non-recurring items that may not be indicative of
Skyworks� ongoing operations and economic performance. Skyworks�
First Fiscal Quarter 2008 Conference Call Skyworks will host a
conference call with analysts to discuss its first fiscal quarter
2008 results and business outlook today at 5:00 p.m. Eastern time
(ET). To listen to the conference call via the Internet, please
visit the investor relations section of Skyworks' Web site. To
listen to the conference call via telephone, please call
888.715.1389 (domestic) or 913.312.0689 (international),
confirmation code: 4895435. Playback of the conference call will
begin at 9:00 p.m. ET on January 17, and end at 9:00 p.m. ET on
January 24, 2008. The replay will be available on Skyworks' Web
site or by calling 888.203.1112 (domestic) or 719.457.0820
(international); passcode: 4895435. About Skyworks Skyworks
Solutions, Inc. is an innovator of high performance analog and
mixed signal semiconductors enabling mobile connectivity. The
company's power amplifiers, front-end modules and direct conversion
radios are at the heart of many of today's leading-edge multimedia
handsets. Leveraging core technologies, Skyworks also offers a
diverse portfolio of linear products that support automotive,
broadband, cellular infrastructure, industrial and medical
applications. Headquartered in Woburn, Mass., Skyworks is worldwide
with engineering, manufacturing, sales and service facilities
throughout Asia, Europe and North America. For more information,
please visit Skyworks� Web site at: www.skyworksinc.com. Safe
Harbor Statement This news release includes "forward-looking
statements" intended to qualify for the safe harbor from liability
established by the Private Securities Litigation Reform Act of
1995. These forward-looking statements include information relating
to future results and expectations of Skyworks (including certain
projections and business trends). Forward-looking statements can
often be identified by words such as "anticipates," "expects,"
"intends," "believes," "plans," "may," "will," "continue," similar
expressions, and variations or negatives of these words. All such
statements are subject to certain risks and uncertainties that
could cause actual results to differ materially and adversely from
those projected, and may affect our future operating results,
financial position and cash flows. These risks and uncertainties
include, but are not limited to: global economic and market
conditions, such as the cyclical nature of the semiconductor
industry and the markets addressed by our, and our customers',
products; our ability to develop, manufacture and market innovative
products in a highly price competitive and rapidly changing
technological environment; fluctuations in our manufacturing yields
due to our complex and specialized manufacturing processes; our
reliance on a several key customers for a large percentage of our
sales; fluctuations in the manufacturing yields of our third party
semiconductor foundries and other problems or delays in the
fabrication, assembly, testing or delivery of our products; the
availability and pricing of third party semiconductor foundry,
assembly and test capacity and raw materials; our ability to timely
and accurately predict market requirements and evolving industry
standards, and to identify opportunities in new markets; losses or
curtailments of purchases or payments from key customers, or the
timing of customer inventory adjustments; our ability to rapidly
develop new products and avoid product obsolescence; our ability to
retain, recruit and hire key executives, technical personnel and
other employees in the positions and numbers, with the experience
and capabilities, and at the compensation levels needed to
implement our business and product plans; lengthy product
development cycles that impact the timing of new product
introductions; the timing, rescheduling or cancellation of
significant customer orders and our ability, as well as the ability
of our customers, to manage inventory; unfavorable changes in
product mix; the quality of our products and any remediation costs;
shorter than expected product life cycles; problems or delays that
we may face in shifting our products to smaller geometry process
technologies and in achieving higher levels of design integration;
economic, social and political conditions in the countries in which
we, our customers or our suppliers operate, including security and
health risks, possible disruptions in transportation networks and
fluctuations in foreign currency exchange rates; our ability to
continue to grow and maintain an intellectual property portfolio
and obtain needed licenses from third parties; and the
uncertainties of litigation, including disputes over intellectual
property, as well as other risks and uncertainties, including but
not limited to those detailed from time to time in our filings with
the Securities and Exchange Commission. These forward-looking
statements are made only as of the date hereof, and we undertake no
obligation to update or revise the forward-looking statements,
whether as a result of new information, future events or otherwise.
Note to Editors: Skyworks, Skyworks Solutions, Helios and Intera
are trademarks or registered trademarks of Skyworks Solutions, Inc.
or its subsidiaries in the United States and in other countries.
All other brands and names listed are trademarks of their
respective companies. SKYWORKS SOLUTIONS, INC. UNAUDITED GAAP
CONSOLIDATED STATEMENT OF OPERATIONS � � � � � Quarter Ended � Dec.
28, Dec. 29, (in thousands) � 2007 � � 2006 � � Net revenues $
210,533 $ 196,030 Cost of goods sold � 128,195 � � 120,714 � Gross
profit 82,338 75,316 � Operating expenses: Research and development
34,094 30,412 Selling, general and administrative 25,287 24,028
Restructuring & other charges - 5,473 Amortization of
intangibles � 1,932 � � 536 � Total operating expenses 61,313
60,449 � Operating income 21,025 14,867 � Interest expense (2,208 )
(3,249 ) Other income, net � 2,050 � � 2,155 � Income before income
taxes 20,867 13,773 Provision for income taxes � 1,789 � � 1,736 �
� � Net income $ 19,078 � $ 12,037 � � Earnings per share: Basic $
0.12 $ 0.07 Diluted $ 0.12 $ 0.07 Weighted average shares: Basic
160,319 161,183 Diluted 162,836 162,880 SKYWORKS SOLUTIONS, INC.
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES � � Quarter Ended �
Dec. 28, Dec. 29, (in thousands) 2007 2006 � GAAP operating income
$ 21,025 $ 14,867 Share-based compensation expense [a] 5,007 2,026
Inventory step-up recognition [b] 615 - Restructuring & other
charges [c] - 5,473 Amortization of intangible assets [b] � 1,932 �
536 Non-GAAP operating income $ 28,579 $ 22,902 � Quarter Ended �
Dec. 28, Dec. 29, (in thousands) 2007 2006 � GAAP net income $
19,078 $ 12,037 Share-based compensation expense [a] 5,007 2,026
Inventory step-up recognition [b] 615 - Restructuring & other
charges [c] - 5,473 Amortization of intangible assets [b] 1,932 536
Tax adjustments [d] � 1,221 � 1,343 Non-GAAP net income $ 27,853 $
21,415 � Quarter Ended � Dec. 28, Dec. 29, 2007 2006 � GAAP net
income per share, diluted $ 0.12 $ 0.07 Share-based compensation
expense [a] 0.03 0.01 Inventory step-up recognition [b] - -
Restructuring & other charges [c] - 0.04 Amortization of
intangible assets [b] 0.01 - Tax adjustments [d] � 0.01 � 0.01
Non-GAAP net income per share, diluted $ 0.17 $ 0.13 � � [a] These
charges represent expense recognized in accordance with FASB
Statement No. 123(R), Share-Based Payment. Approximately $0.8
million, $1.2 million and $3.0 million were included in cost of
goods sold, research and development expense and selling, general
and administrative expense, respectively, for the three months
ended December 28, 2007. Approximately $0.1 million, $0.5 million
and $1.4 million were included in cost of goods sold, research and
development expense and selling, general and administrative
expense, respectively, for the three months ended December 29,
2006. � [b] During the quarter ended December 28, 2007, Skyworks
acquired Freescale Semiconductor's power amplifier and front-end
module product line. The purchase accounting charges recognized
during the quarter include a $0.6 million charge to cost of sales
related to the sale of acquisition related inventory and $1.4
million amortization of acquisition related intangibles.
Amortization expense of $0.5 million relates to a previous business
combination. � [c] On October 2, 2006, the Company announced that
it was exiting its baseband product area in order to focus on its
core business encompassing linear products, power amplifiers,
front-end modules and radio solutions. Restructuring and other
charges recorded during the first quarter of fiscal 2007 primarily
consisted of $1.4 million related to the write-down of technology
licenses and design software associated with the baseband product
area and $4.1 million related to lease obligations associated with
the shut-down of certain locations associated with the baseband
product area. � [d] During the three months ended December 28, 2007
and December 29, 2006, these charges primarily represent a non-cash
tax charge related to the utilization of pre-merger deferred tax
assets. � The above non-GAAP measures are based upon our unaudited
consolidated statements of operations for the periods shown. These
non-GAAP financial measures are provided to enhance the user's
overall understanding of our current financial performance and our
prospects for the future. Specifically, we believe the non-GAAP
financial measures provide useful information to both management
and investors by excluding certain charges and non-recurring items
that we believe are not indicative of our ongoing operations and
economic performance. Additionally, since we have historically
reported non-GAAP results to the investment community, the
inclusion of non-GAAP financial measures provides consistency in
our financial reporting. Further, these non-GAAP financial measures
are one of the primary indicators management uses for planning and
forecasting in future periods. The presentation of this additional
information should not be considered in isolation or as a
substitute for results prepared in accordance with accounting
principles generally accepted in the United States. SKYWORKS
SOLUTIONS, INC. UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET � �
Dec. 28, Sept. 28, (in thousands) 2007 2007 Assets Current assets:
Cash and cash equivalents $ 205,016 $ 248,079 Short-term
investments 2,464 5,700 Accounts receivable, net 166,647 167,319
Inventories 85,912 82,109 Prepaid expenses and other current assets
9,299 10,511 Property, plant and equipment, net 162,497 153,516
Goodwill and intangible assets, net 517,949 494,332 Other assets �
27,999 � 28,342 Total assets $ 1,177,783 $ 1,189,908 � Liabilities
and Equity Current liabilities: Credit facility $ 50,000 $ 50,000
Convertible notes - 49,335 Accounts payable 69,227 56,417 Accrued
liabilities and other current liabilities 40,149 41,471 Long-term
debt 200,000 200,000 Other long-term liabilities 7,305 6,338
Stockholders' equity � 811,102 � 786,347 Total liabilities and
equity $ 1,177,783 $ 1,189,908
Skyworks Solutions (NASDAQ:SWKS)
Historical Stock Chart
From Jun 2024 to Jul 2024
Skyworks Solutions (NASDAQ:SWKS)
Historical Stock Chart
From Jul 2023 to Jul 2024