Skyworks Solutions, Inc. (NASDAQ: SWKS), an innovator of high
performance analog semiconductors enabling a broad range of end
markets, today updated its financial outlook for the fourth quarter
of fiscal 2012 given strong program ramps across its high
performance analog and mobile Internet businesses, as well as
continued operating leverage within its business model.
The Company now anticipates revenue of $420 million for the
fourth quarter of fiscal 2012, on the high end of its previous
guidance range of $415 to $420 million, which would represent an 8
percent sequential increase. Skyworks also expects to deliver
non-GAAP diluted earnings per share of $0.52 versus guidance of
$0.50 to $0.51, which would represent a 16 percent sequential
increase for the fourth quarter of fiscal 2012. The company’s
previous guidance was provided on July 18, 2012 during its third
quarter fiscal 2012 conference call.
2012 Skyworks Analyst Day
Skyworks is hosting an Analyst Day today in Boston beginning at
9:30 a.m. Eastern time. Members of the executive team will provide
a business overview, discuss market and technology trends,
operational plans and financial objectives.
To listen to the Webcast via the Internet, please visit the
Investor section of Skyworks’ Web site at www.skyworksinc.com.
For information regarding the use of non-GAAP EPS estimates in
this press release, please refer to the Discussion Regarding the
Use of Non-GAAP Financial Measures set forth below.
About Skyworks
Skyworks Solutions, Inc. is an innovator of high performance
analog semiconductors. Leveraging core technologies, Skyworks
supports automotive, broadband, cellular infrastructure, energy
management, GPS, industrial, medical, military, wireless
networking, smartphone and tablet applications. The Company’s
portfolio includes amplifiers, attenuators, circulators, detectors,
diodes, directional couplers, front-end modules, hybrids,
infrastructure RF subsystems, isolators, lighting and display
solutions, mixers/demodulators, optocouplers, optoisolators, phase
shifters, PLLs/synthesizers/VCOs, power dividers/combiners, power
management devices, receivers, switches and technical ceramics.
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 without limitation information
relating to future results and expectations of Skyworks (including
without limitation certain projections and business trends).
Forward-looking statements can often be identified by words such as
"anticipates," "expects," "forecasts," "intends," "believes,"
"plans," "may," "will," or "continue," and similar expressions and
variations or negatives of these words. All such statements are
subject to certain risks, uncertainties and other important factors
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, uncertainties and other important factors include,
but are not limited to: uncertainty regarding global economic and
financial market conditions; the susceptibility of the wireless
semiconductor industry and the markets addressed by our, and our
customers', products to economic downturns; the timing,
rescheduling or cancellation of significant customer orders and our
ability, as well as the ability of our customers, to manage
inventory; losses or curtailments of purchases or payments from key
customers, or the timing of customer inventory adjustments; the
availability and pricing of third party semiconductor foundry,
assembly and test capacity, raw materials and supplier components;
changes in laws, regulations and/or policies in the United States
that could adversely affect financial markets and our ability to
raise capital; our ability to develop, manufacture and market
innovative products in a highly price competitive and rapidly
changing technological environment; whether we are able to
successfully integrate Advanced Analogic Technologies’ operations;
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; fluctuations in
our manufacturing yields due to our complex and specialized
manufacturing processes; delays or disruptions in production due to
equipment maintenance, repairs and/or upgrades; our reliance on
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; our
ability to timely and accurately predict market requirements and
evolving industry standards, and to identify opportunities in new
markets; uncertainties of litigation, including potential disputes
over intellectual property infringement and rights, as well as
payments related to the licensing and/or sale of such rights; 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; 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;
and our ability to continue to grow and maintain an intellectual
property portfolio and obtain needed licenses from third parties,
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 and Skyworks Solutions 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.
DISCUSSION REGARDING THE USE OF NON-GAAP FINANCIAL
MEASURES
This press release contains some or all of the following
financial measures which have not been calculated in accordance
with United States Generally Accepted Accounting Principles
("GAAP"): (i) non-GAAP gross profit and gross margin, (ii) non-GAAP
operating income and operating margin, (iii) non-GAAP net income,
and (iv) non-GAAP net income per share (diluted). We derive such
non-GAAP financial measures by excluding certain expenses and
other items from the respective GAAP financial measure that is most
directly comparable to each non-GAAP financial measure. Management
uses these non-GAAP financial measures to evaluate our operating
performance and compare it against past periods, make operating
decisions, forecast for future periods, compare operating
performance against peer companies and determine payments under
certain compensation programs. These non-GAAP financial measures
provide management with additional means to understand and evaluate
the operating results and trends in our ongoing business by
eliminating certain non-recurring expenses (which may not occur in
each period presented) and other items that management believes
might otherwise make comparisons of our ongoing business with prior
periods and competitors more difficult, obscure trends in ongoing
operations or reduce management's ability to make useful
forecasts.
We provide investors with non-GAAP gross profit and gross
margin, non-GAAP operating income and operating margin and non-GAAP
net income because we believe it is important for investors to be
able to closely monitor and understand changes in our ability to
generate income from ongoing business operations. We believe these
non-GAAP financial measures give investors an additional method to
evaluate historical operating performance and identify trends,
additional means of evaluating period-over-period operating
performance and a method to facilitate certain comparisons of
operating results to peer companies. We also believe that providing
non-GAAP operating income and operating margin allows investors to
assess the extent to which ongoing operations impact our overall
financial performance. We further believe that providing non-GAAP
net income and non-GAAP net income per share (diluted) allows
investors to assess the overall financial performance of ongoing
operations by eliminating the impact of certain financing decisions
related to our convertible debt and certain tax items which may not
occur in each period presented and which may represent non-cash
items or gains or losses unrelated to our ongoing operations. We
believe that disclosing these non-GAAP financial measures
contributes to enhanced financial reporting transparency and
provides investors with added clarity about complex financial
performance measures.
We calculate non-GAAP gross profit by excluding from GAAP gross
profit, stock compensation expense, restructuring-related charges
and acquisition-related (credits) expenses. We calculate non-GAAP
operating income by excluding from GAAP operating income, stock
compensation expense, restructuring-related charges,
acquisition-related (credits) expenses, litigation settlement gains
and losses and certain deferred executive compensation. We
calculate non-GAAP net income and net income per share (diluted) by
excluding from GAAP net income and net income per share (diluted),
stock compensation expense, restructuring-related charges,
acquisition-related (credits) expenses, litigation settlement gains
and losses, amortization of discount on convertible debt, and
certain deferred executive compensation, as well as certain items
related to the retirement of convertible debt, and certain tax
items, which may not occur in all periods for which financial
information is presented. We exclude the items identified above
from the respective non-GAAP financial measure referenced above for
the reasons set forth with respect to each such excluded item
below:
Stock Compensation - because (1) the total amount of expense is
partially outside of our control because it is based on factors
such as stock price volatility and interest rates, which may be
unrelated to our performance during the period in which the expense
is incurred, (2) it is an expense based upon a valuation
methodology premised on assumptions that vary over time, and (3)
the amount of the expense can vary significantly between companies
due to factors that can be outside of the control of such
companies.
Acquisition-Related (Credits) Expenses - including such items
as, when applicable, amortization of acquired intangible assets,
fair value adjustments to contingent consideration, fair value
charges incurred upon the sale of acquired inventory,
acquisition-related professional fees and deemed compensation
expenses, because they are not considered by management in making
operating decisions and we believe that such expenses do not have a
direct correlation to future business operations and thereby
including such charges does not accurately reflect the performance
of our ongoing operations for the period in which such charges are
incurred.
Litigation Settlement Gains and Losses - including gains and
losses related to the resolution of other than ordinary course
threatened and actually filed lawsuits and other than ordinary
course contractual disputes, because (1) they are not considered by
management in making operating decisions, (2) such gains and losses
tend to be infrequent in nature, (3) such gains and losses are
generally not directly controlled by management, (4) we believe
such gains and losses do not necessarily reflect the performance of
our ongoing operations for the period in which such charges are
recognized and (5) the amount of such gains or losses can vary
significantly between companies and make comparisons difficult.
Restructuring-Related Charges - because, to the extent such
charges impact a period presented, we believe that they have no
direct correlation to future business operations and including such
charges does not necessarily reflect the performance of our ongoing
operations for the period in which such charges are incurred.
Deferred Executive Compensation - including charges related to
any contingent obligation pursuant to an executive severance
agreement because we believe the period over which the obligation
is amortized may not reflect the period of benefit and that such
expense has no direct correlation with our recurring business
operations and including such expenses does not accurately reflect
the compensation expense for the period in which incurred.
Amortization of Discount on Convertible Debt - comprised of the
amortization of the debt discount recorded at inception of the
convertible debt borrowing related to the adoption of ASC 470-20,
because the expense is dependent on fair value assessments and is
not considered by management when making operating decisions.
Gains and Losses on Retirement of Convertible Debt - because, to
the extent that gains or losses from such repurchases impact a
period presented, we do not believe that they reflect the
underlying performance of ongoing business operations for such
period.
Certain Income Tax Items - including certain deferred tax
charges and benefits which do not result in a current tax payment
or tax refund and other adjustments which are not indicative of
ongoing business operations.
Investors are cautioned against placing undue reliance on these
non-GAAP financial measures and are urged to review and consider
carefully the adjustments made by management to the most directly
comparable GAAP financial measures to arrive at these non-GAAP
financial measures. Non-GAAP financial measures may have limited
value as analytical tools because they may exclude certain expenses
that some investors consider important in evaluating operating
performance or ongoing business. Further, non-GAAP financial
measures are likely to have limited value for purposes of drawing
comparisons between companies because different companies may
calculate similarly titled non-GAAP financial measures in different
ways because non-GAAP measures are not based on any comprehensive
set of accounting rules or principles.
This press release contains a forward looking estimate of
non-GAAP diluted earnings per share for the fourth quarter of our
2012 fiscal year (“Q4 2012”). We provide this non-GAAP measure to
investors on a prospective basis for the same reasons (set forth
above) that we provide them to investors on a historical basis. We
are unable to provide a reconciliation of our forward looking
estimate of non-GAAP diluted earnings per share to a forward
looking estimate of GAAP diluted earnings per share because certain
information needed to make a reasonable forward looking estimate of
GAAP diluted earnings per share for Q4 2012 (other than estimated
stock compensation expense of $0.10 per diluted share, certain tax
items of $0.08 per diluted share, acquisition related expenses of
$0.05 per diluted share and estimated deferred executive
compensation expense with a de minimis impact per diluted share) is
difficult to predict and estimate and is often dependent on future
events which may be uncertain or outside of our control. Such
events may include unanticipated charges related to asset
impairments (fixed assets, intangibles or goodwill), unanticipated
acquisition related costs and other unanticipated or non-recurring
items not reflective of ongoing operations. We believe the probable
significance of these unknown items, in aggregate, to be in the
range of $0.00 to $0.10 in quarterly earnings per diluted share on
a GAAP basis.
Our forward looking estimates of both GAAP and non-GAAP measures
of our financial performance may differ materially from our actual
results and should not be relied upon as statements of fact.
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