Increases Current Quarter Guidance to $570
Million in Revenue and $0.80 of Non-GAAP Diluted EPS
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 third quarter
of fiscal 2014. The Company now anticipates current quarter revenue
of $570 million, representing a 31 percent year-over-year increase
and 19 percent sequential growth. Skyworks also expects to deliver
non-GAAP diluted earnings per share of $0.80, reflecting a 48
percent increase when compared to the same period a year ago and 29
percent sequential growth. The Company had previously guided to
$535 million in revenue and $0.73 of non-GAAP diluted earnings per
share on April 22, 2014 as part of its second fiscal quarter
earnings release.
“As our upwardly revised outlook reflects, Skyworks is
capitalizing on the growing opportunity within the Internet of
Things as well as increasing analog complexity associated with
higher data rate connectivity standards, both of which are enabling
us to substantially outpace the growth of the broader semiconductor
market,” said David J. Aldrich, chairman and chief executive
officer of Skyworks. “These macro trends continue to validate our
investments in highly differentiated, custom solutions that are
facilitating an expanding set of end markets. Based on our design
win traction and order visibility, we anticipate continued strength
beyond the June quarter as our products continue to gain
momentum.”
“We also expect our recently announced joint venture with
Panasonic to further enrich our systems capabilities, broaden our
technology portfolio and enhance our financial returns,” said
Donald W. Palette, executive vice president and chief financial
officer of Skyworks. “In fact, we anticipate the Panasonic
transaction will provide at least 100 basis points of gross margin
accretion in fiscal 2015, paving the way for continued top- and
bottom-line outperformance for the foreseeable future.”
About Skyworks
Skyworks Solutions, Inc. is an innovator of high performance
analog semiconductors. Leveraging core technologies, Skyworks
supports automotive, broadband, wireless infrastructure, energy
management, GPS, industrial, medical, military, wireless
networking, smartphone and tablet applications. The Company’s
portfolio includes amplifiers, attenuators, battery chargers,
circulators, DC/DC converters, demodulators, detectors, diodes,
directional couplers, front-end modules, hybrids, infrastructure RF
subsystems, isolators, LED drivers, mixers, modulators,
optocouplers, optoisolators, phase shifters,
PLLs/synthesizers/VCOs, power dividers/combiners, power management
devices, receivers, switches, technical ceramics and voltage
regulators.
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 (e.g.,
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
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 that could adversely
affect either (i) the economy and our customers’ demand for our
products or (ii) the 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; economic, social, military and
geo-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.
The forward-looking statements contained in this news release
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.
DISCUSSION REGARDING THE USE OF NON-GAAP
FINANCIAL MEASURES
This press release contains a forward-looking estimate of
non-GAAP diluted earnings per share that has not been calculated in
accordance with United States Generally Accepted Accounting
Principles (“GAAP”). We estimate such forward-looking non-GAAP
diluted earnings per share by excluding certain expenses and other
items from the respective GAAP financial estimate. Management uses
certain non-GAAP financial measures, including non-GAAP diluted
earnings per share, 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 more
difficult, obscure trends in ongoing operations or reduce
management's ability to make useful forecasts.
We provide investors with non-GAAP financial measures 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, an additional means of
evaluating period-over-period operating performance and a method to
facilitate certain comparisons of our operating results to those of
our peer companies. We also believe that providing non-GAAP diluted
earnings per share allows investors to better assess the overall
financial performance of our ongoing operations by eliminating the
impact of share-based compensation expense, acquisition-related
expenses, restructuring-related charges, litigation settlement
gains, losses and expenses, certain deferred executive compensation
and certain tax items which may not occur in each period presented
and which may represent non-cash items unrelated to our ongoing
operations. We believe that disclosing 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 diluted earnings per share by excluding
from GAAP diluted earnings per share, share-based compensation
expense, acquisition-related expenses, restructuring-related
charges, litigation settlement gains, losses and expenses, certain
deferred executive compensation and certain tax items which may not
occur in all periods for which financial information is presented.
We exclude the items identified above from non-GAAP diluted
earnings per share for the reasons set forth with respect to each
such excluded item below:
Share-Based Compensation - because (1) the total 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 expense can vary significantly between companies due to factors
that can be outside of the control of such companies.
Acquisition-Related Expenses - including items such 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
our future business operations. We believe including such charges
does not accurately reflect the performance of our ongoing
operations for the period in which such charges are incurred.
Restructuring-Related Charges - because, to the extent such
charges impact a period presented, we believe that they have no
direct correlation to our 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. Litigation Settlement Gains, Losses and Expenses -
including gains, losses and expenses 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, losses and expenses tend to be
infrequent in nature, (3) such gains, losses and expenses are
generally not directly controlled by management, (4) we believe
such gains, losses and expenses 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
and expenses can vary significantly between companies and make
comparisons less reliable. 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. Certain Income Tax Items - including certain
deferred tax charges and benefits that do not result in a current
tax payment or tax refund and other adjustments, including but not
limited to, items unrelated to the current fiscal year or that are
not indicative of our ongoing business operations.
The non-GAAP estimate of diluted earnings per share presented in
this press release should not be considered in isolation and is not
an alternative for GAAP diluted earnings per share. Investors are
cautioned against placing undue reliance on this non-GAAP financial
measure and are urged to review and consider carefully the
adjustments made by management to the corresponding GAAP financial
measure. Non-GAAP financial measures may have limited value as
analytical tools because they may exclude certain expenses that
some investors consider important in evaluating a company’s
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 third
quarter of our 2014 fiscal year ("Q3 FY2014"). We are unable to
provide a reconciliation of our forward-looking estimate of Q3
FY2014 non-GAAP diluted earnings per share to a forward-looking
estimate of Q3 FY2014 GAAP diluted earnings per share because
certain information needed to make a reasonable forward-looking
estimate of GAAP diluted earnings per share for Q3 FY2014 (other
than estimated share-based compensation expense of $0.10 per
diluted share, certain tax items of $0.11 per diluted share and
estimated amortization of intangibles of $0.03 per diluted share)
is difficult to estimate and is often dependent on future events
that may be uncertain or outside of our control. Such events may
include unanticipated changes in our GAAP effective tax rate,
unanticipated one-time charges related to asset impairments (fixed
assets, inventory, intangibles or goodwill), unanticipated
acquisition-related expenses, unanticipated litigation settlement
gains, losses and expenses and other unanticipated 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 $0.05 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.
Skyworks Media Relations:Pilar Barrigas, (949)
231-3061orSkyworks Investor Relations:Stephen Ferranti,
(781) 376-3056
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