Revised Outlook Reflects Impact of U.S.
Department of Commerce Actions Against Huawei
Skyworks Solutions, Inc. (Nasdaq: SWKS), an innovator of high
performance analog semiconductors connecting people, places and
things, today announced it is updating its outlook for the third
fiscal quarter of 2019 ending June 28, 2019. This update reflects
the expected impact on Skyworks of the U.S. Bureau of Industry and
Security (BIS) of the U.S. Department of Commerce placing Huawei
Technologies Co. and certain of its affiliates on the Bureau’s
Entity List. Skyworks ceased all shipments to Huawei and its
affiliates as of the date Huawei was added to the Entity List and
cannot currently predict if and when shipments will resume.
Skyworks’ past shipments to Huawei and its affiliates include
both mobile and wireless infrastructure solutions. During the first
six months of fiscal 2019, sales to Huawei were approximately 12
percent of Skyworks’ total revenue.
The outlook provided during Skyworks’ second fiscal quarter 2019
earnings conference call on May 2, 2019, did not anticipate the
addition of Huawei to the Entity List and the cessation of
shipments to Huawei and its affiliates. As a result, the company is
revising its outlook for revenue and non-GAAP EPS for the third
fiscal quarter of 2019, assuming no further shipments to Huawei
occur this quarter. The company now expects:
- Revenue between $755 million and $775
million, compared to the prior outlook of between $815 million and
$835 million;
- Non-GAAP diluted earnings per share of
$1.34 at the midpoint of the revenue range, compared to the prior
outlook of $1.50.
This update is based on information available to management as
of the date of this release. Skyworks undertakes no obligation to
update the information in this release in the event facts or
circumstances change after the date of this release.
Discussion Regarding the Use of Non-GAAP Financial
Measures
This press release contains a forward-looking estimate of
non-GAAP diluted earnings per share for the third quarter of our
2019 fiscal year (“Q3 2019”). We are unable to provide a
reconciliation of our forward-looking estimate to Q3 2019 GAAP
diluted earnings per share because certain information needed to
make a reasonable forward-looking estimate of GAAP diluted earnings
per share for Q3 2019 (other than estimated share-based
compensation expense of $0.10 to $0.15 per diluted share, and
estimated amortization of intangibles of $0.05 to $0.07 per diluted
share) is difficult to predict and estimate and is often dependent
on future events that may be uncertain or outside of our control.
Such events may include changes in our GAAP effective tax rate,
one-time charges related to asset impairments (fixed assets,
inventory, intangibles or goodwill), acquisition-related expenses,
litigation settlement gains, losses and expenses and other
non-recurring items not reflective of ongoing operations. 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.
About Skyworks
Skyworks Solutions, Inc. is empowering the wireless networking
revolution. Our highly innovative analog semiconductors are
connecting people, places and things spanning a number of new and
previously unimagined applications within the aerospace,
automotive, broadband, cellular infrastructure, connected home,
industrial, medical, military, smartphone, tablet and wearable
markets.
Skyworks is a global company with engineering, marketing,
operations, sales and support facilities located throughout Asia,
Europe and North America and is a member of the S&P 500® and
Nasdaq-100® market indices (Nasdaq: SWKS). For more information,
please visit Skyworks’ website 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: cessation of shipments of products to our
customers as a result of a customer being added to the U.S.
Commerce Department’s Entity List; the susceptibility of the
semiconductor industry and the markets addressed by our, and our
customers’, products to economic downturns; our reliance on several
key customers for a large percentage of our sales; the volatility
of our stock price; declining selling prices, decreased gross
margins, and loss of market share as a result of increased
competition; our ability to obtain design wins from customers;
economic, social, military and geo-political conditions in the
countries in which we, our customers or our suppliers operate,
including security and health risks, imposition of trade protection
measures (e.g., tariffs or taxes), increased import/export
restrictions and controls, and possible disruptions in
transportation networks and fluctuations in foreign currency
exchange rates; changes in laws, regulations and/or policies that
could adversely affect our operations and financial results, the
economy and our customers’ demand for our products, or the
financial markets and our ability to raise capital; fluctuations in
our manufacturing yields due to our complex and specialized
manufacturing processes; our ability to develop, manufacture and
market innovative products, avoid product obsolescence, reduce
costs in a timely manner, transition our products to smaller
geometry process technologies, and achieve higher levels of design
integration; the quality of our products and any defect remediation
costs; the availability and pricing of third-party semiconductor
foundry, assembly and test capacity, raw materials and supplier
components; 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; the timing, rescheduling or cancellation of significant
customer orders and our ability, as well as the ability of our
customers, to manage inventory; our ability to prevent theft of our
intellectual property, disclosure of confidential information, or
breaches of our information technology systems; 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 continue to
grow and maintain an intellectual property portfolio and obtain
needed licenses from third parties; our ability to make certain
investments and acquisitions, integrate companies we acquire,
and/or enter into strategic alliances; and 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 the Skyworks symbol are trademarks
or registered trademarks of Skyworks Solutions, Inc. or its
subsidiaries in the United States and other countries. Third-party
brands and names are for identification purposes only, and are the
property of their respective owners.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190604006000/en/
Media Relations:Pilar Barrigas(949) 231-3061
Investor Relations:Mitch Haws(949) 231-3223
Skyworks Solutions (NASDAQ:SWKS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Skyworks Solutions (NASDAQ:SWKS)
Historical Stock Chart
From Sep 2023 to Sep 2024