Revised Outlook Reflects Expected Impact of
COVID-19
Skyworks Solutions, Inc. (Nasdaq: SWKS), an innovator of
high-performance analog semiconductors connecting people, places
and things, today announced that it is updating its outlook for the
second fiscal quarter of 2020 ending March 27, 2020. This update
reflects the unanticipated impact that the COVID-19 outbreak is
having on the business environment. Based on a current assessment
of business conditions, the company now expects for the second
fiscal quarter of 2020:
- Revenue between $760 million and $770 million, compared to the
prior outlook of between $800 million and $820 million;
- Non-GAAP diluted earnings per share of $1.34 at the midpoint of
the updated revenue range, compared to the prior outlook of $1.46
at the midpoint of the prior revenue range.
“Although COVID-19 has caused no significant disruption within
Skyworks’ manufacturing operations to date, the current demand
environment for our products has been negatively impacted by
interruptions in global supply chains,” said Liam K. Griffin,
president and chief executive officer of Skyworks. “Despite this,
we remain upbeat about our design win momentum and our ability to
deliver strong profitability and cash flow. As we navigate these
challenges, we continue to focus on the health and safety of all
our employees, customers and partners worldwide.”
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 second quarter of our
2020 fiscal year (“Q2 2020”). We are unable to provide a
reconciliation of our forward-looking estimate to Q2 2020 GAAP
diluted earnings per share because certain information needed to
make a reasonable forward-looking estimate of GAAP diluted earnings
per share for Q2 2020 (other than estimated share-based
compensation expense of $0.15 to $0.20 per diluted share, estimated
amortization of intangibles of $0.05 to $0.07 per diluted share and
certain tax items of -$0.05 to $0.05 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 the severity and scope of COVID-19,
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 settlements, gains,
losses and impairments and other unanticipated 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: the susceptibility of the semiconductor
industry and the markets addressed by our, and our customers’,
products to economic downturns, including as a result of widespread
illness such as the current COVID-19 outbreak; our reliance on
several key customers for a large percentage of our sales; the
risks of doing business internationally, including increased
import/export restrictions and controls (e.g., the effect of the
U.S. Bureau of Industry and Security of the U.S. Department of
Commerce placing Huawei Technologies Co., Ltd. and certain of its
affiliates on the Bureau’s Entity List), imposition of trade
protection measures (e.g., tariffs or taxes), security and health
risks, possible disruptions in transportation networks,
fluctuations in foreign currency exchange rates, and other
economic, social, military and geo-political conditions in the
countries in which we, our customers or our suppliers operate; 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;
delays in the standardization or commercial deployment of 5G
technologies; 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; our products’ ability to perform under stringent operating
conditions; 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200304005221/en/
Investor Relations: Mitch Haws (949) 231-3223
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