Skyworks Solutions, Inc. (Nasdaq: SWKS), an innovator of
high-performance analog semiconductors connecting people, places
and things, today provided a business update in light of the global
COVID-19 outbreak.
Revenue for the second fiscal quarter of 2020 ended March 27,
2020, was $766.1 million, slightly exceeding the midpoint of the
updated range provided in the company’s revised outlook announced
on March 4, 2020. The company expects non-GAAP diluted earnings per
share to be in line with the guidance it provided on March 4, 2020,
for performance at the midpoint of the revenue range.
Skyworks continues to monitor its supply chain in light of the
COVID-19 outbreak. While it has seen limited impact to date, on
April 13, 2020, state and local government officials from the state
of Baja California, Mexico, informed Skyworks of their decision to
temporarily suspend Skyworks’ operations in Mexicali, Mexico (the
“Mexicali Operations”), pursuant to the Mexican Ministry of
Health’s Executive Order dated March 31, 2020, which suspended all
non-essential public and private sector business through April 30,
2020, in order to mitigate the spread of the COVID-19 outbreak. In
compliance with this decision, Skyworks has temporarily suspended
its Mexicali Operations and has directed its workforce in Mexico to
follow the government’s “remain at home” directive.
Skyworks does not expect that the temporary suspension of its
Mexicali Operations through April 30, 2020, would have a
significant impact on the company’s business operations. However,
an extended suspension of the Mexicali Operations beyond April 30
would likely impact Skyworks’ ability to meet customer demand and
would likely impact its operating results. Skyworks is working with
state and local officials in Mexicali to resume operations as soon
as practicable. An update will be provided when Skyworks reports
its second quarter fiscal 2020 results.
Skyworks remains committed to promoting and preserving the
health and wellbeing of its employees in all locations. In response
to the global COVID-19 outbreak, Skyworks has implemented multiple
protocols in its facilities worldwide, including social distancing,
pre-shift temperature screening, enhanced use of personal
protective equipment, heightened sanitation standards and
remote-work options wherever possible. In addition to these
practices, Skyworks has also implemented rotating shifts with
reduced staffing at its various manufacturing sites.
This update, including the financial results expected for the
second fiscal quarter of 2020, is preliminary in nature, based on
information available to management as of the date of this release,
including with respect to those impacts of the COVID-19 outbreak
that are currently known to management, and is subject to further
changes upon completion of standard quarter-end closing procedures
and based on the duration and severity of the COVID-19 outbreak.
Skyworks’ independent registered public accounting firm has not
completed its review of Skyworks’ results for the second fiscal
quarter ended March 27, 2020. Skyworks undertakes no obligation to
update the information in this release in the event facts or
circumstances change after the date of this release.
Skyworks’ Second Fiscal Quarter 2020 Conference Call
Skyworks will conduct a conference call with analysts to discuss
its second quarter fiscal 2020 results and business outlook on May
4, 2020, at 4:30 p.m. Eastern time.
After the close of the market on May 4, and prior to the
conference call, Skyworks will issue a copy of the earnings press
release via Business Wire. The press release may also be viewed on
Skyworks’ website at www.skyworksinc.com.
To listen to the conference call via the Internet, please visit
the investor relations section of Skyworks’ website. To listen to
the conference call via telephone, please call (844) 583-4549
(domestic) or (825) 312-2257 (international), confirmation code:
9073455.
Playback of the conference call will begin at 9:00 p.m. Eastern
time on May 4 and end at 9:00 p.m. Eastern time on May 11. The
replay will be available on Skyworks’ website or by calling (800)
585-8367 (domestic) or (416) 621-4642 (international), access code:
9073455.
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 financial results for the second quarter of fiscal year
2020, the impact of the temporary suspension of our manufacturing
operations in Mexicali, Mexico, and other 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 effects of the global COVID-19 outbreak
and the measures taken to limit COVID-19’s spread, including the
temporary suspension of our manufacturing operations in Mexicali,
Mexico, as well as new disruptions to our business that could
result from additional measures that may be taken by governmental
authorities in the jurisdictions in which we operate to contain the
COVID-19 outbreak; 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/20200414005348/en/
Investor Relations: Mitch Haws (949) 231-3223
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