(Source: Business Wire)
Skyworks Solutions, Inc. (NASDAQ: SWKS), an innovator of high reliability analog and mixed signal semiconductors enabling a broad range of end markets, today reported third fiscal quarter 2009 results. Revenue for the quarter was $191.2 million, an 11 percent sequential increase when compared to the second fiscal quarter of 2009 and exceeding the Company's guidance of $182.0 million.
Non-GAAP operating income for the third fiscal quarter was $28.6 million, up 35 percent from $21.2 million in the second fiscal quarter. Diluted non-GAAP earnings per share for the quarter was $0.16, $0.02 better than consensus estimates. On a GAAP basis, operating income for the third fiscal quarter was $21.5 million versus an operating loss of $3.7 million in the second fiscal quarter. GAAP diluted earnings per share was $0.12 as compared to a $0.03 loss in the prior quarter.
"Skyworks exceeded all key financial targets in our third fiscal quarter driven by program strength spanning analog, smart phone, netbook, 3G infrastructure, mobile video and energy management applications," said David J. Aldrich, president and chief executive officer of Skyworks. "Our strategy of diversifying into a broader set of analog semiconductor sectors, consolidating share in core markets and leveraging our scale advantages is increasingly reflected in our improving financial performance. At a higher level, we have never been better positioned to achieve our long-term financial targets and create shareholder value."
Business Highlights
Expanded non-GAAP gross and operating margins to 40.5 percent and 15.0 percent, respectively (40.2 percent and 11.3 percent on a GAAP basis)
Generated $140 million of cash flow from operations on a fiscal year-to-date basis
Introduced ultra low noise amplifiers to address GPS, satellite radio, WCDMA and LTE infrastructure markets
Secured wireless local area networking design wins at Intel
Ramped production with ESCO Technologies, Itron and Neptune to meet growing worldwide demand for smart meter readers
Supported Broadcom's 802.11n reference designs capturing 3 of the world's top 4 netbook and notebook OEMs
Powered Samsung's latest smart phones and touch screen platforms with highly innovative EDGE and WCDMA front-end solutions
Acquired Axiom Microdevices, Inc., the world's only volume supplier of CMOS power amplifiers for mobile handsets targeting emerging markets
Fourth Fiscal Quarter 2009 Outlook
"Although we remain cautious on the macro-economy, our expanding product, market and customer footprints are setting the stage for a much stronger back half of 2009 for Skyworks," said Donald W. Palette, vice president and chief financial officer of Skyworks. "Specifically, we expect revenue for the September quarter to be up 10 percent sequentially with a 17 percent operating margin and non-GAAP diluted earnings per share of $0.19. We also anticipate another strong quarter of cash flow generation."
Estimated non-GAAP diluted earnings per share for the fourth fiscal quarter excludes approximately $6.8 million of FASB Statement No. 123(R) - related expenses.
Non-GAAP results, which are a supplement to financial results based on GAAP, exclude certain charges including but not limited to share-based compensation, business restructuring charges, amortization of intangible assets, tax valuation allowance reversals, and non-recurring items. The Company believes these non-GAAP financial measures provide useful information to both management and investors by excluding certain charges and non-recurring items that may not be indicative of Skyworks' ongoing operations and financial performance.
Skyworks' Third Fiscal Quarter 2009 Conference Call
Skyworks will host a conference call with analysts to discuss its third fiscal quarter 2009 results and business outlook today at 5:00 p.m. Eastern Daylight Time (EDT). To listen to the conference call via the Internet, please visit the investor relations section of Skyworks' Web site. To listen to the conference call via telephone, please call 888-713-4494 (domestic) or 913-312-1494 (international), confirmation code: 2543095.
Playback of the conference call will begin at 9:00 p.m. EDT on July 22, and end at 9:00 p.m. EDT on July 29. The replay will be available on Skyworks' Web site or by calling 888-203-1112 (domestic) or 719-457-0820 (international), pass code: 2543095.
About Skyworks
Skyworks Solutions, Inc. is an innovator of high reliability analog and mixed signal semiconductors. Leveraging core technologies, Skyworks offers diverse standard and custom linear products supporting automotive, broadband, cellular infrastructure, energy management, industrial, medical, military and mobile handset applications. The Company's portfolio includes amplifiers, attenuators, detectors, diodes, directional couplers, front-end modules, hybrids, infrastructure RF subsystems, mixers/demodulators, phase shifters, PLLs/synthesizers/VCOs, power dividers/combiners, 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 information relating to future results and expectations of Skyworks (including certain projections and business trends). Forward-looking statements can often be identified by words such as "anticipates," "expects," "forecasts," "intends," "believes," "plans," "may," "will," "continue," similar expressions, and variations or negatives of these words. All such statements are subject to certain risks and uncertainties 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 and uncertainties include, but are not limited to: unprecedented 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; 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; 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; the availability and pricing of third party semiconductor foundry, assembly and test capacity and raw materials; 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, 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. UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS Three Months Ended Nine Months Ended July 3, June 27, July 3, June 27, (in thousands, except per share amounts) 2009 2008 2009 2008 Net revenues $ 191,213 $ 215,210 $ 574,431 $ 627,451 Cost of goods sold 114,263 128,776 348,739 378,312 Gross profit 76,950 86,434 225,692 249,139 Operating expenses: Research and development 29,666 36,561 92,906 107,236 Selling, general and administrative 24,215 25,975 74,110 74,608 Restructuring & other charges - - 15,982 - Amortization of intangibles 1,548 1,101 3,943 4,904 Total operating expenses 55,429 63,637 186,941 186,748 Operating income 21,521 22,797 38,751 62,391 Interest expense (890 ) (1,658 ) (2,837 ) (5,635 ) Gain on early retirement of convertible debt - - 2,035 - Other (expense) income, net (32 ) 1,064 1,357 4,997 Income before income taxes 20,599 22,203 39,306 61,753 Provision for income taxes 750 1,737 2,022 5,536 Net income $ 19,849 $ 20,466 $ 37,284 $ 56,217 Earnings per share: Basic $ 0.12 $ 0.13 $ 0.22 $ 0.35 Diluted $ 0.12 $ 0.12 $ 0.22 $ 0.34 Weighted average shares: Basic 167,062 162,095 165,971 161,166 Diluted 169,525 164,649 167,180 163,323 -------------------------------------------------------------------------------
SKYWORKS SOLUTIONS, INC. UNAUDITED RECONCILIATION OF NON-GAAP MEASURES Three Months Ended Nine Months Ended July 3, June 27, July 3, June 27, (in thousands) 2009 2008 2009 2008 GAAP gross profit $ 76,950 $ 86,434 $ 225,692 $ 249,139 Share-based compensation expense [a] 522 651 2,259 2,162 Cost of goods sold adjustments [b] - - 3,458 - Acquisition related expense [c] - 330 - 1,281 Non-GAAP gross profit $ 77,472 $ 87,415 $ 231,409 $ 252,582 Non-GAAP gross margin % 40.5 % 40.6 % 40.3 % 40.3 % Three Months Ended Nine Months Ended July 3, June 27, July 3, June 27, (in thousands) 2009 2008 2009 2008 GAAP operating income $ 21,521 $ 22,797 $ 38,751 $ 62,391 Share-based compensation expense [a] 5,468 6,112 16,321 16,762 Cost of goods sold adjustments [b] - - 3,458 - Restructuring & other charges [b] - - 15,982 - Acquisition related expense [c] - 330 - 1,281 Amortization of intangible assets [c] 1,548 1,101 3,943 4,904 Selling, general and administrative adjustments [d] (124 ) - (523 ) (502 ) Deferred executive compensation 164 - 490 - Non-GAAP operating income $ 28,577 $ 30,340 $ 78,422 $ 84,836 Non-GAAP operating margin % 14.9 % 14.1 % 13.7 % 13.5 % Three Months Ended Nine Months Ended July 3, June 27, July 3, June 27, (in thousands) 2009 2008 2009 2008 GAAP net income $ 19,849 $ 20,466 $ 37,284 $ 56,217 Share-based compensation expense [a] 5,468 6,112 16,321 16,762 Cost of goods sold adjustments [b] - - 3,458 - Restructuring & other charges [b] - - 15,982 - Acquisition related expense [c] - 330 - 1,281 Amortization of intangible assets [c] 1,548 1,101 3,943 4,904 Selling, general and administrative adjustments [d] (124 ) - (523 ) (502 ) Deferred executive compensation 164 - 490 - A service of YellowBrix, Inc.
