(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 fourth fiscal quarter and year-end
2009 results. Revenue for the quarter was $228.1 million, representing a
19 percent sequential increase when compared to $191.2 million in the
third fiscal quarter, and exceeding the Company's updated guidance range
of $220 to $225 million provided on September 9, 2009.
On a non-GAAP basis, operating income for the fourth fiscal quarter was
$42.5 million, up from $28.6 million in the prior quarter while diluted
earnings per share for the quarter was up 50 percent sequentially to a
record $0.24. GAAP operating income for the fourth fiscal quarter was
$33.0 million versus $21.5 million in the third fiscal quarter of 2009.
GAAP diluted earnings per share was $0.32 for the period, including a
tax allowance release benefit of $0.17, and compared to $0.12 in the
prior quarter.
"Skyworks' improving financial performance reflects the growing momentum
of the mobile internet and increasing demand for always-on connectivity,
particularly given the ubiquity of social networking applications and
the proliferation of smart phones, notebooks, netbooks and embedded
wireless devices," said David J. Aldrich, president and chief executive
officer of Skyworks. "At a higher level, we believe we are at the
beginning of three powerful, multi-year waves including broadband access
growth, infrastructure capacity expansion and smart grid
implementations. Skyworks is leading the way through analog
semiconductor innovation, enabling better battery performance, signal
quality and network coverage. As a result, we are entering a new and
exciting growth phase which is positioning Skyworks to further
differentiate, demonstrate even greater operating leverage, and most
importantly, create shareholder value."
Business Highlights
Expanded non-GAAP gross and operating margins to 40.9 percent and 18.6
percent, respectively (40.6 percent and 14.4 percent on a GAAP basis)
Retired $17.4 million of 2010 convertible bonds, which were
convertible into approximately 2 million shares of common stock
Ramped smart grid solutions at Itron, ESCO, Neptune, Landis + Gyr and
Sensus leveraging new ZigBee architectures
Launched network infrastructure digital attenuators, voltage
controller oscillators, synthesizers and mixers at Huawei, ZTE,
Ericsson, Alcatel-Lucent and Nokia-Siemens
Commenced production in support of Intel wireless local area
networking reference designs for notebook and netbook devices
Supported the launch of a number of Android-based smart phones
First Fiscal Quarter 2010 Outlook
"Although we continue to remain cautious on the broader economy, based
on our improving order visibility and backlog strength, we anticipate 13
to 15 percent year-over-year revenue growth for the first fiscal quarter
of 2010 driven by mobile internet, energy management and diversified
analog applications," said Donald W. Palette, vice president and chief
financial officer of Skyworks. "Specifically, we expect revenue in the
$238 to $242 million range, gross margin expansion and a 20 percent
non-GAAP operating margin. In turn, we intend to deliver $0.25 of
non-GAAP diluted earnings per share in the December quarter,
representing a 47 percent year-over-year improvement in profitability."
On a GAAP basis, operating margin is expected to be 16 percent in the
first fiscal quarter of 2010. For further information regarding use of
non-GAAP measures, please refer to the Discussion Regarding the Use of
Non-GAAP Financial Measures set forth below.
Skyworks' Fourth Fiscal Quarter 2009 Conference Call
Skyworks will host a conference call with analysts to discuss its fourth
fiscal quarter and year-end 2009 results and business outlook today at
5:00 p.m. Eastern Time (ET). 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
800-419-9895 (domestic) or 816-581-1703 (international), confirmation
code: 6446488.
Playback of the conference call will begin at 9:00 p.m. ET on November
5, and end at 9:00 p.m. ET on November 12. The replay will be available
on Skyworks' Web site or by calling 888-203-1112 (domestic) or
719-457-0820 (international), pass code: 6446488.
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 without limitation information relating to future
results and expectations of Skyworks (including without limitation
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: 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 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.
SKYWORKS SOLUTIONS, INC.
UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS
Three Months Ended Year Ended
Oct. 2, Oct. 3, Oct. 2, Oct. 3,
(in thousands, except per share amounts) 2009 2008 2009 2008
Net revenues $ 228,146 $ 232,566 $ 802,577 $ 860,017
Cost of goods sold 135,618 138,742 484,357 517,054
Gross profit 92,528 93,824 318,220 342,963
Operating expenses:
Research and development 31,090 38,777 123,996 146,013
Selling, general and administrative 26,311 25,399 100,421 100,007
Restructuring & other charges - 567 15,982 567
Amortization of intangibles 2,175 1,101 6,118 6,005
Total operating expenses 59,576 65,844 246,517 252,592
Operating income 32,952 27,980 71,703 90,371
Interest expense (807 ) (1,695 ) (3,644 ) (7,330 )
Loss on early retirement of convertible debt, net (6,101 ) (6,836 ) (4,066 ) (6,836 )
Other income, net 396 986 1,753 5,983
Income before income taxes 26,440 20,435 65,746 82,188
Benefit from income taxes (29,565 ) (34,354 ) (27,543 ) (28,818 )
Net income $ 56,005 $ 54,789 $ 93,289 $ 111,006
Earnings per share:
Basic $ 0.33 $ 0.33 $ 0.56 $ 0.69
Diluted $ 0.32 $ 0.33 $ 0.55 $ 0.68
Weighted average shares: *
Basic 170,283 163,948 167,047 161,878
Diluted 177,120 166,527 169,663 164,755
* The diluted earnings per share calculation for the fiscal year ended October 3, 2008 includes the impact of the Company's 4.75% convertible subordinated notes which were retired during the first quarter of fiscal 2008.
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SKYWORKS SOLUTIONS, INC.
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
Three Months Ended Year Ended
Oct. 2, Oct. 3, Oct. 2, Oct. 3,
(in thousands) 2009 2008 2009 2008
GAAP gross profit $ 92,528 $ 93,824 $ 318,220 $ 342,963
Stock compensation expense [a] 870 812 3,129 2,974
Cost of goods sold adjustments [b] - - 3,458 -
Acquisition-related expense [c] - 308 - 1,589
Non-GAAP gross profit $ 93,398 $ 94,944 $ 324,807 $ 347,526
Non-GAAP gross margin % 40.9 % 40.8 % 40.5 % 40.4 %
Three Months Ended Year Ended
Oct. 2, Oct. 3, Oct. 2, Oct.