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TheStreet Open House

Skyworks Exceeds Q2 FY12 Revenue And EPS Estimates

Stocks in this article: SWKS

Our earnings release contains a forward looking estimate of non-GAAP diluted earnings per share for the third quarter of our 2012 fiscal year ("Q3 2012"). We provide this non-GAAP measure to investors on a prospective basis for the same reasons (set forth above) that we provide them to investors on a historical basis. We are unable to provide a reconciliation of our forward looking estimate of Q3 2012 non-GAAP diluted earnings per share to a forward looking estimate of Q3 2012 GAAP diluted earnings per share because certain information needed to make a reasonable forward looking estimate of GAAP diluted earnings per share for Q3 2012 (other than estimated stock compensation expense of $0.10 per diluted share, certain tax items of $0.05 per diluted share, estimated acquisition related expense of $0.05 per diluted share and estimated deferred executive compensation expense and restructuring and other charges with a de minimis impact per diluted share) is difficult to predict and estimate and is often dependent on future events which may be uncertain or outside of our control. Such events may include unanticipated one time charges related to asset impairments (fixed assets, intangibles or goodwill), unanticipated acquisition related costs, unanticipated litigation settlement gains and losses and other unanticipated non-recurring items not reflective of ongoing operations. We believe the probable significance of these unknown items, in aggregate, to be in the range of $0.00 to $0.10 in quarterly earnings per diluted share on a GAAP basis. 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.

[a]   These charges represent expense recognized in accordance with ASC 718 - Compensation, Stock Compensation.
Approximately $2.4 million, $7.5 million and $9.4 million were included in cost of goods sold, research and development expense and selling, general and administrative expense, respectively, for the three months ended March 30, 2012.
Approximately $4.9 million, $13.1 million and $17.1 million were included in cost of goods sold, research and development expense and selling, general and administrative expense, respectively, for the six months ended March 30, 2012.
 
For the three months ended April 1, 2011, approximately $1.9 million, $4.4 million and $8.6 million were included in cost of goods sold, research and development expense and selling, general and administrative expense, respectively.
For the six months ended April 1, 2011, approximately $3.2 million, $8.8 million and $16.1 million were included in cost of goods sold, research and development expense and selling, general and administrative expense, respectively.
 
[b] The acquisition-related expense recognized during the three months and six months ended March 30, 2012 includes a $2.8 million and $2.9 million charge to cost of sales related to the sale of acquired inventory, respectively. Also included in acquisition-related expense is $2.0 million and $9.2 million in transaction costs included in general and administrative expense associated with acquisitions, and an arbitration, completed or contemplated during the three months and six months ended March 30, 2012, respectively.
 
Approximately $0.2 million and $0.6 million in transaction costs were included in general and administrative expense associated with acquisitions completed or contemplated during the three months and six months ended April 1, 2011, respectively.
 
[c] During the three months ended March 30, 2012, the Company implemented a restructuring plan to reduce headcount associated with its acquisition of Advanced Analogic Technologies, Inc. and recorded a $5.9 million charge for the period.
 
During the fiscal year ended September 30, 2011, the Company implemented a restructuring plan to reduce headcount associated with its acquisition of SiGe Semiconductor, Inc. and recorded a $0.7 million charge for the six months ended March 30, 2012.
 
[d] During the three months ended March 30, 2012, the Company recognized a $0.5 million charge primarily related to the resolution of a contractual dispute.
 
[e] The gain recorded during the three months and six months ended March 30, 2012 relates to the retirement of the Company's 1.50% convertible subordinated notes due on March 1, 2012.
 
[f] These charges represent the amortization expense recognized in accordance with ASC 470-20. Approximately $0.1 million and $0.4 million of amortization expense was recognized during the three months and six months ended March 30, 2012, respectively.
 
Approximately $0.3 and $0.7 million of amortization expense was recognized during the three months and six months ended April 1, 2011, respectively.
 
[g] For the three months and six months ended March 30, 2012, these amounts primarily represent the utilization of net operating loss and research and development tax credit carryforwards and non-cash expense related to uncertain tax positions.
 
For the three months and six months ended April 1, 2011, these amounts primarily represent the utilization of net operating loss and research and development credit carryforwards.
SKYWORKS SOLUTIONS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
   
March 30, Sept. 30,
(in thousands) 2012 2011
Assets
Current assets:
Cash and cash equivalents $ 307,336 $ 410,799
Accounts receivable, net 211,488 177,940
Inventories 196,558 198,183
Prepaid expenses and other current assets 36,950 29,412
Property, plant and equipment, net 252,312 251,365
Goodwill and intangible assets, net 913,920 749,849
Other assets 88,762 72,841
Total assets $ 2,007,326 $ 1,890,389
 
Liabilities and Equity
Current liabilities:
Convertible notes $ - $ 26,089
Accounts payable 136,677 115,290
Accrued liabilities and other current liabilities 105,965 105,717
Other long-term liabilities 44,440 34,198
Stockholders' equity 1,720,244 1,609,095
Total liabilities and equity $ 2,007,326 $ 1,890,389
 




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