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Skyworks Exceeds Q3 FY12 Revenue And EPS Estimates

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 Nine Months Ended

June 29,

 

July 1,

June 29,

 

July 1,

(in thousands, except per share amounts) 2012 2011 2012 2011
 
Net revenue $ 389,038 $ 356,075 $ 1,147,468 $ 1,016,606
Cost of goods sold   223,736     199,850     658,044     570,862  
Gross profit 165,302 156,225 489,424 445,744
 
Operating expenses:
Research and development 56,050 43,067 155,977 121,228
Selling, general and administrative 37,463 35,451 120,609 98,167
Amortization of intangibles 8,608 4,006 24,260 7,246
Restructuring and other charges   1,137     1,475     7,752     1,475  
Total operating expenses 103,258 83,999 308,598 228,116
 
Operating income 62,044 72,226 180,826 217,628
 
Interest expense (10 ) (465 ) (598 ) (1,463 )
Gain on early retirement of convertible debt - - 139 -
Other income (loss), net   96     (2 )   (115 )   (185 )
Income before income taxes 62,130 71,759 180,252 215,980
Provision for income taxes   12,813     20,211     39,776     53,604  
Net income $ 49,317   $ 51,548   $ 140,476   $ 162,376  
 
Earnings per share:
Basic $ 0.26 $ 0.28 $ 0.76 $ 0.89
Diluted $ 0.26 $ 0.27 $ 0.74 $ 0.85
Weighted average shares:
Basic 186,269 183,750 185,144 182,642
Diluted 192,457 191,380 191,051 190,628
 
 
SKYWORKS SOLUTIONS, INC.
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
       
Three Months Ended Nine Months Ended

June 29,

 

July 1,

June 29,

 

July 1,

(in thousands) 2012 2011 2012 2011
 
GAAP gross profit $ 165,302 $ 156,225 $ 489,424 $ 445,744
Share-based compensation expense [a] 2,111 2,178 7,030 5,397
Acquisition-related expenses [b]   652     1,617     3,574     1,617  
Non-GAAP gross profit $ 168,065   $ 160,020   $ 500,028   $ 452,758  
 
Non-GAAP gross margin % 43.2 % 44.9 % 43.6 % 44.5 %
   
Three Months Ended Nine Months Ended

June 29,

July 1,

June 29,

July 1,

(in thousands) 2012 2011 2012 2011
 
GAAP operating income $ 62,044 $ 72,226 $ 180,826 $ 217,628
Share-based compensation expense [a] 18,569 14,543 53,653 42,688
Acquisition-related (credits) expenses [b] (4,040 ) 2,857 8,056 3,505
Amortization of intangible assets 8,608 4,006 24,260 7,246
Restructuring & other charges [c] 1,137 1,475 7,752 1,475
Litigation settlement gains and losses [d] 5,261 2,300 5,778 2,300
Deferred executive compensation   143     143     429     451  
Non-GAAP operating income $ 91,722   $ 97,550   $ 280,754   $ 275,293  
 
Non-GAAP operating margin % 23.6 % 27.4 % 24.5 % 27.1 %
   
Three Months Ended Nine Months Ended

 

June 29,

July 1,

June 29,

July 1,

(in thousands) 2012 2011 2012 2011
 
GAAP net income $ 49,317 $ 51,548 $ 140,476 $ 162,376
Share-based compensation expense [a] 18,569 14,543 53,653 42,688
Acquisition-related (credits) expenses [b] (4,040 ) 2,857 8,056 3,505
Amortization of intangible assets 8,608 4,006 24,260 7,246
Restructuring & other charges [c] 1,137 1,475 7,752 1,475
Litigation settlement gains and losses [d] 5,261 2,300 5,778 2,300
Deferred executive compensation 143 143 429 451
Gain on early retirement of convertible debt [e] - - (139 ) -
Amortization of discount on convertible debt [f] - 339 428 1,000
Tax adjustments [g]   7,083     15,827     21,388     35,423  
Non-GAAP net income $ 86,078   $ 93,038   $ 262,081   $ 256,464  
   
Three Months Ended Nine Months Ended

June 29,

July 1,

June 29,

July 1,

2012 2011 2012 2011
 
GAAP net income per share, diluted $ 0.26 $ 0.27 $ 0.74 $ 0.85
Share-based compensation expense [a] 0.10 0.08 0.28 0.22
Acquisition-related (credits) expenses [b] (0.02 ) 0.02 0.04 0.02
Amortization of intangible assets 0.04 0.02 0.13 0.04
Restructuring & other charges [c] - 0.01 0.04 0.01
Litigation settlement gains and losses [d] 0.03 0.01 0.03 0.01
Amortization of discount on convertible debt [f] - - - 0.01
Tax adjustments [g]   0.04     0.08     0.11     0.19  
Non-GAAP net income per share, diluted $ 0.45   $ 0.49   $ 1.37   $ 1.35  
 

SKYWORKS SOLUTIONS, INC.

DISCUSSION REGARDING THE USE OF NON-GAAP FINANCIAL MEASURES

Our earnings release contains some or all of the following financial measures which have not been calculated in accordance with United States Generally Accepted Accounting Principles (“GAAP”): (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating income and operating margin, (iii) non-GAAP net income, and (iv) non-GAAP net income per share (diluted). As set forth in the “Unaudited Reconciliation of Non-GAAP Financial Measures” table found above, we derive such non-GAAP financial measures by excluding certain expenses and other items from the respective GAAP financial measure that is most directly comparable to each non-GAAP financial measure. Management uses these non-GAAP financial measures to evaluate our operating performance and compare it against past periods, make operating decisions, forecast for future periods, compare operating performance against peer companies and determine payments under certain compensation programs. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-recurring expenses (which may not occur in each period presented) and other items that management believes might otherwise make comparisons of our ongoing business with prior periods and competitors more difficult, obscure trends in ongoing operations or reduce management’s ability to make useful forecasts.

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