SAN FRANCISCO -- Skyworks Solutions ( SWKS) said better-than-expected demand for its cell phone chips will strengthen its financial results for the recently ended quarter. The Woburn, Mass.-based company said Thursday that revenue and earnings for its fiscal first quarter, to be reported next week, will be at the high-end of its initial projections. The pre-announcement sent Skyworks shares up 4%, or 32 cents, to $8.01 in midday trading Thursday. Skyworks attributed its financial upside to "better-than-expected traction with the company's diversified Linear Products portfolio and multimode content growth within the mobile handset." While fears of an imminent recession and a slowdown in consumer spending on electronics
have pounded chip stocks of late, Skyworks is the latest firm to hint that cell phone sales are holding up. In December, Texas Instruments ( TXN) and National Semiconductor ( NSM) both reported strong demand for cell phone chips. TI said at the time that orders for chips used in both high-end cell phones as well as low-priced models had not slackened in December. And the demand that Skyworks is now reporting in multimode chips -- which allow cell phones to operate on multiple radio frequencies and across various standards like WCDMA and EDGE -- suggest advanced cell phones sold well during the holiday season. Skyworks said in November that it anticipated revenue growth "approaching 10%" in the fiscal first quarter, compared to the fourth quarter's $190.5 million, with EPS, excluding stock option compensation expenses, between 15 cents and 17 cents. The average analyst expectation calls for Skyworks to earn 16 cents a share on revenue of $207.9 million.