Skyworks Exceeds Q3 FY13 Revenue And EPS Guidance

Skyworks Solutions, Inc. (NASDAQ: SWKS) an innovator of high performance analog semiconductors enabling a broad range of end markets, today reported third fiscal quarter 2013 results for the period ending June 28, 2013. Revenue for the quarter was $436.1 million, up 12 percent when compared to $389.0 million in the third fiscal quarter of 2012.

On a non-GAAP basis, operating income for the third fiscal quarter of 2013 was $111.9 million, or 25.7 percent of sales, up from $91.7 million in the comparable period a year ago. Non-GAAP diluted earnings per share for the third fiscal quarter of 2013 was $0.54, a penny better than the Company’s guidance, and a 20 percent increase from the $0.45 in the third fiscal quarter of 2012. On a GAAP basis, operating income for the third fiscal quarter of 2013 was $84.3 million and diluted earnings per share was $0.34.

“Skyworks’ outperformance and outlook for sustainable above market growth reflects our progress towards becoming a highly diversified analog semiconductor market leader,” said David J. Aldrich, president and chief executive officer of Skyworks. “We are capturing margin-accretive content across a broad set of end markets spanning automotive, industrial, smart energy, home automation, medical, mobility and cloud computing. Leading customers within each of these targeted markets are increasingly requiring always-on connectivity and enhanced power efficiency which intersects with our core competencies. Our system-level innovations and scale advantages are translating into accelerating top line growth, margin expansion and, most importantly, returns well in excess of our cost of capital. Accordingly, Skyworks is well positioned to capitalize on the Internet of Things tsunami and to outpace the broader analog semiconductor market while increasing shareholder value.”

Q3 Business Highlights
  • Enabled home sensor networks at an emerging global home health care provider
  • Launched the industry’s lowest noise LNAs supporting GPS, broadband and satellite communication applications
  • Secured telematics and infotainment system design wins with a strategic global automotive supplier
  • Powered Belkin, Cisco and Netgear 802.11ac enterprise routers
  • Ramped voltage regulators across LTE data cards
  • Commenced shipments of wireless networking and ZigBee® solutions in support of security sensors, smoke alarms, motion detectors and touch pads
  • Supported educational tablets and ebooks with backlighting and panel power management semiconductors
  • Gained connectivity and analog control IC content at Huawei, Lenovo and ZTE
  • Captured multiple front-end and wireless networking sockets on Qualcomm LTE reference designs
  • Introduced silicon-based ultra-high speed switching technology for carrier aggregation applications
  • Recorded a 3-fold increase in 4G base station content gains via highly integrated radios incorporating mixer, down converter and IQ modulator functionality

Fourth Fiscal Quarter 2013 Outlook

“Given new program launches and an expanding product pipeline, we expect a strong second half to 2013,” said Donald W. Palette, vice president and chief financial officer of Skyworks. “Specifically, for the current quarter, we anticipate revenue of $475 million, gross margin expansion to the 44.0 to 44.5 percent range and $0.62 of diluted earnings per share, each on a non-GAAP basis.”

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