Skyworks Exceeds Q4 FY16 Expectations

Skyworks Solutions, Inc. (NASDAQ: SWKS) an innovator of high performance analog semiconductors connecting people, places and things, today reported fourth fiscal quarter and year-end results for the period ending September 30, 2016. Revenue for the fourth fiscal quarter was $835.4 million, up 11 percent sequentially, exceeding the Company's guidance and consensus estimates.

On a GAAP basis, operating income for the fourth fiscal quarter of 2016 was $291.9 million with diluted earnings per share of $1.31. On a non-GAAP basis, operating income was $318.4 million with non-GAAP diluted earnings per share of $1.47, $0.04 better than the Company's guidance and consensus estimates. Cash flow from operations for the quarter was $455.0 million.

For fiscal year 2016, revenue was a record $3.3 billion with GAAP diluted earnings per share of $5.18 and cash flow from operations of $1.1 billion. Non-GAAP diluted earnings per share for fiscal year 2016 was $5.57.

"As our results and outlook reflect, Skyworks is capitalizing on the strength of both Mobile and Internet of Things ecosystems," said Liam K. Griffin, president and chief executive officer of Skyworks. "Specifically, we are in the midst of a dramatic sea change in the usage case for wireless technologies and the way they are transforming how we live, work and play. As a virtual hub for e-commerce, enterprise to the cloud, social media, gaming and entertainment, mobile devices are rapidly evolving to address the massive demand for data and speed across an increasingly crowded spectrum. Skyworks is resolving this daunting complexity with customized system-level solutions to ultimately improve the user experience with higher levels of efficiency, enhanced streaming capabilities and expanded network coverage. As a result, we are well positioned to continue delivering above-market growth, profitability and shareholder value."

Fourth Fiscal Quarter Business Highlights
  • Leveraged SkyOne® across Huawei's Honor 8 global platform
  • Powered Google's flagship Pixel 4G LTE smartphones
  • Secured multiple 4G LTE design wins with leading Chinese OEMs including Asus, Gionee, HTC, Meizu, Oppo, Xiaomi and ZTE
  • Commenced volume production of diversity receive and antenna tuner solutions
  • Supported Amazon's Echo and Tap virtual assistant devices
  • Enabled Netgear's Orbi router with connectivity and analog control ICs
  • Launched linear power amplifiers in support of small cell ramps in China
  • Delivered integrated 4G LTE modules for Jaguar and Land Rover automobiles
  • Ramped vehicle-to-vehicle communication modules for Alps
  • Captured ZigBee® content in Trilliant's smart grid communication systems
  • Designed into a premier medical imaging OEM for MRI applications
  • Integrated GPS, connectivity and switching solutions for GoPro drones

First Fiscal Quarter 2017 Outlook

We provide earnings guidance solely on a non-GAAP basis because certain information necessary to reconcile such guidance to GAAP is difficult to estimate and dependent on future events outside of our control. Please refer to the attached Discussion Regarding the Use of Non-GAAP Financial Measures in this press release for a further discussion of our use of non-GAAP measures, including quantification of known expected adjustment items.

"Entering fiscal year 2017, we are leveraging our scale, customer partnerships and differentiated system solutions to capture increasing content per platform across mobile connectivity and Internet of Things applications," said Kris Sennesael, senior vice president and chief financial officer of Skyworks. "Accordingly, for the first fiscal quarter of 2017, we anticipate our revenue to be up 7 to 9 percent sequentially with operating leverage driving non-GAAP diluted earnings per share of $1.58."

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