Skyworks Swings to a Profit

The company beats earnings estimates as revenue jumps 45%.
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(SWKS) - Get Report

swung to a profit in the fourth quarter, beating the consensus analysts' earnings estimate.

The company said after the bell Wednesday that it earned $18.1 million, or 11 cents a share, compared with a year-ago loss of $42.9 million, or 30 cents a share.

The Woburn, Mass.-based wireless chipmaker said excluding special charges, pro forma net earnings amounted to 12 cents a share.

Revenue rose to $218.1 million, up 45% from year-ago levels and up 5% from the prior quarter.

Analysts had been expecting 11 cents a share in pro forma earnings on $218 million in revenue.

In the quarter now under way, Skyworks said it expects sales to rise on a sequential basis. In a prepared statement, CFO Allan Kline said, "We expect share gains and our increasing content per handset to more than offset market softness in China, enabling modest revenue growth in the first fiscal quarter

of 2005."

He also predicted gross margins will rise and operating expenses, as a percent of sales, will fall. The combination should drive a 10% sequential improvement in operating income.

Heading into the company's postclose conference call, analysts were looking for 13 cents in earnings on $229 million in revenue for the quarter ending in December.

After the bell shares dropped 31 cents, or 3.3%, to $9.14. In regular trading, the stock closed up 52 cents, or 5.8%, to $9.45.