Skyworks Triples Profit - TheStreet

Skyworks Triples Profit

The chipmaker's revenue is in line with estimates.
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Skyworks Solutions

(SWKS) - Get Report

nearly tripled its bottom line in its fiscal third quarter, despite weakness at one of its largest customers.

The Woburn, Mass., chipmaker reported sales of $175.2 million in the three months ended June 29, in line with analyst expectations.

At this time a year ago, Skyworks had revenue of $187.6 million, although those results included the now-divested baseband chip business.

Net income during the quarter was $11.4 million, or 7 cents a share, vs. $3 million, or 2 cents a share, at this time a year ago.

Excluding stock option compensation expenses, Skyworks had EPS of 11 cents a share, 2 cents higher than the average analyst expectation.

"Skyworks ability to exceed earnings per share expectations despite the dynamics at a large tier-one handset OEM, demonstrates the diversity of our portfolio and the strength of the company's new business model," CEO David Aldrich said in a statement.

That customer may be troubled handset vendor

Motorola

(MOT)

, which accounted for 23% of Skyworks' revenue in 2006.

Aldrich said that the upcoming launch of third-generation cell phone products among new and existing customers and the momentum in its linear chip products are positioning Skyworks to outpace market growth.

"At the same time, we believe crisp operational execution will enable future gross margin expansion and bottom-line improvement," said Aldrich.

Skyworks said adjusted EPS in the current quarter will range between 12 cents and 14 cents vs. the average analyst expectation of 12 cents.

The company's revenue guidance for the current quarter was on the low end of Wall Street expectations, however.

Skyworks projected top-line growth of 6% to 10% sequentially, suggesting a range of $185.6 million and $192.6 million. Analysts polled by Thomson Financial were looking for $191.9 million in sales.

Shares of Skyworks were up 1.7%, or 14 cents, at $8.39 in extended trading Wednesday.