9 November 2011

Skyworks grows quarterly revenue more-than-expected 13% to $402.3m

For its fiscal 2011 (to end September), Skyworks Solutions Inc of Woburn, MA, USA (which manufactures linear products, power amplifiers, front-end modules and radio solutions for handset and infrastructure equipment), has reported revenue of $1.419bn, up 32% on fiscal 2010’s $1.072bn.

“We expanded our market share, and we are now the clearly established leader in mobile connectivity,” claims president & CEO David J. Aldrich. “We grew our 3G front-end module shipments by more than 150% over the year,” he adds.

For the fiscal fourth-quarter, revenue was a record $402.3m, with 70% coming from handsets and 30% from linear high-performance analog (HPA) products (compared with 75% and 25% last quarter, and 80% and 20% a year ago). Revenue was up 13% on $356.1m last quarter and up 28.4% on $313.3m a year ago (and exceeding guidance of $400m). However, excluding revenue from the acquisition of fabless RF front-end IC supplier SiGe Semiconductor (on 10 June), Skyworks grew organically by 6% sequentially and 18% year-on-year.

“Skyworks’ solid performance demonstrates the strength of our diversified business model, continued share gains and operational leverage,” says president & CEO David J. Aldrich.

On a non-GAAP basis, gross margin is up from 43.8%a year ago to 44.7%, though down slightly from 44.9% last quarter. Nevertheless, full-year gross margin has risen from fiscal 2010’s 43% to 44.6%.

Operating expenses have risen from $62.5m last quarter to $70.3m. Despite this, operating income for Q4 was $109.4m, up from $97.6m last quarter and $81.8m a year ago. Full-year operating income has risen from fiscal 2010’s $246.3m to $384.7m. Net income has risen from $78.8m a year ago and $93m last quarter to $103.8m, boosting full-year net income from fiscal 2010’s $229.5m to $360.3m.

During the quarter, Skyworks generated a record $122.8m in cash flow from operations (boosting the full year to $366m). Capital expenditure was reduced again (from $20m last quarter to $15.3m, returning to steady-state levels after capacity investments in the firm’s facilities in Mexicali and Newbury Park). Free cash flow was hence $108m. However, after repurchasing 500,000 shares, cash and cash equivalents fell from $459m to $410.8m.

During the quarter, Skyworks ramped 3G/LTE multimode, multiband solutions for Samsung’s next-generation Galaxy S II smart-phone platforms; supported ZTE’s launch of tablets and notebooks with EDGE and WCDMA/LTE front-end solutions; introduced a family of low-noise amplifiers for wireless infrastructure and networking applications; shipped switch matrix solutions to Siemens Healthcare for deployment in their magnetic resonance imaging (MRI) scanners; was designed into a leading manufacturer's platform for hearing aids using ultra-low-power amplifiers; and started volume shipments of ZigBee-enabled solutions to multiple ODMs in support of home security applications

For fiscal first-quarter 2012, Skyworks expects revenue of $390m, down 3% sequentially but up 16% year-on-year. Gross margin outlook should fall slightly to 44-44.5%. “Our guidance reflects near-term market weakness, largely offset by new program ramps,” says VP & chief financial officer Donald W. Palette. The guidance excludes any contribution from the acquisition of Advanced Analogic Technologies Inc of Santa Clara, CA, USA (a semiconductor firm focused on enabling energy-efficient devices for application-specific power management in feature-rich consumer electronic devices as well as devices in computing, industrial, medical and communications applications).

“Despite the current economic environment, we believe that long-term industry fundamentals remain strong as analog content and complexity continue to increase,” says Aldrich. “Given our differentiated product portfolio, technology leadership, broad customer engagements and scale, Skyworks is strategically well positioned to capitalize on the growing number of platforms that are becoming wirelessly enabled and, in turn, to outperform our addressed markets,” he reckons.

See related items:

Skyworks quarterly revenue up 27% year-on-year to $356.1m, beating guidance

Skyworks’ revenue exceeds guidance, up 37% year-on-year

Skyworks grows revenue 7% to record $335.1m

Skyworks’ revenue exceeds revised guidance; up 14% to record $313.3m

Tags: Skyworks

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