Skyworks cuts June-quarter financial guidance due to US restrictions on exports to Huawei

In response to the US Department of Commerce’s Bureau of Industry and Security (BIS) in mid-May adding smartphone and telecom network infrastructure maker Huawei Technologies Co Ltd and 68 of its affiliates to its ‘Entity List’ prohibiting the sale to Huawei of products covered by the Export Administration Regulations (EAR) without obtaining an appropriate export license, analog and mixed-signal semiconductor maker Skyworks Solutions Inc of Woburn, MA, USA has ceased all shipments to Huawei and its affiliates.

Skyworks’ past shipments to Huawei and its affiliates include both mobile and wireless infrastructure solutions, contributing about 12% of the firm’s total revenue during the first six months of fiscal 2019.

Hence, assuming that no further shipments to Huawei occur during Skyworks’ fiscal third-quarter 2019 (ending 28 June), the firm has cut its financial guidance (provided on 2 May) for revenue from $815-835m to $755-775m and for non-GAAP diluted earnings per share (EPS) from $1.50 to $1.34.

Skyworks adds that it cannot currently predict if and when shipments to Huawei will resume.

See related items:

Skyworks’ quarterly revenue falls 11% year-on-year to $810m

Tags: Skyworks

Visit: www.skyworksinc.com