Skyworks Exceeds Earnings Expectations for the Third Fiscal Quarter of 2007
WOBURN, Mass.--(BUSINESS WIRE)--July 18, 2007--Skyworks Solutions, Inc. (NASDAQ:SWKS), an innovator of high performance analog and mixed signal semiconductors enabling mobile connectivity, today announced third fiscal quarter revenue of $175.1 million (net of $105 thousand restructuring adjustment) consistent with the guidance provided at the end of the second fiscal quarter. On a pro forma basis, third fiscal quarter operating income was $17.0 million, versus $10.1 million in the third fiscal quarter of the prior year, while net income was $16.8 million compared to $8.0 million in the year-ago period. Pro forma diluted earnings per share for the third fiscal quarter was $0.11, two cents ahead of consensus estimates and up 120 percent when compared to $0.05 in the third fiscal quarter of 2006. GAAP operating income for the third fiscal quarter was $12.4 million versus $5.9 million a year ago. GAAP net income and diluted earnings per share for the third fiscal quarter were $11.4 million and $0.07, respectively, versus $3.0 million and $0.02 in the same period in 2006. "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," said David J. Aldrich, Skyworks' president and chief executive officer. "Looking forward, linear products momentum coupled with multiple 3G product ramps spanning both new and existing customers, are positioning Skyworks to outpace market growth. At the same time, we believe crisp operational execution will enable further gross margin expansion and bottom-line improvement." Third Fiscal Quarter Highlights -- Expanded pro forma gross margin 50 basis points sequentially to 38.8 percent (39.2 percent on a GAAP basis) -- Awarded Supplier of the Year by Sony Ericsson and Nortel -- Unveiled a host of new linear products for WiMAX, high definition television tuner, remote meter reading and medical imaging applications -- Captured key sockets at Huawei with highly integrated base station solutions -- Launched CDMA and EDGE front-end modules in support of Motorola's recently introduced RAZR 2 series -- Ramped Intera(TM) front-end modules and Helios(TM) radios for LG's record-selling Shine(TM) phone and Samsung's new SGH-U600 Ultra Series handsets, respectively -- Supported Sony Ericsson's recent debut of their HSDPA-capable handset platforms including the multiband, WEDGE K850 cybershot camera phone Fourth Fiscal Quarter Outlook "We anticipate top line growth of 6 to 10 percent on a sequential basis fueled by new, multimode product launches and the transition of several key design wins into high volume production," said Allan M. Kline, Skyworks' vice president and chief financial officer. "Operationally, we plan to expand our gross margin and record pro forma earnings per share of $0.12 to $0.14." Estimated pro forma diluted earnings per share exclude approximately $3.5 million of FASB Statement No. 123R-related expenses. Pro forma results, which are a supplement to financial results based on GAAP, exclude certain charges including equity-based compensation, amortization of intangible assets, baseband exit charges, and non-recurring items. The company believes these non-GAAP financial measures provide useful information to both management and investors by excluding certain charges and non-recurring items that may not be indicative of Skyworks' ongoing operations and economic performance. Skyworks' Third Fiscal Quarter 2007 Conference Call Skyworks will host a conference call with analysts to discuss its third fiscal quarter 2007 results and current business prospects on July 18, 2007, at 5:00 p.m. Eastern time (ET). To listen to the conference call via the Internet, please visit the Investor Relations section of Skyworks' Web site. To listen to the conference call via telephone, please call 866.409.1555 (domestic) or 913.312.1235 (international), confirmation code: 4509631. Playback of the conference call will begin at 9:00 p.m. ET on July 18, and end at 9:00 p.m. ET on July 25, 2007. The replay will be available on Skyworks' Web site or by calling 888.203.1112 (domestic) or 719.457.0820 (international); pass code: 4509631.