Gary Lerude, MWJ Technical Editor
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Gary Lerude

Gary Lerude is the Technical Editor of Microwave Journal. Previously, he spent his career as a “midwife” aiding the growth of the compound semiconductor industry, from device to application, from defense to commercial. He spent 19 years at Texas Instruments, 11 years at MACOM and six years with TriQuint. Gary holds a bachelor’s in EE, a master’s in systems engineering and an engineers degree (ABD) in EE.

Broadband Channel / Cellular 4G/LTE Channel / Industry News / IoT/M2M/V2V Channel / 5G/Massive MIMO Channel / RFIC Channel

Skyworks Tops $1B in Quarterly Revenue

February 6, 2018

Reflecting strong demand from wireless applications, Skyworks exceeded $1 billion in quarterly revenue for the first time, generating $361 million in cash from operations to end the quarter with $1.7 billion in cash and no debt.

Revenue during the first fiscal quarter of 2018 was $1.05 billion, up 7 percent sequentially and 15 percent year-over-year. Skyworks benefitted from the iPhone launch, generating slightly more than 75 percent of the quarter’s revenue from mobile, the remainder from what Skyworks calls “broad markets” — largely Wi-Fi and IoT.

Skyworks revenue history.

Skywork’s non-GAAP gross margin was 51.4 percent and the non-GAAP operating margin reached 39.4 percent, compared to the company’s model of 53 percent and 40 percent, respectively.

Kris Sennesael, Skyworks CFO, said insourcing filters will improve gross margin, along with revenue growth and ongoing efforts improving operational efficiency. The company intends to produce at least 75 percent of its filter needs in house, leveraging the SAW filter capability acquired from Panasonic.

A press release announcing the quarterly results contained a long list of mobile and IoT wins, including

  • Motorola, Oppo, Vivo and Xiaomi smartphone launches with SkyLiTE™, Wi-Fi and switching products; and ZTE and HTC mobile phones with SkyOne® Wi-Fi and SkyBlue™ products
  • Comcast’s DOCSIS 3.1 broadband routers, NetGear’s Orbi Wi-Fi system, Amazon’s Kindle Oasis e-readers, Nest’s residential alarms, Google Home Max wireless speakers, Sylvania’s smart light bulbs and XY Findables
  • Massive MIMO for a “leading infrastructure provider for China.”

Skyworks’ guidance for the March quarter is revenue growth between 6 percent and 8 percent year-over-year, which would be $911 million at the midpoint of the range and represent a sequential decline of 13 percent.

Liam Griffin, Skyworks CEO, sees mobile growth accelerating during the second half of the calendar year, aligned with the next iPhone launch. He said revenue in the broad markets segment is not as seasonal, growing consistently for the foreseeable future — in the mid-teens — because of the large number of customers and opportunities. Griffin expects 5G to contribute material revenue in 2019 and will be steady over several years.

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