Skyworks More Than Triples Pro Forma Net Income and EPS for the Second Fiscal Quarter of 2007 on a Year-Over-Year Basis
WOBURN, Mass.--(BUSINESS WIRE)--April 25, 2007--Skyworks Solutions, Inc. (NASDAQ:SWKS), an innovator of high performance analog and mixed signal semiconductors enabling mobile connectivity, today announced second fiscal quarter revenue of $180.2 million, consistent with the guidance provided at the end of the first fiscal quarter, and up five percent when compared to core revenue (i.e., excluding baseband sales) of $172.3 million in the same period a year ago. On a pro forma basis, second fiscal quarter operating income was $17.6 million, versus $6.7 million in the second fiscal quarter of the prior year, while net income was $16.7 million compared to $4.6 million in the year-ago period, up 263 percent. Pro forma diluted earnings per share for the second fiscal quarter was $0.10, in line with consensus estimates and an increase of 233 percent when compared to $0.03 in the second fiscal quarter of 2006. GAAP operating income for the second fiscal quarter was $13.0 million, a 420 percent improvement over $2.5 million a year ago. GAAP net income and diluted earnings per share for the second fiscal quarter were $12.2 million and $0.08, respectively, versus $0.9 million and $0.01 in the same period in 2006. "Skyworks' second fiscal quarter results demonstrate the strength of our new business model and reflect our efforts since exiting the baseband product area two quarters ago. We have since focused exclusively on our core analog and RF businesses and have improved profitability more than three-fold year over year," said David J. Aldrich, Skyworks' president and chief executive officer. "Our earnings leverage will become even more evident as we ramp several key, high profile programs over the next several months." Second Fiscal Quarter Highlights -- Raised $200 million via a convertible debt offering at an average interest rate of 1.375 percent -- Redeemed $130 million of short term 4.75 percent convertible debt -- Repurchased 4.3 million shares of common stock -- Expanded Linear Products portfolio with 15 new products, including CMOS switches, high-performance gain blocks and personal area networking solutions targeting broadband, infrastructure, medical, and automotive applications -- Received production orders for a front-end solution in support of a forthcoming multimedia, music platform -- Powered several highly popular models with HeliosTM, including LG's GPRS ChocolateTM series and Samsung's ultra slim EDGE TraceTM -- Unveiled HeliosTM WEDGE transceiver, the industry's first single chip all CMOS radio solution that eliminates the need for interstage filters Business Outlook "For the third fiscal quarter, we anticipate that several of new product ramps will largely offset the weakness at a top-tier handset OEM and enable us to deliver pro forma diluted earnings per share between $0.08 and $0.11," said Allan M. Kline, Skyworks' vice president and chief financial officer. Estimated pro forma diluted earnings per share excludes approximately $3.2 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' Second Fiscal Quarter 2007 Conference Call Skyworks will host a conference call with analysts to discuss its second fiscal quarter 2007 results and current business prospects on April 25, 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 877.704.5385 (domestic) or 913.312.1303 (international), confirmation code: 6116430. Playback of the conference call will begin at 9:00 p.m. ET on April 25, and end at 9:00 p.m. ET on May 2, 2007. The replay will be available on Skyworks' Web site or by calling 888.203.1112 (domestic) or 719.457.0820 (international); pass code: 6116430.