Skyworks Solutions, Inc. (SWKS) an innovator of high performance analog semiconductors connecting people, places and things, today reported third fiscal quarter results for the period ending July 1, 2016. Revenue for the third fiscal quarter was $751.7 million, exceeding the Company’s guidance and First Call consensus estimates.
On a GAAP basis, operating income for the third fiscal quarter of 2016 was $238.6 million with diluted earnings per share of $0.97. On a non-GAAP basis, operating income for the third fiscal quarter of 2016 was $274.7 million with non-GAAP diluted earnings per share of $1.24, $0.03 better than guidance and First Call consensus estimates.
“Skyworks exceeded expectations in the third fiscal quarter of 2016 driven by increasing global demand for high-speed connectivity coupled with strong operational execution,” said Liam K. Griffin, president and chief executive officer of Skyworks. “Our highly integrated solutions are enabling a broad array of applications ranging from streaming media to e-commerce to cloud-based services. Specifically, we are capturing performance-driven content gains within the world’s premium mobile platforms while expanding our customer and end-market reach across the Internet of Things. Accordingly, we are planning for sustained market outperformance with operating leverage.”
Third Fiscal Quarter Business Highlights
Supported Huawei’s P9 platform incorporating 10 unique devices including SkyOne® systems across low, mid and high bands
Launched advanced carrier aggregation capabilities at multiple smartphone OEMs
Ramped SkyBlue™ technology enabling enhanced power management and LED flash drivers
Commenced volume production of proprietary diversity receive solutions
Expanded antenna tuning portfolio enabling higher data rates and smaller footprints
Secured telematics design wins at Continental for 4G LTE automotive systems
Released Bluetooth® Low Energy long range modules for industrial applications
Enabled connectivity within leading always-listening virtual assistant platforms
Supported world’s first head cam with LTE connectivity and 4K streaming video
Powered enterprise radios for the Google 3.5 GHz band ecosystem
Captured digital attenuator and multimode repeater design wins at Audi
Exceeded two billion cumulative shipments of filters from Panasonic joint venture
Repurchased 3 million shares of common stock
Fourth Fiscal Quarter 2016 Outlook
We provide earnings guidance solely on a non-GAAP basis because certain information necessary to reconcile such guidance to GAAP is difficult to estimate and dependent on future events outside of our control. Please refer to the attached Discussion Regarding the Use of Non-GAAP Financial Measures in this press release for a further discussion of our use of non-GAAP measures, including quantification of known expected adjustment items.
“Based on our broad market traction and new program ramps as well as analog and mixed signal content gains, we expect a strong second half of 2016 with further operational improvements,” said Donald W. Palette, executive vice president and chief financial officer of Skyworks. “In particular, for the fourth fiscal quarter of 2016, we anticipate revenue to be up 10 to 11 percent sequentially to $831 million at the midpoint with gross and operating margin expansion driving non-GAAP diluted earnings per share of $1.43. Further, given the confidence in our business model and plans to enhance cash returns to our shareholders, today we are separately announcing that our Board of Directors has authorized a dividend increase and a new stock repurchase program.”