SWKS doubles its dividend.

today announced that its Board of Directors has declared a cash dividend of $0.26 per share of the Company’s common stock, representing a 100 percent increase from the prior quarterly dividend of $0.13 per share.

http://www.digikey.com/Web%20Export/Supplier%20Content/Skywo…

for an idea of what Skyworks chips and switches actually do.

In its more complex implementation, MIMO will facilitate the simultaneous transmission of two (or more) independent data streams between the base station and the handset. The advent of the fourth-generation cellular standard LTE will drive additional diversity path configurations as the smart phones expand the data throughput capabilities for portable devices.
On the mobile connectivity side, switches are vital for routing signals and connecting different radios to antennas. The presence of Bluetooth radios, WiFi connectivity, and mobile television receive capabilities in a smart phone all require additional switching functionality. The attach rate (at which additional functions are added to a handset) for mobile connectivity radios within the smart phone category has grown substantially over recent years. Bluetooth and FM radios have greater than 50 percent attach rates, and Global Positioning System (GPS) and WiFi are approaching 20 percent attach rates

The input is analog which which may mean that few engineers are trained in this compared to digital .Every new broadcast standard improvement means new switches in devices that slowly shrink in the space available for them.

The vast central hinterland of China is still using 3G in most cases, a big market for upgraded phones

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Before I got laid off on May 1, 2007 as a Principle IC (integrated circuit) Layout Designer designing complex state of the art computer chips for 41 years I designed both Analog and digital library I/O cells, standard library cells, logic blocks and computer chips with various processes.

http://www.digikey.com/Web%20Export/Supplier%20Content/Skywo… the logic blocks shows black boxes. I designed what’s inside the black boxes from numbers of schematic pages. With the latest and greatest computer software, a chip like that can be designed in 2 to 3 days with the first pass. Usually, it takes 2 to 3 iterations for completion. Most fabless companies ship the chip design to companies like TSM for fabrication, testing of the fabricated chips if SWKS doesn’t have the million dollar testers to test the chips.

Quillnpenn -

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What I like most is this sentence in the press release: “The increase in quarterly payout… reflects our ongoing confidence in our ability to continue to consistently produce above-market growth and best-in-class financial returns.”

I just can’t imagine they’d say something like that if they weren’t confident in their position with their major customers.

Neil
Long SWKS

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The fact that they are increasing dividend means they are not putting this into research and expanding the business. is this not of concern in a growing company?
Thanks
usha

The fact that they are increasing dividend means they are not putting this into research and expanding the business. is this not of concern in a growing company?

Hi usha, They are making so much money that they have plenty to spare. They also have a stock buyback (which may not be active now).

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thanks