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18 July 2008


Skyworks grows faster-than-expected 23% year-on-year

For its fiscal third-quarter 2008 (ended 27 June), Skyworks Solutions Inc of Woburn, MA, USA, which manufactures linear products, power amplifiers, front-end modules and radio solutions for handset and infrastructure equipment, has reported revenue of $215.2m, up 6.7% on $201.7m last quarter and 23% on $175.1m a year ago (and above the firm’s guidance of $210m).

Gross margin has risen from 39.8% last quarter to 40.2% (the fifth consecutive quarter of improvement). Net income has nearly doubled from $11.4m a year ago to $20.5m. Skyworks also generated $26.2m of cash flow from operations, raising the total in fiscal 2008 so far to $122m.

During the quarter, Skyworks ramped energy management solutions in support of automated meter reading (AMR), advanced metering infrastructure (AMI) and ZigBee applications; supported Microsoft’s Sync initiative with low power control ICs, enabling fully integrated, voice-activated in-car communications for mobile phones and digital music; captured strategic reference design wins at Qualcomm for forthcoming CDMA2000, EDGE and 3G HSDPA architectures; and powered more than 10 new Samsung 3G handset models (including the first European mobile TV slider phone).

“Skyworks is delivering profitable growth driven by increasing diversification in wireless and adjacent analog markets, share gains and strong operational execution,” says president and CEO David J. Aldrich. “We believe that our unique technical breadth and manufacturing scale are strategically differentiating Skyworks and positioning us for sustainable, above-market revenue growth with improving fundamentals,” he adds.

“New program launches, targeted design win ramps and market share gains are translating into improving order visibility,” says VP and chief financial officer Donald W. Palette. For fiscal Q4/2008 (to end-September), Skyworks therefore expects revenue to rise another 4.6%, to $225m. “At the same time, we plan to deliver further operational improvements in product yields, equipment efficiency and cycle times,” he adds. “In turn, we intend to expand gross and operating margins.”

See related item:

Skyworks exceeds $200m quarterly revenue guidance

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