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News

19 July 2007

 

Skyworks grows profit, driven by linear product launches and 3G ramps

For its fiscal third-quarter (to end June), Skyworks Solutions Inc of Woburn, MA, USA, which manufactures linear products, power amplifiers, front-end modules and radio solutions, has reported revenue of $175.1m (in line with guidance given at the end of the fiscal second quarter). This is down from $180.2m in the March quarter and $196m in the December quarter in the aftermath of problems at handset maker Motorola (which accounted for 23% of Skyworks’ revenues in 2006).

Nevertheless, on a pro forma basis, compared to a year ago, net income has more than doubled from $8.0m a year ago to $16.8m (largely due to Skyworks terminating its loss-making base-band product operations last October) and diluted earnings per share from $0.05 to $0.11 (two cents ahead of consensus estimates).

“Skyworks’ ability to exceed earnings per share expectations despite the dynamics at a large tier-one handset OEM demonstrates the diversity of our portfolio and the strength of the company’s new business model,” says president and CEO David J. Aldrich.

During the June quarter, Skyworks unveiled new linear products for WiMAX, high-definition TV tuners, remote meter reading and medical imaging applications; launched CDMA and EDGE front-end modules in support of Motorola’s recently introduced RAZR 2 series; ramped Intera front-end modules and Helios radios for LG’s record-selling Shine phone and Samsung’s new SGH-U600 Ultra Series handsets, respectively; and supported Sony Ericsson’s recent debut of their HSDPA-capable handset platforms including the multiband, WEDGE K850 cybershot camera phone.

“Looking forward, linear products momentum coupled with multiple 3G product ramps spanning both new and existing customers are positioning Skyworks to outpace market growth,” says Aldrich. “At the same time, we believe crisp operational execution will enable further gross margin expansion and bottom-line improvement.”

For its fiscal fourth-quarter, Skyworks’ VP and chief financial officer Allan M. Kline expects revenue growth of 6-10% on a sequential basis, fueled by new, multimode product launches and the transition of several key design wins into high-volume production. “Operationally, we plan to expand our gross margin and record pro forma earnings per share to $0.12-0.14,” he adds.

See related items:

RFMD and Skyworks gain share in handset PAs: further consolidation likely

Skyworks revenues hit by Motorola slump, but income still triples year-on-year

Visit: http://www.skyworksinc.com