FREE subscription
Subscribe for free to receive each issue of Semiconductor Today magazine and weekly news brief.

































3 November 2006


Skyworks revenues and operating profits rise, excluding base-band shutdown costs

For its fiscal fourth quarter 2006 (to end September), Skyworks Solutions Inc of Woburn, MA, USA has reported revenue of $198.2m, within its guidance range of $197-200m.

Revenue in its core analog and RF business was $194m, up 4% sequentially and 18% year-on-year. Shipments of WCDMA power amplifier more than doubled sequentially. Shipments of Helios transceivers were over 5 million, up from 2 million the previous quarter and 100,000 a year ago.

On 2 October, Skyworks said it was ceasing its baseband operations immediately and implementing a strategic restructuring. GAAP revenue (in accordance with generally accepted accounting principles) was $193.1m, including a restructuring-related revenue reserve of $5m for future
potential baseband product returns as it exited this business.

On a pro forma basis, operating income was $11.6m, up 15% sequentially and 31% year-on-year, while net income was $10.4m. However, including $90m of asset impairments, severance and shut-down costs related to the exit of the baseband product sector, as well as $3.9m of equity-based compensation, gives a GAAP operating loss of $83.2m. Including a $12m non-cash charge (as part of a tax reorganization designed to lower future cash tax liabilities),
the GAAP net loss was $96.4m.

In fiscal Q4/2006, Skyworks generated $22m of cash flow from operations; cash and cash equivalents as well as short-term investments rose by $17m sequentially to $171.2m.

"Post restructuring, we plan to deliver above-market growth driven by our portfolio of differentiated linear products, leadership front-end modules and highly integrated Helios radios," says David J. Aldrich, president and chief executive officer. "At the same time, we intend to demonstrate our financial leverage through gross margin expansion, increased asset turns and significant cash flow generation."

For its fiscal first-quarter 2007, Skyworks aims to increase gross margins to 38.5% and approximately double pro forma operating income.