Skyworks Solutions, Inc
) posted a net income of $34.0 million or $0.18 per diluted share
compared to a net income of $49.9 million or $0.26 per diluted
share in the previous quarter and a net income of $57.1 million or
$0.30 per share in the second quarter of fiscal 2012.
Excluding acquisition-related charges but including stock-based
compensation expense, Skyworks reported net income of $0.32 per
share, in-line with the Zacks Consensus Estimate.
Skyworks reported revenues of $364.7 million in the first
quarter, up 12% year over year and surpassed management's guidance
of $360.0 million.
Skyworks continues to weather the turbulent economic conditions
well. The company has strategically positioned itself as a
diversified company. The global megatrends of mobile computing and
ubiquitous connectivity continue to be growth engines for
Skyworks continues to benefit from strong underlying demand in
the mobile Internet market driven by market share gains and new
product ramps. LTE shipments are expected to grow by leaps and
bounds in 2012. Management expects smartphone adoption will
gain further traction in developing countries in 2012.
In particular, smartphone growth in India and China is expected
to double in 2012. Another strong area of growth is tablets, which
continues to replace PCs.
Gross margin came in at 43.9%, down from 44.3% in the previous
quarter but up from 43.2% in the year-ago quarter. Operating margin
came in at 26.1% versus 26.7% in the previous quarter and 23.0% in
the year-ago quarter.
Skyworks generated $117 million in cash flow from operations and
invested $26 million in capital expenditures. The company does not
have any debt on its balance sheet as of now.
The company ended the quarter with cash and equivalents of
$307.4 million, down from $446.5 million at the end of the previous
Going forward, management expects revenues of approximately $383
million in the second quarter of fiscal 2012. Skyworks expects
sequential growth in both top-line and bottom-line driven by LTE
and smartphone program ramps coupled with increasing traction in
adjacent high performance analog applications.
Gross margin is projected at around 43.5%. Management expects
gross margins as sequential revenue growth resumes and the company
realizes synergies associated with the AATI acquisition. Skyworks
expects EPS of $0.44 in the second quarter.
We continue to maintain a Neutral recommendation on Skyworks.
Nevertheless, we have a Zacks #1 Rank on Skyworks, which translates
into a short-term rating of Buy.
SKYWORKS SOLUTN (SWKS): Free Stock Analysis
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