) reported a net income of 44 cents per share in the fourth
quarter of fiscal 2012 (excluding acquisition-related charges but
including stock-based compensation expense), beating the Zacks
Consensus Estimate by a penny.
Reported net income was $61.6 million or 32 cents per share
compared to a net income of $49.3 million or 26 cents per diluted
share in the previous quarter and a net income of $64.2 million
or 34 cents per diluted share in the year-ago quarter.
Skyworks reported revenues of $421.1 million, up 4.7% year
over year and 8.2% sequentially and surpassed management's
updated guidance of $420.0 million. For fiscal 2012, revenue
of $1.6 billion grew 11% year over year.
Skyworks's strategic diversification across OEMs and chipset
partners is enabling the company to deliver consistent results
despite the macroeconomic uncertainty.
Skyworks continues to capitalize on global mobile connectivity
ubiquity and demand for high performance analog solutions across
a diverse set of vertical markets. The company is rapidly
expanding its footprint in complementary new verticals like
automotive, medical and connected home. Skyworks continues
to gain market share in adjacent vertical markets like
automotive, medical, avionics, military, location services and
Mobile internet growth continues to be healthy, driven by
smartphones and tablets. The need for high-performance
analog solutions is expanding into brand-new markets, such as
medical, automotive, military and industrial, thereby fueling
demand for broadband connectivity.
In recent times, macro trends such as social networking,
cloud-based content and the explosion of audio and video
streaming continue to unify, thus driving increased semiconductor
content and complexity in smartphones, tablets, ultrabooks and
e-readers as well as within the supporting network
The global increase in mobile broadband phenomenon is slowly
displacing traditional computing, which is further augmented by
the entry of bigwigs like
). In addition, RF content per device continues to rise on the
remarkable increase in the number of LTE-enabled devices and a
major smartphone upgrade cycle, beginning in the emerging markets
Skyworks is actively participating in developing activities,
which support major 2013 phone models that incorporate entirely
new LTE bands like 9 and 10; 18, 19 and 38, 41, to support
deployments in Europe and Asia, which shall result in incremental
Gross margin came in at 42.9%, slightly down from 43.2% in the
previous quarter and 44.7% in the year-ago quarter. Operating
margin came in at 24.6% versus 23.6% in the previous quarter and
27.2% in the year-ago quarter.
Skyworks generated $50 million in cash flow from operations
and incurred $31 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
$307.1 million, down from $327.9 million at the end of the
Going forward, management expects revenues of approximately
$450 in the first quarter of fiscal 2013, up 14% year over year
and 7% sequentially, driven by new platform wins and design
Skyworks believes that its strategy of diversifying its
business, expanding into new verticals and continued focus
operational execution will drive growth even in a weak economic
Gross margin is projected at around 43.0%. Operating expenses
are projected to be $80 million. Management expects gross margin
to improve as the company benefits from current capital
investments and ramp up of margin accretive products like SkyOne,
SkyHi along with its portfolio of high-performance analog
products. Operating margin is anticipated to be approximately
25%. Skyworks expects earnings per share of 54 cents in the first
However, the results did not seem to impress investors as the
company's shares lost 5.61% in after hours trading to close at
We continue to maintain a Neutral recommendation on Skyworks.
Our recommendation is supported by a Zacks #3 Rank on Skyworks,
which translates into a short-term rating of Hold.
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