Skyworks Solutions, Inc.
) has added more content in its smartphone platforms based on its
industry-leading light emitting diode (LED) camera flash driver
There is a growing need for high quality photographs among
smartphone users, which in turn is driving implementation of camera
flash drivers in mobile devices. These driver solutions from
Skyworks enable longer battery life for consumers along with a
simplified design, reduced component count and decreased overall
solution size for Original Equipment Manufacturers (OEMs).
According to research, mobile phone cameras will grow to
approximately 2.2 billion units by 2015 from 1.6 billion
units in 2011.
Meanwhile, the colossal demand for smartphones continues to
drive momentum for Skyworks, particularly at Nokia Corporation and
Apple. Skyworks has partnerships with leading smartphone vendors,
such as RIMM, Motorola and Samsung. With a diversified customer
base, Skyworks is strongly placed in this market.
Apart from smartphones, growth will be propelled by high
resolution tablets, USB modems, home networks and
yet-to-be-introduced Internet connective devices. The rising RF
dollar content and increasing complexity associated with the
proliferation of smartphones is fueling growth in the total
available market (TAM), providing a unique expansion opportunity
Management expects smartphone adoption to increase in the
developing countries, such as China and India.
Earlier, Skyworks posted a net income of $49.3 million or 26
cents per diluted share in the third quarter of fiscal 2012, down
from net income of $51.5 million or 27 cents per diluted share in
Excluding acquisition-related charges but including stock-based
compensation expense, Skyworks reported net income of 35 cents per
share, in line with the Zacks Consensus Estimate.
However, earnings estimates have been more or less static after
the company reported third quarter results. Hence, we maintain a
Neutral recommendation on Skyworks. Our recommendation is supported
by a Zacks #3 Rank, which translates into a short-term rating of
SKYWORKS SOLUTN (SWKS): Free Stock Analysis
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