Skyworks Solutions Inc.
) reported stellar second quarter fiscal 2013 results with
revenues of $425.2 million, up 16.6% year over year. Revenues
also surpassed management's guidance of $420.0 million. Skyworks'
strategic diversification across OEMs (original equipment
manufacturers) and chipset partners facilitated the consistent
results despite the macroeconomic uncertainty.
The company reported a net income of $61.7 million or 32 cents
per share in the second quarter of fiscal 2013, compared to $34.0
million or 18 cents per share in the year-earlier quarter.
Excluding non-recurring items, adjusted earnings for the reported
quarter were $91.9 million or 48 cents per share compared to
$79.8 million or 42 cents in the year-ago quarter. The adjusted
earnings exceeded the Zacks Consensus Estimate by 9 cents.
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 such as
automotive, networking, medical and connected home. Skyworks
continues to gain market share in adjacent vertical markets
including automotive, medical, avionics, military, location
services and broadband communications.
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 driving demand for
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
Skyworks is actively participating in developing activities,
which support major 2013 phone models that incorporate entirely
new LTE bands to support deployments in Europe and Asia, which
shall result in incremental addressable content.
The company generated $130.2 million in cash flow from operations
and ended the quarter with cash and equivalents of $458.8
million. The company repurchased 1.4 million shares in the
Going forward, management expects healthy top- and bottom-line
growth in third quarter fiscal 2013 with a more diversified
margin-accretive product mix. Revenues for the third quarter are
expected to be approximately $435 million, driven by new platform
wins and design momentum. Skyworks also expects adjusted earnings
per share of 53 cents in the third quarter of fiscal 2013.
The company believes that its strategy of diversifying its
business, expanding into new verticals and continued focus on
operational execution will drive growth even in a weak economic
Skyworks present retains a Zacks Rank #4 (Sell). Other players in
the industry include
), each carrying a Zacks Rank #2 (Buy).
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SKYWORKS SOLUTN (SWKS): Free Stock Analysis
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