• Delivers Record Third Quarter Revenue of $1.116 Billion, up 52% Y-o-Y
• Posts GAAP Diluted EPS of $2.02, up 162% Y-o-Y; Non-GAAP Diluted EPS of $2.15, up 72% Y-o-Y
• Guides to Strong Y-o-Y Revenue and Earnings Growth in Q4 FY21
• Increases Quarterly Dividend by 12% to $0.56 Per Share

IRVINE, Calif. — (BUSINESS WIRE) — July 29, 2021 — Skyworks Solutions, Inc. (Nasdaq: SWKS), an innovator of high-performance analog semiconductors connecting people, places and things, today reported third fiscal quarter results for the period ended July 2, 2021.

Revenue for the third fiscal quarter of 2021 was $1.116 billion, up 52% year over year and exceeding consensus estimates. On a GAAP basis, operating income for the third fiscal quarter was $339.8 million with diluted earnings per share of $2.02. On a non-GAAP basis, operating income was $403.4 million with non-GAAP diluted earnings per share of $2.15.

“Skyworks delivered record third quarter results, with strong year-over-year growth in both revenue and earnings per share,” said Liam K. Griffin, chairman, CEO and president of Skyworks. “Looking ahead, we expect continued momentum as we execute on strong design wins with our mobile and broad markets customers.

“An expanding array of usage cases – from mobile to automotive, cloud computing and intelligent energy management – is accelerating the adoption of 5G across numerous end markets. Our decades-long experience and deep customer relationships, combined with the strength and scale of our internal fabrication capabilities, position Skyworks to enable a broad set of applications and opportunities. Further, the recent addition of the Infrastructure and Automotive business of Silicon Labs immediately adds unique technologies as we expand our addressable markets and lead across a wide range of diversified and differentiated solutions.”

Third Fiscal Quarter Business Highlights

• Expanded the reach of our Sky5^® portfolio, powering upcoming smartphone launches at Tier-1 OEMs including Google, Oppo, Vivo and Xiaomi, among others
• Delivered Wi-Fi front-end modules to Facebook for their next-generation Portal devices
• Partnered with Linksys to debut the market’s first Wi-Fi 6E mesh network system
• Ramped Wi-Fi 6 and 6E platforms at Altice, Charter Communications and Aruba Networks
• Launched connected home and security solutions at Honeywell
• Shipped cognitive audio platforms to Samsung and Vizio for their home theater systems
• Captured design wins at Peloton supporting home fitness applications
• Leveraged our wireless infrastructure and small cell portfolio for European and Asian OEMs
• Enabled advanced telematics systems for the world’s leading automakers

Fourth Fiscal Quarter 2021 Outlook

We provide earnings guidance on a non-GAAP basis because certain information necessary to reconcile such guidance to GAAP is difficult to estimate and dependent on future events outside of our control. Please refer to the attached Discussion Regarding the Use of Non-GAAP Financial Measures in this press release for a further discussion of our use of non-GAAP measures, including quantification of known expected adjustment items.

“Based on continued robust demand for connectivity solutions in mobile and broad markets and the inclusion of a partial quarter of revenue from the recently completed acquisition of the Infrastructure and Automotive business from Silicon Labs, we expect further strong year-over-year growth in the September quarter,” said Kris Sennesael, senior vice president and chief financial officer of Skyworks.

“Specifically, in the fourth fiscal quarter of 2021, we anticipate revenue to be between $1.270 billion and $1.330 billion with non-GAAP diluted earnings per share of $2.53 at the midpoint of our revenue range, representing revenue growth of 36% and non-GAAP diluted earnings per share growth of 37%, compared to the fourth fiscal quarter of 2020. In addition, given our conviction in Skyworks’ strategic outlook and predictable strong cash generation, we are announcing another substantial increase to our quarterly dividend.”

Dividend Increase and Payment

Skyworks’ board of directors has declared a cash dividend of $0.56 per share of the Company’s common stock, representing a 12% increase from the prior quarterly dividend of $0.50 per share. The dividend is payable on Sept. 7, 2021, to stockholders of record at the close of business on Aug. 17, 2021.

Skyworks’ Third Quarter 2021 Conference Call

Skyworks will host a conference call with analysts to discuss its third quarter fiscal 2021 results and business outlook today at 4:30 p.m. EDT. To listen to the conference call via the Internet, please visit the investor relations section of Skyworks’ website. To listen to the conference call via telephone, please call (844) 583-4549 (domestic) or (825) 312-2257 (international), Conference ID: 9437167.

Playback of the conference call will begin at 9 p.m. EDT on July 29, 2021, and end at 9 p.m. EDT on Aug. 5, 2021. The replay will be available on Skyworks’ website or by calling (800) 585-8367 (domestic) or (416) 621-4642 (international), Conference ID: 9437167.

About Skyworks

Skyworks Solutions, Inc. is empowering the wireless networking revolution. Our highly innovative analog semiconductors are connecting people, places and things spanning a number of new and previously unimagined applications within the aerospace, automotive, broadband, cellular infrastructure, connected home, entertainment and gaming, industrial, medical, military, smartphone, tablet and wearable markets.

Skyworks is a global company with engineering, marketing, operations, sales and support facilities located throughout Asia, Europe and North America and is a member of the S&P 500^® and Nasdaq-100^® market indices (Nasdaq: SWKS). For more information, please visit Skyworks’ website at: www.skyworksinc.com.

Safe Harbor Statement

This news release includes “forward-looking statements” intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, information relating to future results and expectations of Skyworks (e.g., certain projections and business trends, as well as plans for dividend payments, debt repayment and share repurchases). Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “forecasts,” “intends,” “believes,” “plans,” “may,” “will” or “continue,” and similar expressions and variations or negatives of these words. All such statements are subject to certain risks, uncertainties and other important factors that could cause actual results to differ materially and adversely from those projected and may affect our future operating results, financial position and cash flows.

These risks, uncertainties and other important factors include, but are not limited to: the effects on our business operations of the global COVID-19 pandemic, including the spread of more contagious variants of the virus that causes COVID-19, as well as of the measures taken to limit COVID-19’s spread, including reduced shift staffing in certain of our manufacturing facilities, as well as potential other disruptions to our business, including but not limited to the suspension or restriction of operations at our facilities and third-party supply chain disruptions, that could result from social distancing measures, employee quarantines, restricting certain employees from working or additional actions that may be taken by us, our suppliers and partners or governmental authorities in the jurisdictions in which we operate in an effort to contain the COVID-19 pandemic; the susceptibility of the semiconductor industry and the markets addressed by our, and our customers’, products to economic downturns, including as a result of the COVID-19 pandemic; our reliance on a small number of key customers for a large percentage of our sales; delays in the deployment of commercial 5G networks or in consumer adoption of 5G-enabled devices; risks related to the transaction with Silicon Laboratories Inc. (“Silicon Labs”), including the ability to successfully integrate the assets acquired and employees transferred, and the risk that we may not realize the anticipated benefits from the transaction; the risks of doing business internationally, including increased import/export restrictions and controls (e.g., our ability to sell products to Huawei Technologies Co., Ltd. and certain of its affiliates, as well as other specified entities, only pursuant to a limited export license from the U.S. Department of Commerce), imposition of trade protection measures (e.g., tariffs or taxes), security and health risks, possible disruptions in transportation networks, fluctuations in foreign currency exchange rates, and other economic, social, military and geo-political conditions in the countries in which we, our customers or our suppliers operate; the volatility of our stock price; declining selling prices, decreased gross margins, and loss of market share as a result of increased competition; our ability to obtain design wins from customers; changes in laws, regulations and/or policies that could adversely affect our operations and financial results, the economy and our customers’ demand for our products, or the financial markets and our ability to raise capital; fluctuations in our manufacturing yields due to our complex and specialized manufacturing processes; our ability to develop, manufacture and market innovative products, avoid product obsolescence, reduce costs in a timely manner, transition our products to smaller geometry process technologies, and achieve higher levels of design integration; the quality of our products and any defect remediation costs; our products’ ability to perform under stringent operating conditions; the availability and pricing of third-party semiconductor foundry, assembly and test capacity, raw materials and supplier components; reduced flexibility in operating our business as a result of the indebtedness incurred in connection with the transaction with Silicon Labs; our ability to retain, recruit and hire key executives, technical personnel and other employees in the positions and numbers, with the experience and capabilities, and at the compensation levels needed to implement our business and product plans; the timing, rescheduling or cancellation of significant customer orders and our ability, as well as the ability of our customers, to manage inventory; our ability to prevent theft of our intellectual property, disclosure of confidential information, or breaches of our information technology systems; uncertainties of litigation, including potential disputes over intellectual property infringement and rights, as well as payments related to the licensing and/or sale of such rights; our ability to continue to grow and maintain an intellectual property portfolio and obtain needed licenses from third parties; our ability to make certain investments and acquisitions, integrate companies we acquire, and/or enter into strategic alliances; and other risks and uncertainties, including, but not limited to, those detailed from time to time in our filings with the Securities and Exchange Commission.