Playback of the conference call will begin at 9:00 p.m. Eastern time on July 23, and end at 9:00 p.m. Eastern time on July 30. The replay will be available on Skyworks' website or by calling 800-475-6701 (domestic) or 320-365-3844 (international), access code: 364209.
About Skyworks
Skyworks Solutions, Inc. is empowering the wireless networking revolution, connecting virtually everyone and everything, all the time. Our highly innovative analog semiconductors are linking people, places, and things spanning a number of new and previously unimagined applications within automotive, broadband, cellular infrastructure, the connected home, industrial, medical, military, smartphone, tablet and wearable markets.
Headquartered in Woburn, Massachusetts, Skyworks is a global company with engineering, marketing, operations, sales, and service facilities located throughout Asia, Europe and North America. 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) and plans for dividend payments. 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: uncertainty regarding global economic and financial market conditions; the susceptibility of the semiconductor industry and the markets addressed by our, and our customers', products to economic downturns; the timing, rescheduling or cancellation of significant customer orders and our ability, as well as the ability of our customers, to manage inventory; losses or curtailments of purchases or payments from key customers, or the timing of customer inventory adjustments; the availability and pricing of third-party semiconductor foundry, assembly and test capacity, raw materials and supplier components; changes in laws, regulations and/or policies that could adversely affect either (i) the economy and our customers’ demand for our products or (ii) the financial markets and our ability to raise capital; our ability to develop, manufacture and market innovative products in a highly price competitive and rapidly changing technological environment; economic, social, military and geo-political conditions in the countries in which we, our customers or our suppliers operate, including security and health risks, possible disruptions in transportation networks and fluctuations in foreign currency exchange rates; fluctuations in our manufacturing yields due to our complex and specialized manufacturing processes; delays or disruptions in production due to equipment maintenance, repairs and/or upgrades; our reliance on several key customers for a large percentage of our sales; fluctuations in the manufacturing yields of our third-party semiconductor foundries and other problems or delays in the fabrication, assembly, testing or delivery of our products; our ability to timely and accurately predict market requirements and evolving industry standards, and to identify opportunities in new markets; 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 rapidly develop new products and avoid product obsolescence; 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; lengthy product development cycles that impact the timing of new product introductions; unfavorable changes in product mix; the quality of our products and any remediation costs; shorter-than-expected product life cycles; problems or delays that we may face in shifting our products to smaller geometry process technologies and in achieving higher levels of design integration; and our ability to continue to grow and maintain an intellectual property portfolio and obtain needed licenses from third parties, as well as other risks and uncertainties, including, but not limited to, those detailed from time to time in our filings with the Securities and Exchange Commission.
The forward-looking statements contained in this news release are made only as of the date hereof, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Note to Editors: Skyworks and Skyworks Solutions are trademarks or registered trademarks of Skyworks Solutions, Inc. or its subsidiaries in the United States and in other countries. All other brands and names listed are trademarks of their respective companies.
| SKYWORKS SOLUTIONS, INC. | |||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| July 3, | June 27, | July 3, | June 27, | ||||||||||||
| (in millions, except per share amounts) | 2015 | 2014 | 2015 | 2014 | |||||||||||
| Net revenue | $ | 810.0 | $ | 587.0 | $ | 2,377.6 | $ | 1,573.2 | |||||||
| Cost of goods sold | 416.9 | 322.8 | 1,259.3 | 874.6 | |||||||||||
| Gross profit | 393.1 | 264.2 | 1,118.3 | 698.6 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 76.8 | 64.2 | 220.8 | 184.2 | |||||||||||
| Selling, general and administrative | 48.6 | 45.8 | 143.9 | 128.8 | |||||||||||
| Amortization of intangibles | 8.4 | 5.7 | 25.2 | 18.5 | |||||||||||
| Restructuring and other charges | 0.5 | - | 2.9 | - | |||||||||||
| Total operating expenses | 134.3 | 115.7 | 392.8 | 331.5 | |||||||||||
| Operating income | 258.8 | 148.5 | 725.5 | 367.1 | |||||||||||
| Other income (expense), net | 0.6 | - | 1.9 | (0.1 | ) | ||||||||||
| Income before income taxes | 259.4 | 148.5 | 727.4 | 367.0 | |||||||||||
| Provision for income taxes | 52.0 | 37.1 | 158.3 | 84.2 | |||||||||||
| Net income | $ | 207.4 | $ | 111.4 | $ | 569.1 | $ | 282.8 | |||||||
| Earnings per share: | |||||||||||||||
| Basic | $ | 1.09 | $ | 0.59 | $ | 3.00 | $ | 1.51 | |||||||
| Diluted | $ | 1.06 | $ | 0.58 | $ | 2.92 | $ | 1.47 | |||||||
| Weighted average shares: | |||||||||||||||
| Basic | 190.0 | 187.5 | 189.5 | 187.0 | |||||||||||
| Diluted | 195.4 | 193.2 | 194.9 | 192.2 | |||||||||||
| SKYWORKS SOLUTIONS, INC. | ||||||||||||||||||
| UNAUDITED RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| July 3, | June 27, | July 3, | June 27, | |||||||||||||||
| (in millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| GAAP gross profit | $ | 393.1 | $ | 264.2 | $ | 1,118.3 | $ | 698.6 | ||||||||||
| Share-based compensation expense [a] | 3.6 | 2.4 | 10.6 | 7.9 | ||||||||||||||
| Acquisition-related expenses [b] | - | - | 0.2 | - | ||||||||||||||
| Non-GAAP gross profit | $ | 396.7 | $ | 266.6 | $ | 1,129.1 | $ | 706.5 | ||||||||||
| Non-GAAP gross margin % | 49.0 | % | 45.4 | % | 47.5 | % | 44.9 | % | ||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| July 3, | June 27, | July 3, | June 27, | |||||||||||||||
| (in millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| GAAP operating income | $ | 258.8 | $ | 148.5 | $ | 725.5 | $ | 367.1 | ||||||||||
| Share-based compensation expense [a] | 25.9 | 22.8 | 74.4 | 62.4 | ||||||||||||||
| Acquisition-related expenses [b] | 0.8 | 0.9 | 6.1 | 1.0 | ||||||||||||||
| Amortization of intangibles | 8.4 | 5.7 | 25.2 | 18.5 | ||||||||||||||
| Restructuring and other charges [c] | 0.5 | - | 2.9 | - | ||||||||||||||
| Litigation settlement gains, losses and expenses [d] | 1.0 | 1.2 | 2.1 | 2.3 | ||||||||||||||
| Non-GAAP operating income | $ | 295.4 | $ | 179.1 | $ | 836.2 | $ | 451.3 | ||||||||||
| Non-GAAP operating margin % | 36.5 | % | 30.5 | % | 35.2 | % | 28.7 | % | ||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| July 3, | June 27, | July 3, | June 27, | |||||||||||||||
| (in millions) | 2015 | 2014 | 2015 | 2014 | ||||||||||||||
| GAAP net income | $ | 207.4 | $ | 111.4 | $ | 569.1 | $ | 282.8 | ||||||||||
| Share-based compensation expense [a] | 25.9 | 22.8 | 74.4 | 62.4 | ||||||||||||||
| Acquisition-related expenses [b] | 0.8 | 0.9 | 6.1 | 1.0 | ||||||||||||||
| Amortization of intangibles | 8.4 | 5.7 | 25.2 | 18.5 | ||||||||||||||
| Restructuring and other charges [c] | 0.5 | - | 2.9 | - | ||||||||||||||
| Litigation settlement gains, losses and expenses [d] | 1.0 | 1.2 | 2.1 | 2.3 | ||||||||||||||
| Interest expense on seller-financed debt [e] | 0.4 | - | 1.0 | - | ||||||||||||||
| Tax adjustments [f] | 18.1 | 18.8 | 51.0 | 40.1 | ||||||||||||||
| Non-GAAP net income | $ | 262.5 | $ | 160.8 | $ | 731.8 | $ | 407.1 | ||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| July 3, | June 27, | July 3, | June 27, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||||
| GAAP net income per share, diluted | $ | 1.06 | $ | 0.58 | $ | 2.92 | $ | 1.47 | ||||||||||
| Share-based compensation expense [a] | 0.13 | 0.12 | 0.38 | 0.32 | ||||||||||||||
| Acquisition-related expenses [b] | - | - | 0.03 | 0.01 | ||||||||||||||
| Amortization of intangibles | 0.04 | 0.03 | 0.13 | 0.10 | ||||||||||||||
| Restructuring and other charges [c] | - | - | 0.01 | - | ||||||||||||||
| Litigation settlement gains, losses and expenses [d] | 0.01 | - | 0.01 | 0.01 | ||||||||||||||
| Interest on seller-financed debt [e] | - | - | 0.01 | - | ||||||||||||||
| Tax adjustments [f] | 0.10 | 0.10 | 0.26 | 0.21 | ||||||||||||||
| Non-GAAP net income per share, diluted | $ | 1.34 | $ | 0.83 | $ | 3.75 | $ | 2.12 | ||||||||||
SKYWORKS SOLUTIONS, INC.
