Last week, Skyworks Solutions Inc. released its third fiscal quarter results for the period ended June 26, 2020. Revenue for the third fiscal quarter was $736.8 million, exceeding consensus estimates.
According to Liam K. Griffin, President and CEO of Skyworks, the company delivered results well above expectations in the June quarter, as its Sky5 platform gains traction, powering innovation in 5G applications at the leading mobile phone OEMs worldwide, and increasingly across IoT customers. At the cusp of a multi-year upgrade cycle, Skyworks is capitalizing on early market momentum and accelerating widespread 5G adoption. Its efforts are underpinned by years of investment in next-generation technologies, uniquely positioning Skyworks to deliver long-term profitable growth.
Third Fiscal Quarter Business Highlights:
- Expanded Sky5 platform across major handsets OEMs, including wins at Samsung, Oppo, Vivo, Xiaomi, Motorola and other Tier-1 players
- Enabled Wi-Fi 6 tri-band home gateways at AT&T
- Ramped indoor and outdoor access points at Aruba, Juniper and Linksys
- Powered highly integrated connectivity in Amazon/Ring security systems
- Launched mesh router and voice assistant solutions at Google
- Leveraged 4x4 MIMO and Wi-Fi engines in premium sound bars at Sonos
- Delivered new cognitive wireless audio solutions, powering the leading gaming headsets
- Supported industrial IoT platforms at Gemalto
- Captured new design wins leveraging Sky5 at BMW, Ford and other automotive leaders
- Secured design wins at Tier-1 aerospace and defense OEMs with highly integrated GPS, circulator and advanced filter solutions
Third Fiscal Quarter 2020
GAAP basis, operating income for the third fiscal quarter of 2020 was $147.5 million with diluted earnings per share of $0.77. On a non-GAAP basis, operating income was $230.3 million with non-GAAP diluted earnings per share of $1.25.
Fourth Fiscal Quarter 2020 Outlook
Skyworks provides 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.
Looking ahead to the fourth fiscal quarter, Skyworks expects double-digit sequential revenue and earnings per share growth driven by the strong demand for its market-leading solutions. Specifically, in the fourth fiscal quarter of 2020, the company anticipates its revenue to be between $830 million and $850 million with non-GAAP diluted earnings per share of $1.51 at the midpoint of revenue range. Further, given their confidence in Skyworks’ strategic outlook and strong cash flow generation, the company is announcing another substantial raise to its quarterly dividend.
The above guidance is based on Skyworks’ current expectations of customer demand and continued ability to manufacture and ship products, each of which could be impacted by the COVID-19 pandemic, among other factors.
Dividend Increase and Payment
Skyworks’ Board of Directors has declared a cash dividend of $0.50 per share of the company’s common stock, representing a 14 percent increase from the prior quarterly dividend of $0.44 per share. The dividend is payable on Sept. 1, 2020, to stockholders of record at the close of business on Aug. 11, 2020.
