Skyworks Solutions has reported its third fiscal quarter results for the period ending July 1, 2016. Revenue for the third fiscal quarter was $751.7 million, exceeding the Company’s guidance and First Call consensus estimates. On a GAAP basis, operating income for the third fiscal quarter of 2016 was $238.6 million with diluted earnings per share of $0.97. On a non-GAAP basis, operating income for the third fiscal quarter of 2016 was $274.7 million with non-GAAP diluted earnings per share of $1.24, $0.03 better than guidance and First Call consensus estimates.
Skyworks exceeded expectations in the third fiscal quarter of 2016 driven by increasing global demand for high-speed connectivity coupled with strong operational execution. Their highly integrated solutions are enabling a broad array of applications ranging from streaming media to e-commerce to cloud-based services. Specifically, they are capturing performance-driven content gains within the world’s premium mobile platforms while expanding our customer and end-market reach across the Internet of Things. Accordingly, they are planning for sustained market outperformance with operating leverage.
Third Fiscal Quarter Business Highlights
- Supported Huawei’s P9 platform incorporating 10 unique devices including SkyOne systems across low, mid and high bands
- Launched advanced carrier aggregation capabilities at multiple smartphone OEMs
- Ramped SkyBlue™ technology enabling enhanced power management and LED flash drivers
- Commenced volume production of proprietary diversity receive solutions
- Expanded antenna tuning portfolio enabling higher data rates and smaller footprints
- Secured telematics design wins at Continental for 4G LTE automotive systems
- Released Bluetooth® Low Energy long range modules for industrial applications
- Enabled connectivity within leading always-listening virtual assistant platforms
- Supported world’s first head cam with LTE connectivity and 4K streaming video
- Powered enterprise radios for the Google 3.5 GHz band ecosystem
- Captured digital attenuator and multimode repeater design wins at Audi
- Exceeded two billion cumulative shipments of filters from Panasonic joint venture
- Repurchased 3 million shares of common stock
Fourth Fiscal Quarter 2016 Outlook
They provide earnings guidance solely 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 their control.
Based on the broad market traction and new program ramps as well as analog and mixed signal content gains, they expect a strong second half of 2016 with further operational improvements. In particular, for the fourth fiscal quarter of 2016, they anticipate revenue to be up 10 to 11 percent sequentially to $831 million at the midpoint with gross and operating margin expansion driving non-GAAP diluted earnings per share of $1.43. Further, to enhance cash returns to shareholders, they are announced that their Board of Directors has authorized a dividend increase and a new stock repurchase program.
