Playback of the conference call will begin at 9:00 p.m. Eastern time on November 8 and end at 9:00 p.m. Eastern time on November 15. The replay will be available on Skyworks' website or by calling (800) 475-6701 (domestic) or (320) 365-3844 (international), access code: 455397.
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, 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, plans for dividend payments, the use of its stock repurchase program, and cash return rate to shareholders). 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 susceptibility of the semiconductor industry and the markets addressed by our, and our customers', products to economic downturns; our reliance on several key customers for a large percentage of our sales; 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; economic, social, military and geo-political conditions in the countries in which we, our customers or our suppliers operate, including security and health risks, imposition of trade protection measures (e.g., tariffs or taxes), increased import/export restrictions and controls, and possible disruptions in transportation networks and fluctuations in foreign currency exchange rates; 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; the availability and pricing of third-party semiconductor foundry, assembly and test capacity, raw materials and supplier components; 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.
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 the Skyworks symbol are trademarks or registered trademarks of Skyworks Solutions, Inc. or its subsidiaries in the United States and other countries. Third-party brands and names are for identification purposes only, and are the property of their respective owners.
| SKYWORKS SOLUTIONS, INC. | |||||||||||||||||
| UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| Three Months Ended | Twelve Months Ended | ||||||||||||||||
| (in millions, except per share amounts) |
September 28,
2018 |
September 29,
2017 |
September 28,
2018 |
September 29,
2017 |
|||||||||||||
| Net revenue | $ | 1,008.4 | $ | 984.6 | $ | 3,868.0 | $ | 3,651.4 | |||||||||
| Cost of goods sold | 504.8 | 485.7 | 1,917.3 | 1,809.6 | |||||||||||||
| Gross profit | 503.6 | 498.9 | 1,950.7 | 1,841.8 | |||||||||||||
| Operating expenses: | |||||||||||||||||
| Research and development | 103.0 | 91.8 | 404.5 | 355.2 | |||||||||||||
| Selling, general and administrative | 54.4 | 56.4 | 207.8 | 204.6 | |||||||||||||
| Amortization of acquisition-related intangibles | 6.3 | 5.0 | 18.3 | 27.6 | |||||||||||||
| Restructuring and other charges | (0.2 | ) | (0.2 | ) | 0.8 | 0.6 | |||||||||||
| Total operating expenses | 163.5 | 153.0 | 631.4 | 588.0 | |||||||||||||
| Operating income | 340.1 | 345.9 | 1,319.3 | 1,253.8 | |||||||||||||
| Other income, net | 3.3 | 1.8 | 12.8 | 3.2 | |||||||||||||
| Income before income taxes | 343.4 | 347.7 | 1,332.1 | 1,257.0 | |||||||||||||
| Provision for income taxes | 57.9 | 66.4 | 413.7 | 246.8 | |||||||||||||
| Net income | $ | 285.5 | $ | 281.3 | $ | 918.4 | $ | 1,010.2 | |||||||||
| Earnings per share: | |||||||||||||||||
| Basic | $ | 1.60 | $ | 1.53 | $ | 5.06 | $ | 5.48 | |||||||||
| Diluted | $ | 1.58 | $ | 1.51 | $ | 5.01 | $ | 5.41 | |||||||||
| Weighted average shares: | |||||||||||||||||
| Basic | 178.6 | 183.4 | 181.3 | 184.3 | |||||||||||||
| Diluted | 180.2 | 185.7 | 183.2 | 186.7 | |||||||||||||
| SKYWORKS SOLUTIONS, INC. | ||||||||||||||||||
| UNAUDITED RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES | ||||||||||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| (in millions) |
September 28,
2018 |
September 29,
2017 |
September 28,
2018 |
September 29,
2017 |
||||||||||||||
| GAAP gross profit | $ | 503.6 | $ | 498.9 | $ | 1,950.7 | $ | 1,841.8 | ||||||||||
| Share-based compensation expense [a] | 2.8 | 3.5 | 14.4 | 13.6 | ||||||||||||||
| Acquisition-related expenses (benefit) [b] | 4.5 | — | 4.5 | — | ||||||||||||||
| Amortization of acquisition-related intangibles [c] | 2.3 | — | 2.3 | — | ||||||||||||||
| Impairment and restructuring-related charges (reversals) [d] | 2.8 | — | 2.8 | — | ||||||||||||||
| Non-GAAP gross profit | $ | 516.0 | $ | 502.4 | $ | 1,974.7 | $ | 1,855.4 | ||||||||||
| GAAP gross margin % | 49.9 | % | 50.7 | % | 50.4 | % | 50.4 | % | ||||||||||
| Non-GAAP gross margin % | 51.2 | % | 51.0 | % | 51.1 | % | 50.8 | % | ||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| (in millions) |
September 28,
2018 |
September 29,
2017 |
September 28,
2018 |
September 29,
2017 |
||||||||||||||
| GAAP operating income | $ | 340.1 | $ | 345.9 | $ | 1,319.3 | $ | 1,253.8 | ||||||||||
| Share-based compensation expense [a] | 21.5 | 24.2 | 107.8 | 88.5 | ||||||||||||||
| Acquisition-related expenses (benefit) [b] | 4.3 | 0.3 | (2.6 | ) | 4.6 | |||||||||||||
| Amortization of acquisition-related intangibles [c] | 8.7 | 5.0 | 20.7 | 27.6 | ||||||||||||||
| Impairment and restructuring-related charges (reversals) [d] | 5.0 | (0.2 | ) | 6.0 | 0.6 | |||||||||||||
| Litigation settlement gains, losses and expenses [e] | — | 4.0 | — | 4.0 | ||||||||||||||
| Deferred executive compensation expense (benefit) [f] | — | — | (1.7 | ) | — | |||||||||||||
| Non-GAAP operating income | $ | 379.6 | $ | 379.2 | $ | 1,449.5 | $ | 1,379.1 | ||||||||||
| GAAP operating margin % | 33.7 | % | 35.1 | % | 34.1 | % | 34.3 | % | ||||||||||
| Non-GAAP operating margin % | 37.6 | % | 38.5 | % | 37.5 | % | 37.8 | % | ||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
| (in millions) |
September 28,
2018 |
September 29,
2017 |
September 28,
2018 |
September 29,
2017 |
||||||||||||||
| GAAP net income | $ | 285.5 | $ | 281.3 | $ | 918.4 | $ | 1,010.2 | ||||||||||
| Share-based compensation expense [a] | 21.5 | 24.2 | 107.8 | 88.5 | ||||||||||||||
| Acquisition-related expenses (benefit) [b] | 4.3 | 0.3 | (2.6 | ) | 4.6 | |||||||||||||
| Amortization of acquisition-related intangibles [c] | 8.7 | 5.0 | 20.7 | 27.6 | ||||||||||||||
| Impairment and restructuring-related charges (reversals) [d] | 5.0 | (0.2 | ) | 6.0 | 0.6 | |||||||||||||
| Litigation settlement gains, losses and expenses [e] | — | 4.0 | — | 4.0 | ||||||||||||||
| Deferred executive compensation expense (benefit) [f] | — | — | (1.7 | ) | — | |||||||||||||
| Tax adjustments [g] | 24.7 | 24.2 | 274.8 | 69.6 | ||||||||||||||
| Non-GAAP net income | $ | 349.7 | $ | 338.8 | $ | 1,323.4 | $ | 1,205.1 | ||||||||||
| Three Months Ended | Twelve Months Ended | |||||||||||||||||
|
September 28,
2018 |
September 29,
2017 |
September 28,
2018 |
September 29,
2017 |
|||||||||||||||
| GAAP net income per share, diluted | $ | 1.58 | $ | 1.51 | $ | 5.01 | $ | 5.41 | ||||||||||
| Share-based compensation expense [a] | 0.12 | 0.13 | 0.59 | 0.48 | ||||||||||||||
| Acquisition-related expenses (benefit) [b] | 0.02 | — | (0.01 | ) | 0.02 | |||||||||||||
| Amortization of acquisition-related intangibles [c] | 0.05 | 0.03 | 0.11 | 0.15 | ||||||||||||||
| Impairment and restructuring-related charges (reversals) [d] | 0.03 | — | 0.03 | — | ||||||||||||||
| Litigation settlement gains, losses and expenses [e] | — | 0.02 | — | 0.02 | ||||||||||||||
| Deferred executive compensation expense (benefit) [f] | — | — | (0.01 | ) | — | |||||||||||||
| Tax adjustments [g] | 0.14 | 0.13 | 1.50 | 0.37 | ||||||||||||||
| Non-GAAP net income per share, diluted | $ | 1.94 | $ | 1.82 | $ | 7.22 | $ | 6.45 | ||||||||||
SKYWORKS SOLUTIONS, INC.
