Skyworks Provides Q2 Business Update in Light of the Covid-19 Outbreak

Skyworks Solutions, an innovator of high-performance semiconductors, has provided a business update in light of the global COVID-19 outbreak. Revenue for the second fiscal quarter of 2020 ended March 27, 2020, was $766.1 million, slightly exceeding the midpoint of the updated range provided in the company’s revised outlook announced on March 4, 2020. The company expects non-GAAP diluted earnings per share to be in line with the guidance it provided on March 4, 2020, for performance at the midpoint of the revenue range.

Skyworks continues to monitor its supply chain in light of the COVID-19 outbreak. While it has seen limited impact to date, on April 13, 2020, state and local government officials from the state of Baja California, Mexico, informed Skyworks of their decision to temporarily suspend Skyworks’ operations in Mexicali, Mexico (the “Mexicali Operations”), under the Mexican Ministry of Health’s Executive Order dated March 31, 2020, which suspended all non-essential public and private sector business through April 30, 2020, to mitigate the spread of the COVID-19 outbreak. In compliance with this decision, Skyworks has temporarily suspended its Mexicali Operations and has directed its workforce in Mexico to follow the government’s “remain at home” directive.

Skyworks does not expect that the temporary suspension of its Mexicali Operations through April 30, 2020, would have a significant impact on the company’s business operations. However, an extended suspension of the Mexicali Operations beyond April 30 would likely impact Skyworks’ ability to meet customer demand and would likely impact its operating results. Skyworks is working with state and local officials in Mexicali to resume operations as soon as practicable. An update will be provided when Skyworks reports its second-quarter fiscal 2020 results.

Skyworks remains committed to promoting and preserving the health and well being of its employees in all locations. In response to the global COVID-19 outbreak, Skyworks has implemented multiple protocols in its facilities worldwide, including social distancing, pre-shift temperature screening, enhanced use of personal protective equipment, heightened sanitation standards and remote-work options wherever possible. In addition to these practices, Skyworks has also implemented rotating shifts with reduced staffing at its various manufacturing sites.

This update, including the financial results expected for the second fiscal quarter of 2020, is preliminary, based on information available to management as of the date of this release, including with respect to those impacts of the COVID-19 outbreak that are currently known to management, and is subject to further changes upon completion of standard quarter-end closing procedures and based on the duration and severity of the COVID-19 outbreak. Skyworks’ independent registered public accounting firm has not completed its review of Skyworks’ results for the second fiscal quarter ended March 27, 2020. Skyworks undertakes no obligation to update the information in this release in the event facts or circumstances change after the date of this release.

Skyworks’ Second Fiscal Quarter 2020 Conference Call

Skyworks will conduct a conference call with analysts to discuss its second-quarter fiscal 2020 results and business outlook on May 4, 2020, at 4:30 p.m. ET.