Skyworks Reports Q3 2019 Financial Results

Skyworks Solutions, Inc. has reported its third fiscal quarter results for the period ended June 28, 2019. Revenue for the third fiscal quarter was $767.0 million.

The core fundamentals of their business remain strong despite current market volatility. Demand for advanced connectivity and the expansive nature of 5G are creating real-time opportunities for architectures that facilitate high-speed data, near-zero latency and exceptional reliability. As a proven technology leader, they are leveraging their Sky5® platform and systems expertise to enable billions of connections across a vast set of diverse end markets, providing the foundation for an entirely new ecosystem in today’s connected world.

Third Fiscal Quarter Business Highlights

  • Commenced volume production of BAW-enabled Sky5® devices
  • Powered Samsung’s Galaxy S10 premium 5G smartphone
  • Bolstered Sky5® portfolio with MIPI® ultra-high linearity antenna tuners
  • Leveraged SkyOne® and SkyLiTE™ across Oppo, Vivo and Xiaomi flagship phones
  • Unveiled high-efficiency amplifiers enabling 5G massive MIMO TDD base stations for a tier-one Korean customer
  • Shipped 5G circulators, LNAs and controllers to leading European infrastructure manufacturers
  • Ramped 802.11ax engines for Cisco’s enterprise platforms
  • Secured wins across DIRECTV’s high-definition 4K streaming set top boxes
  • Expanded automotive footprint with CAT 6 LTE modules for embedded in-vehicle displays
  • Enabled Facebook’s Oculus virtual reality gaming headsets with highly integrated SkyOne® connectivity solutions
  • Captured content in award-winning wireless earphones designed for Xbox
  • Launched analog SoCs and cognitive wireless devices for Vizio sound bars and wireless subwoofers
  • Introduced proprietary low-k materials for thermal barrier coatings in aerospace applications

On a GAAP basis, operating income for the third fiscal quarter of 2019 was $159.6 million with diluted earnings per share of $0.83. On a non-GAAP basis, operating income was $252.2 million with non-GAAP diluted earnings per share of $1.35. Skyworks increased their quarterly dividend by 16% to $0.44 Per Share.

Fourth Fiscal Quarter 2019 Outlook

According to the company CFO, Skyworks is on track to deliver sequential revenue and earnings growth in the September quarter as they execute on strategic product ramps. Specifically, in the fourth fiscal quarter of 2019, they anticipate revenue to be between $815 and $835 million with non-GAAP diluted earnings per share of $1.50 at the midpoint of our revenue range. Further, given their confidence in their strategic outlook and strong cash flow generation, they announced a substantial raise to the quarterly dividend to $0.44 Per Share (An Increase of 16%).