Skyworks Reports Strong Q1 FY20 Results

Skyworks has released its first fiscal quarter results for the period ended December 27, 2019. Revenue for the first fiscal quarter of 2020 was $896.1 million, up 8 percent sequentially, exceeding the high end of the revenue guidance range, as well as consensus estimates.

The exceeded December quarter expectations were primarily driven by global demand for the company’s high performance connectivity engines. Leveraging decades of experience, manufacturing scale and vertical integration capabilities, Skyworks’ highly advanced Sky5 platform is fueling market adoption of 5G across a broadening customer set.

With an expansive suite of applications − from smartphones to wireless infrastructure, industrial robotics, autonomous vehicles, smart homes and virtual assistants − these solutions provide the critical connection, ensuring peak performance for 5G and IoT usage cases. At the same time, through crisp operational execution and a strong business model, Skyworks is translating these results into long-term shareholder value. Click here to see Skyworks Stock performance.

First Fiscal Quarter Business Highlights
  • Ramped Sky5 portfolio across Oppo, Vivo and Xiaomi 5G mobile platforms
  • Powered rapidly emerging 5G massive IoT applications with cellular-based solutions certified by KDDI, NTT Docomo, SoftBank and Verizon
  • Advanced automotive content with SkyOne, Wi-Fi 6 and V2X portfolio
  • Extended market leadership position in high-speed 802.11ax access points with advanced 2.4 and 5 GHz FEMs
  • Introduced Bluetooth Low Energy modules for Proctor & Gamble’s infant monitoring system
  • Leveraged Zigbee, Thread and Bluetooth Low Energy architectures for extended-range smart gas meter applications
  • Commenced volume production of Wi-Fi 6 connectivity engines for ZTE and Belkin/Linksys
  • Supported GoPro’s next-generation wearable, waterproof action camera with GPS technology
  • Shipped LoRa devices powering premium home security platforms
  • Expanded infrastructure footprint with 5G massive-MIMO and small cell base station design wins

On a GAAP basis, operating income for the first fiscal quarter of 2020 was $277.3 million with diluted earnings per share of $1.50. On a non-GAAP basis, operating income was $315.4 million with non-GAAP diluted earnings per share of $1.68, or $0.03 better than guidance and consensus estimates.

Second Fiscal Quarter 2020 Outlook

According to Kris Sennesael, Senior VP and CFO, Skyworks, the company expects new content opportunities and the ramp of Sky5 solutions to drive better-than-seasonal results in the March quarter. Specifically, in the second fiscal quarter of 2020, Skyworks’ anticipate revenue to be between $800 and $820 million with non-GAAP diluted earnings per share of $1.46 at the midpoint of our revenue range.

Dividend Payment

Skyworks’ Board of Directors has declared a cash dividend of $0.44 per share of the Company’s common stock, payable on March 3, 2020, to stockholders of record at the close of business on February 11, 2020.