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Skyworks Reports Q2 FY24 Results

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Skyworks Solutions, Inc. (SWKS) reported revenue of $1.046 billion for Q2 FY24, with GAAP diluted EPS of $1.14 and non-GAAP diluted EPS of $1.55. The company generated quarterly operating cash flow of $300 million and quarterly free cash flow of $273 million. Despite challenges in the macroeconomic environment, Skyworks posted solid results, including delivering integrated platforms for leading 5G smartphone OEMs and securing numerous design wins across various sectors. The company's third fiscal quarter 2024 outlook anticipates revenue of $900 million, with a non-GAAP diluted EPS of $1.21. Skyworks also declared a cash dividend of $0.68 per share, payable on June 11, 2024.

Skyworks Solutions, Inc. (SWKS) ha riportato ricavi per 1,046 miliardi di dollari per il secondo trimestre dell'anno fiscale 2024, con un EPS diluito GAAP di 1,14 dollari e un EPS diluito non-GAAP di 1,55 dollari. La società ha generato un flusso di cassa operativo trimestrale di 300 milioni di dollari e un flusso di cassa libero trimestrale di 273 milioni di dollari. Nonostante le sfide del contesto macroeconomico, Skyworks ha ottenuto risultati solidi, inclusa la fornitura di piattaforme integrate per i principali OEM di smartphone 5G e l'acquisizione di numerosi nuovi contratti in vari settori. Le previsioni per il terzo trimestre dell'anno fiscale 2024 della società prevedono ricavi per 900 milioni di dollari, con un EPS diluito non-GAAP di 1,21 dollari. Skyworks ha inoltre dichiarato un dividendo in contanti di 0,68 dollari per azione, pagabile l'11 giugno 2024.
Skyworks Solutions, Inc. (SWKS) informó ingresos de $1.046 mil millones para el segundo trimestre del año fiscal 2024, con un EPS diluido GAAP de $1.14 y un EPS diluido no-GAAP de $1.55. La empresa generó un flujo de caja operativo trimestral de $300 millones y un flujo de caja libre trimestral de $273 millones. A pesar de los desafíos en el entorno macroeconómico, Skyworks registró resultados sólidos, incluyendo la entrega de plataformas integradas para los principales OEM de smartphones 5G y la obtención de numerosas victorias de diseño en varios sectores. La perspectiva para el tercer trimestre del año fiscal 2024 de la compañía anticipa ingresos de $900 millones, con un EPS diluido no-GAAP de $1.21. Skyworks también declaró un dividendo en efectivo de $0.68 por acción, pagadero el 11 de junio de 2024.
Skyworks Solutions, Inc. (SWKS)은 2024 회계년도 2분기에 10억 4600만 달러의 매출을 보고했으며, GAAP 희석 주당이익은 1.14달러, 비GAAP 희석 주당이익은 1.55달러였습니다. 회사는 분기별 운영 현금 흐름 3억 달러 및 분기별 자유 현금 흐름 2억 7300만 달러를 생성했습니다. 거시경제 환경의 도전에도 불구하고 Skyworks는 주요 5G 스마트폰 OEM을 위한 통합 플랫폼을 제공하고 다양한 부문에서 다수의 디자인 승리를 확보하는 등 탄탄한 결과를 보였습니다. 회사는 2024 회계년도 3분기에 9억 달러의 매출과 비GAAP 희석 주당이익 1.21달러를 예상하고 있습니다. 또한 Skyworks는 주당 0.68달러의 현금 배당을 선언했으며, 2024년 6월 11일에 지급될 예정입니다.
Skyworks Solutions, Inc. (SWKS) a déclaré un chiffre d'affaires de 1,046 milliard de dollars pour le deuxième trimestre de l'exercice 2024, avec un BPA dilué GAAP de 1,14 $ et un BPA dilué non-GAAP de 1,55 $. L'entreprise a généré un flux de trésorerie opérationnel trimestriel de 300 millions de dollars et un flux de trésorerie libre trimestriel de 273 millions de dollars. Malgré les défis de l'environnement macroéconomique, Skyworks a présenté des résultats solides, y compris la livraison de plateformes intégrées pour les principaux fabricants de smartphones 5G et l'obtention de nombreux gains de conception dans divers secteurs. Les prévisions de l'entreprise pour le troisième trimestre de l'exercice 2024 anticipent un chiffre d'affaires de 900 millions de dollars, avec un BPA dilué non-GAAP de 1,21 $. Skyworks a également annoncé un dividende en espèces de 0,68 $ par action, payable le 11 juin 2024.
Skyworks Solutions, Inc. (SWKS) meldete für das zweite Quartal des Geschäftsjahres 2024 einen Umsatz von 1,046 Milliarden US-Dollar, mit einem GAAP verwässerten EPS von 1,14 US-Dollar und einem nicht-GAAP verwässerten EPS von 1,55 US-Dollar. Das Unternehmen erzielte einen operativen Cashflow von 300 Millionen US-Dollar und einen freien Cashflow von 273 Millionen US-Dollar im Quartal. Trotz Herausforderungen im makroökonomischen Umfeld erzielte Skyworks solide Ergebnisse, einschließlich der Lieferung integrierter Plattformen für führende 5G-Smartphone-Hersteller und zahlreicher Designgewinne in verschiedenen Sektoren. Für das dritte Quartal des Geschäftsjahres 2024 erwartet das Unternehmen einen Umsatz von 900 Millionen US-Dollar mit einem nicht-GAAP verwässerten EPS von 1,21 US-Dollar. Skyworks hat zudem eine Bardividende von 0,68 US-Dollar pro Aktie angekündigt, zahlbar am 11. Juni 2024.
Positive
  • Solid revenue of $1.046 billion for Q2 FY24.

  • Strong cash generation with quarterly operating cash flow of $300 million and free cash flow of $273 million.

  • Delivered integrated platforms to leading 5G smartphone OEMs and secured design wins in automotive and audio sectors.

  • Provided positive outlook for the third fiscal quarter 2024, anticipating revenue of $900 million and non-GAAP diluted EPS of $1.21.

  • Declared a cash dividend of $0.68 per share of common stock, payable on June 11, 2024.

Negative
  • Mobile business expected to be down sequentially for the June quarter due to excess inventory clearing.

  • Challenging macroeconomic environment leading to lower-than-expected end market demand.

Skyworks Solutions' reported revenue of $1.046 billion aligns with industry expectations for semiconductor companies in today's market. The GAAP operating income of $189.2 million and diluted EPS of $1.14, coupled with the non-GAAP figures of $279.1 million and $1.55 respectively, indicate a robust operational performance. Furthermore, the generation of $300 million in operating cash flow and $273 million in free cash flow highlights a strong balance sheet and liquidity position, which are essential for investors considering the long-term stability and capital allocation strategies of the company. However, the forecasted decline in the mobile business for the upcoming quarter, with expected revenue of $900 million, represents a cautious outlook potentially influenced by market saturation or inventory adjustments. This may suggest a short-term headwind for the stock but could also underline the company's prudence in guiding expectations in light of inventory normalization.

Skyworks Solutions' expansion in the automotive and IoT sectors diversifies its portfolio beyond mobile dependency, which is a strategic move to capture growth in emerging tech segments. Initiating new programs in automotive and securing audio SoC design wins with key players like PlayStation® and Samsung enhances the company's competitive edge. However, the reliance on a few major OEM customers in these segments creates a risk concentration that investors should be aware of. This diversification into 5G, automotive, IoT and AI infrastructure mirrors industry trends where semiconductor demand is increasing, yet also adds a layer of complexity and investment that will take time to mature into financial results. The potential long-term benefits include tapping into high-growth markets, but there are upfront R&D and capital expenditure costs to consider.
  • Delivers Revenue of $1.046 Billion
  • Posts GAAP Diluted EPS of $1.14 and Non-GAAP Diluted EPS of $1.55
  • Generates Quarterly Operating Cash Flow of $300 Million and Quarterly Free Cash Flow of $273 Million

IRVINE, Calif.--(BUSINESS WIRE)-- Skyworks Solutions, Inc. (Nasdaq: SWKS), an innovator of high-performance analog and mixed-signal semiconductors connecting people, places and things, today reported second fiscal quarter results for the period ended March 29, 2024.

Revenue for the second fiscal quarter of 2024 was $1.046 billion. On a GAAP basis, operating income for the second fiscal quarter was $189.2 million with diluted earnings per share of $1.14. On a non-GAAP basis, operating income was $279.1 million with non-GAAP diluted earnings per share of $1.55.

“Skyworks delivered solid results and strong cash generation in a challenging macroeconomic environment,” said Liam K. Griffin, chairman, chief executive officer and president of Skyworks. “During the March quarter, in our mobile business, we saw below normal seasonal trends, with lower-than-expected end market demand. Over the long-term, we intend to leverage our connectivity technology across edge-connected IoT devices, automotive electrification and advanced safety systems, and AI infrastructure.”

Second Fiscal Quarter Business Highlights

  • Delivered integrated platforms to the leading 5G smartphone OEMs, including flagship and mid-tier launches at Samsung, Google and Oppo
  • Expanded our design win pipeline and initiated new programs in automotive, including infotainment systems, traction inverters, cloud-enhanced driver-assist and CV2X on-board units
  • Secured several audio SoC design wins for wireless gaming and soundbars with PlayStation® and Samsung

Third Fiscal Quarter 2024 Outlook

We provide earnings guidance 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 our control. Please refer to the attached Discussion Regarding the Use of Non-GAAP Financial Measures in this earnings release for a further discussion of our use of non-GAAP measures, including quantification of known expected adjustment items.

“For the June quarter, we expect revenue to be $900 million, plus or minus 2%,” said Kris Sennesael, senior vice president and chief financial officer of Skyworks. “At the mid-point of the revenue range, we anticipate non-GAAP diluted earnings per share of $1.21. We expect our mobile business to be down sequentially, below normal seasonal patterns, as excess inventory clears. In broad markets, we anticipate further modest growth as inventory levels appear to be normalizing in certain end markets.”

Dividend Payment

Skyworks’ board of directors has declared a cash dividend of $0.68 per share of the Company’s common stock, payable on June 11, 2024, to stockholders of record at the close of business on May 21, 2024.

Skyworks’ Second Quarter 2024 Conference Call

Skyworks will host a conference call with analysts to discuss its second quarter fiscal 2024 results and business outlook on April 30, 2024, at 4:30 p.m. EDT.

To listen to the conference call, please visit the investor relations section of Skyworks’ website at https://investors.skyworksinc.com/events-presentations. Playback of the conference call will be available on Skyworks’ website at www.skyworksinc.com/investors beginning at 9 p.m. EDT on April 30, 2024. Additionally, a transcript of the Company’s prepared remarks will be made available on our website promptly after their conclusion during the call.

About Skyworks

Skyworks Solutions, Inc. is empowering the wireless networking revolution. Our highly innovative analog and mixed-signal 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, defense, entertainment and gaming, industrial, medical, 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® market index (Nasdaq: SWKS). For more information, please visit Skyworks’ website at: www.skyworksinc.com.

Safe Harbor Statement

This earnings 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 information relating to future events, prospects, expectations and results of Skyworks (e.g., certain projections and business trends, as well as plans for dividend payments). 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: the susceptibility of the semiconductor industry and the markets addressed by our, and our customers’, products to economic cycles, including a rise in inflation and the current heightened risk of recession; our reliance on a small number of key customers for a large percentage of our sales; the availability and pricing of third-party semiconductor foundry, assembly and test capacity, raw materials, including rare earth and similar minerals, supplier components, equipment and shipping and logistics services, including limits on our customers’ ability to obtain such services and materials; the risks of doing business internationally, including increased import/export restrictions and controls (e.g., our ability to sell products to certain specified foreign entities only pursuant to a limited export license from the U.S. Department of Commerce or our ability to obtain foreign-sourced raw materials), imposition of trade protection measures (e.g., tariffs or taxes), security and health risks, possible disruptions in transportation networks, fluctuations in foreign currency exchange rates, and other economic, social, military and geopolitical conditions in the countries in which we, our customers or our suppliers operate, including the conflicts in Ukraine and the Middle East; delays in the deployment of commercial 5G networks or in consumer adoption of 5G-enabled devices; the volatility of our stock price; decreased gross margins and loss of market share as a result of increased competition; our ability to obtain design wins from customers; 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; our products’ ability to perform under stringent operating conditions; reduced flexibility in operating our business as a result of the indebtedness incurred in connection with the transaction with Silicon Laboratories Inc.; 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; the effects of global health crises on business conditions in our industry, including in the risk of significant disruptions to our business operations, as well as negative impacts to our financial condition; 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 those detailed from time to time in our filings with the Securities and Exchange Commission.

The forward-looking statements contained in this earnings 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

Six Months Ended

(in millions, except per share amounts)

March 29, 2024

March 31, 2023

March 29, 2024

March 31, 2023

Net revenue

$

1,046.0

 

$

1,153.1

 

$

2,247.5

 

$

2,482.4

 

Cost of goods sold

 

625.7

 

 

625.7

 

 

1,320.7

 

 

1,317.4

 

Gross profit

 

420.3

 

 

527.4

 

 

926.8

 

 

1,165.0

 

Operating expenses:

 

 

 

 

Research and development

 

154.4

 

 

148.2

 

 

307.3

 

 

312.0

 

Selling, general, and administrative

 

76.8

 

 

79.0

 

 

155.5

 

 

163.5

 

Amortization of intangibles

 

0.2

 

 

3.8

 

 

0.5

 

 

25.7

 

Restructuring, impairment, and other charges (benefits)

 

(0.3

)

 

23.1

 

 

15.9

 

 

23.5

 

Total operating expenses

 

231.1

 

 

254.1

 

 

479.2

 

 

524.7

 

Operating income

 

189.2

 

 

273.3

 

 

447.6

 

 

640.3

 

Interest expense

 

(7.1

)

 

(18.9

)

 

(17.1

)

 

(35.8

)

Other income, net

 

10.8

 

 

5.4

 

 

14.1

 

 

6.0

 

Income before income taxes

 

192.9

 

 

259.8

 

 

444.6

 

 

610.5

 

Provision for income taxes

 

9.6

 

 

27.0

 

 

30.0

 

 

68.3

 

Net income

$

183.3

 

$

232.8

 

$

414.6

 

$

542.2

 

Earnings per share:

 

 

 

 

Basic

$

1.14

 

$

1.46

 

$

2.59

 

$

3.40

 

Diluted

$

1.14

 

$

1.46

 

$

2.57

 

$

3.39

 

Weighted average shares:

 

 

 

 

Basic

 

160.4

 

 

159.1

 

 

160.1

 

 

159.5

 

Diluted

 

161.4

 

 

159.9

 

 

161.3

 

 

160.1

 

SKYWORKS SOLUTIONS, INC.

UNAUDITED RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES

 

 

Three Months Ended

Six Months Ended

(in millions)

March 29, 2024

March 31, 2023

March 29, 2024

March 31, 2023

GAAP gross profit

$

420.3

 

$

527.4

 

$

926.8

 

$

1,165.0

 

Share-based compensation expense [a]

 

11.5

 

 

7.5

 

 

20.3

 

 

10.2

 

Amortization of acquisition-related intangibles

 

39.1

 

 

41.7

 

 

80.8

 

 

85.7

 

Non-GAAP gross profit

$

470.9

 

$

576.6

 

$

1,027.9

 

$

1,260.9

 

GAAP gross margin %

 

40.2

%

 

45.7

%

 

41.2

%

 

46.9

%

Non-GAAP gross margin %

 

45.0

%

 

50.0

%

 

45.7

%

 

50.8

%

 

 

Three Months Ended

Six Months Ended

(in millions)

March 29, 2024

March 31, 2023

March 29, 2024

March 31, 2023

GAAP operating income

$

189.2

 

$

273.3

 

$

447.6

 

$

640.3

 

Share-based compensation expense [a]

 

46.0

 

 

40.9

 

 

99.3

 

 

90.4

 

Acquisition-related expenses

 

1.1

 

 

0.9

 

 

1.1

 

 

9.1

 

Amortization of acquisition-related intangibles

 

39.3

 

 

45.5

 

 

81.3

 

 

111.3

 

Settlements, gains, losses, and impairments

 

2.3

 

 

19.0

 

 

14.3

 

 

19.1

 

Restructuring and other charges

 

1.2

 

 

6.5

 

 

1.2

 

 

7.2

 

Non-GAAP operating income

$

279.1

 

$

386.1

 

$

644.8

 

$

877.4

 

GAAP operating margin %

 

18.1

%

 

23.7

%

 

19.9

%

 

25.8

%

Non-GAAP operating margin %

 

26.7

%

 

33.5

%

 

28.7

%

 

35.3

%

 

 

Three Months Ended

Six Months Ended

(in millions)

March 29, 2024

March 31, 2023

March 29, 2024

March 31, 2023

GAAP net income

$

183.3

 

$

232.8

 

$

414.6

 

$

542.2

 

Share-based compensation expense [a]

 

46.0

 

 

40.9

 

 

99.3

 

 

90.4

 

Acquisition-related expenses

 

1.1

 

 

0.9

 

 

1.1

 

 

9.1

 

Amortization of acquisition-related intangibles

 

39.3

 

 

45.5

 

 

81.3

 

 

111.3

 

Settlements, gains, losses, and impairments

 

2.3

 

 

19.4

 

 

14.3

 

 

19.9

 

Restructuring and other charges

 

1.2

 

 

6.5

 

 

1.2

 

 

7.2

 

Tax adjustments

 

(22.5

)

 

(22.9

)

 

(44.2

)

 

(42.5

)

Non-GAAP net income

$

250.7

 

$

323.1

 

$

567.6

 

$

737.6

 

 

 

Three Months Ended

Six Months Ended

 

March 29, 2024

March 31, 2023

March 29, 2024

March 31, 2023

GAAP net income per share, diluted

$

1.14

 

$

1.46

 

$

2.57

 

$

3.39

 

Share-based compensation expense [a]

 

0.29

 

 

0.25

 

 

0.62

 

 

0.56

 

Acquisition-related expenses

 

 

 

0.01

 

 

0.01

 

 

0.06

 

Amortization of acquisition-related intangibles

 

0.24

 

 

0.28

 

 

0.50

 

 

0.70

 

Settlements, gains, losses, and impairments

 

0.01

 

 

0.12

 

 

0.09

 

 

0.12

 

Restructuring and other charges

 

0.01

 

 

0.04

 

 

 

 

0.04

 

Tax adjustments

 

(0.14

)

 

(0.14

)

 

(0.27

)

 

(0.26

)

Non-GAAP net income per share, diluted

$

1.55

 

$

2.02

 

$

3.52

 

$

4.61

 

 

 

Three Months Ended

Six Months Ended

(in millions)

March 29, 2024

March 31, 2023

March 29, 2024

March 31, 2023

GAAP net cash provided by operating activities

$

300.2

 

$

411.7

 

$

1,075.1

 

$

1,185.1

 

Capital expenditures

 

(27.6

)

 

(45.3

)

 

(49.8

)

 

(108.9

)

Non-GAAP free cash flow

$

272.6

 

$

366.4

 

$

1,025.3

 

$

1,076.2

 

GAAP net cash provided by operating activities margin %

 

28.7

%

 

35.7

%

 

47.8

%

 

47.7

%

Non-GAAP free cash flow margin %

 

26.1

%

 

31.8

%

 

45.6

%

 

43.4

%

SKYWORKS SOLUTIONS, INC.

DISCUSSION REGARDING THE USE OF NON-GAAP FINANCIAL MEASURES

Our earnings release contains some or all of the following financial measures that have not been calculated in accordance with United States Generally Accepted Accounting Principles (“GAAP”): (i) non-GAAP gross profit and gross margin, (ii) non-GAAP operating income and operating margin, (iii) non-GAAP net income, (iv) non-GAAP diluted earnings per share, and (v) non-GAAP free cash flow and free cash flow margin. As set forth in the “Unaudited Reconciliations of Non-GAAP Financial Measures” table found above, we derive such non-GAAP financial measures by excluding certain expenses and other items from the respective GAAP financial measure that is most directly comparable to each non-GAAP financial measure. Management uses these non-GAAP financial measures to evaluate our operating performance and compare it against past periods, make operating decisions, forecast for future periods, compare our operating performance against peer companies, and determine payments under certain compensation programs. These non-GAAP financial measures provide management with additional means to understand and evaluate the operating results and trends in our ongoing business by eliminating certain non-recurring expenses and other items that management believes might otherwise make comparisons of our ongoing business with prior periods and competitors more difficult, obscure trends in ongoing operations, or reduce management’s ability to make forecasts.

We provide investors with non-GAAP gross profit and gross margin, non-GAAP operating income and operating margin, non-GAAP net income, non-GAAP diluted earnings per share, and non-GAAP free cash flow and free cash flow margin because we believe it is important for investors to be able to closely monitor and understand changes in our ability to generate income from ongoing business operations. We believe these non-GAAP financial measures give investors an additional method to evaluate historical operating performance and identify trends, an additional means of evaluating period-over-period operating performance and a method to facilitate certain comparisons of our operating results to those of our peer companies. We believe that providing non-GAAP operating income and operating margin allows investors to assess the extent to which our ongoing operations impact our overall financial performance. We also believe that providing non-GAAP net income and non-GAAP diluted earnings per share allows investors to assess the overall financial performance of our ongoing operations by eliminating the impact of share-based compensation expense, acquisition-related expenses, amortization of acquisition-related intangibles, settlements, gains, losses, and impairments, restructuring-related charges, and certain tax items which may not occur in each period presented and which may represent non-cash items unrelated to our ongoing operations. We further believe that providing non-GAAP free cash flow and free cash flow margin provide insight into our liquidity, our cash-generating capability, and the amount of cash potentially available to return to shareholders. We believe that disclosing these non-GAAP financial measures contributes to enhanced financial reporting transparency and provides investors with added clarity about complex financial performance measures.

We calculate non-GAAP gross profit by excluding from GAAP gross profit, share-based compensation expense and amortization of acquisition-related intangibles. We calculate non-GAAP operating income by excluding from GAAP operating income, share-based compensation expense, acquisition-related expenses, amortization of acquisition-related intangibles, settlements, gains, losses, and impairments, and restructuring-related charges. We calculate non-GAAP net income and diluted earnings per share by excluding from GAAP net income and diluted earnings per share, share-based compensation expense, acquisition-related expenses, amortization of acquisition-related intangibles, settlements, gains, losses, and impairments, restructuring-related charges, and certain tax items. We calculate non-GAAP free cash flow by deducting capital expenditures from GAAP net cash provided by operating activities. We exclude certain items identified above from the respective non-GAAP financial measure referenced above for the reasons set forth with respect to each such excluded item below:

Share-Based Compensation Expense - because (1) the total amount of expense is partially outside of our control because it is based on factors such as stock price volatility and interest rates, which may be unrelated to our performance during the period in which the expense is incurred, (2) it is an expense based upon a valuation methodology premised on assumptions that vary over time, and (3) the amount of the expense can vary significantly between companies due to factors that can be outside of the control of such companies.

Acquisition-Related Expenses and Amortization of Acquisition-Related Intangibles - including such items as, when applicable, fair value adjustments to contingent consideration, fair value charges incurred upon the sale of acquired inventory, acquisition-related expenses, and amortization of acquired intangible assets because they are not considered by management in making operating decisions and we believe that such expenses do not have a direct correlation to our future business operations and thereby including such charges does not necessarily reflect the performance of our ongoing operations for the period in which such charges or reversals are incurred.

Settlements, Gains, Losses, and Impairments - because such settlements, gains, losses, and impairments (1) are not considered by management in making operating decisions, (2) are infrequent in nature, (3) are generally not directly controlled by management, (4) do not necessarily reflect the performance of our ongoing operations for the period in which such charges are recognized, and/or (5) can vary significantly in amount between companies and make comparisons less reliable.

Restructuring and Other Charges - because these charges have no direct correlation to our future business operations and including such charges or reversals does not necessarily reflect the performance of our ongoing operations for the period in which such charges or reversals are incurred.

Certain Income Tax Items - including certain deferred tax charges and benefits that do not result in a current tax payment or tax refund and other adjustments, including but not limited to, items unrelated to the current fiscal year or that are not indicative of our ongoing business operations.

The non-GAAP financial measures presented in the table above should not be considered in isolation and are not an alternative for the respective GAAP financial measure that is most directly comparable to each such non-GAAP financial measure. Investors are cautioned against placing undue reliance on these non-GAAP financial measures and are urged to review and consider carefully the adjustments made by management to the most directly comparable GAAP financial measures to arrive at these non-GAAP financial measures. Non-GAAP financial measures may have limited value as analytical tools because they may exclude certain expenses that some investors consider important in evaluating our operating performance or ongoing business performance. Further, non-GAAP financial measures may have limited value for purposes of drawing comparisons between companies as a result of different companies potentially calculating similarly titled non-GAAP financial measures in different ways because non-GAAP measures are not based on any comprehensive set of accounting rules or principles.

Our earnings release contains forward-looking estimates of non-GAAP diluted earnings per share for the third quarter of our 2024 fiscal year (“Q3 2024”). We provide this non-GAAP measure to investors on a prospective basis for the same reasons (set forth above) that we provide it to investors on a historical basis. We are unable to provide a reconciliation of our forward-looking estimate of Q3 2024 GAAP diluted earnings per share to a forward-looking estimate of Q3 2024 non-GAAP diluted earnings per share because certain information needed to make a reasonable forward-looking estimate of GAAP diluted earnings per share for Q3 2024 (other than estimated share-based compensation expense of $0.25 to $0.35 per diluted share, estimated amortization of intangibles of $0.20 to $0.30 per diluted share and certain tax items of -$0.15 to $0.00 per diluted share) is difficult to predict and estimate and is often dependent on future events that may be uncertain or outside of our control. Such events may include unanticipated changes in our GAAP effective tax rate, unanticipated one-time charges related to asset impairments (fixed assets, inventory, intangibles, or goodwill), unanticipated acquisition-related expenses, unanticipated settlements, gains, losses, and impairments, and other unanticipated non-recurring items not reflective of ongoing operations. The probable significance of these unknown items, in the aggregate, is estimated to be in the range of $0.00 to $0.15 in quarterly earnings per diluted share on a GAAP basis. Our forward-looking estimates of both GAAP and non-GAAP measures of our financial performance may differ materially from our actual results and should not be relied upon as statements of fact.

[a] The following table summarizes the expense recognized in accordance with ASC 718 - Compensation, Stock Compensation (in millions):

 

Three Months Ended

Six Months Ended

 

March 29, 2024

March 31, 2023

March 29, 2024

March 31, 2023

Cost of goods sold

$

11.5

$

7.5

$

20.3

$

10.2

Research and development

 

19.9

 

17.4

 

45.2

 

45.3

Selling, general, and administrative

 

14.6

 

16.0

 

33.8

 

34.9

Total share-based compensation

$

46.0

$

40.9

$

99.3

$

90.4

SKYWORKS SOLUTIONS, INC.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

As of

(in millions)

March 29, 2024

September 29, 2023

Assets

 

 

Cash, cash equivalents, and marketable securities

$

1,221.3

$

738.5

Accounts receivable, net

 

615.3

 

864.3

Inventory

 

835.5

 

1,119.7

Property, plant, and equipment, net

 

1,301.4

 

1,390.1

Goodwill and intangible assets, net

 

3,296.2

 

3,398.8

Other assets

 

1,040.0

 

915.3

Total assets

$

8,309.7

$

8,426.7

 

 

 

Liabilities and Equity

 

 

Accounts payable

$

149.8

$

159.2

Accrued and other liabilities

 

807.1

 

892.5

Debt

 

993.6

 

1,292.3

Stockholders’ equity

 

6,359.2

 

6,082.7

Total liabilities and equity

$

8,309.7

$

8,426.7

SKYWORKS SOLUTIONS, INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

Three Months Ended

Six Months Ended

(in millions)

March 29, 2024

March 31, 2023

March 29, 2024

March 31, 2023

Cash flow from operating activities

 

 

 

 

Net income

$

183.3

 

$

232.8

 

$

414.6

 

$

542.2

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Share-based compensation

 

46.0

 

 

40.9

 

 

99.3

 

 

90.4

 

Depreciation

 

65.3

 

 

99.1

 

 

130.0

 

 

198.4

 

Amortization of intangible assets

 

45.5

 

 

51.4

 

 

93.6

 

 

123.4

 

Deferred income taxes

 

(0.6

)

 

(27.1

)

 

(3.1

)

 

(57.0

)

Asset impairment charges

 

 

 

17.0

 

 

16.1

 

 

17.0

 

Amortization of debt discount and issuance costs

 

(0.2

)

 

1.3

 

 

1.6

 

 

2.0

 

Other, net

 

2.2

 

 

2.1

 

 

(2.1

)

 

2.2

 

Changes in assets and liabilities:

 

 

 

 

Receivables, net

 

44.1

 

 

79.1

 

 

249.0

 

 

409.0

 

Inventory

 

85.6

 

 

6.4

 

 

277.7

 

 

(49.4

)

Accounts payable

 

15.2

 

 

(6.9

)

 

(3.4

)

 

(94.7

)

Other current and long-term assets and liabilities

 

(186.2

)

 

(84.4

)

 

(198.1

)

 

1.6

 

Net cash provided by operating activities

 

300.2

 

 

411.7

 

 

1,075.2

 

 

1,185.1

 

Cash flow from investing activities

 

 

 

 

Capital expenditures

 

(27.6

)

 

(45.3

)

 

(49.8

)

 

(108.9

)

Purchased intangibles

 

(7.6

)

 

(7.3

)

 

(15.2

)

 

(15.1

)

Purchases of marketable securities

 

(10.1

)

 

(107.3

)

 

(11.3

)

 

(270.4

)

Sales and maturities of marketable securities

 

12.2

 

 

53.8

 

 

15.4

 

 

65.1

 

Other

 

0.2

 

 

0.1

 

 

4.4

 

 

0.1

 

Net cash used in investing activities

 

(32.9

)

 

(106.0

)

 

(56.5

)

 

(329.2

)

Cash flow from financing activities

 

 

 

 

Repurchase of common stock — payroll tax withholdings on equity awards

 

(0.7

)

 

(0.7

)

 

(33.4

)

 

(32.6

)

Repurchase of common stock — stock repurchase program

 

 

 

(9.1

)

 

 

 

(175.3

)

Dividends paid

 

(109.1

)

 

(98.7

)

 

(218.0

)

 

(198.0

)

Net proceeds from exercise of stock options

 

 

 

 

 

1.1

 

 

1.1

 

Proceeds from employee stock purchase plan

 

18.2

 

 

15.5

 

 

18.2

 

 

15.5

 

Payments of debt

 

 

 

(200.0

)

 

(300.0

)

 

(200.0

)

Net cash used in financing activities

 

(91.6

)

 

(293.0

)

 

(532.1

)

 

(589.3

)

Net increase in cash and cash equivalents

 

175.7

 

 

12.7

 

 

486.6

 

 

266.6

 

Cash and cash equivalents at beginning of period

 

1,029.7

 

 

819.9

 

 

718.8

 

 

566.0

 

Cash and cash equivalents at end of period

$

1,205.4

 

$

832.6

 

$

1,205.4

 

$

832.6

 

 

Media Relations:

Constance Griffiths

(949) 231-4207

constance.griffiths@skyworksinc.com

Investor Relations:

Raji Gill

(949) 508-0973

raji.gill@skyworksinc.com

Source: Skyworks Solutions, Inc.

FAQ

What was Skyworks Solutions, Inc.'s revenue for Q2 FY24?

Skyworks reported revenue of $1.046 billion for the second fiscal quarter of 2024.

What is the non-GAAP diluted EPS for Q2 FY24?

Skyworks' non-GAAP diluted EPS for Q2 FY24 was $1.55.

When will Skyworks pay its cash dividend for Q2 FY24?

Skyworks will pay a cash dividend of $0.68 per share on June 11, 2024.

What is the revenue outlook for Skyworks in the third fiscal quarter of 2024?

Skyworks anticipates revenue of $900 million for the third fiscal quarter of 2024.

What business sectors did Skyworks secure design wins in for Q2 FY24?

Skyworks secured design wins in automotive and audio sectors for the second fiscal quarter of 2024.

Skyworks Solutions, Inc.

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About SWKS

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 automotive, broadband, cellular infrastructure, connected home, industrial, medical, military, smartphone, tablet and wearable markets. headquartered in woburn, massachusetts, skyworks is a global company with engineering, marketing, operations, sales, and service facilities located throughout asia, europe and north america.