Skyworks Beats by a Penny - Analyst Blog
20 Janeiro 2012 - 8:30AM
Zacks
Skyworks Solutions,
Inc. (SWKS) posted a net income of $57.1 million or
30 cents per share in the first quarter of fiscal 2012 compared to
a net income of $60.8 million or 32 cents per share in the year-ago
quarter and a net income of $64.2 million or 34 cents per diluted
share in the fourth quarter of fiscal 2011.
Excluding acquisition-related
charges but including stock-based compensation expense, Skyworks
reported a net income of 43 cents per share, beating the Zacks
Consensus Estimate by a penny.
Skyworks reported revenues of
$393.7 million in the first quarter, up 17% year over year and
surpassed management’s guidance of $390.0 million.
Skyworks continues to weather the
turbulent economic conditions well. The company has strategically
positioned itself as a diversified company. Skyworks continues to
benefit from strong underlying demand in the mobile Internet market
driven by market share gains and new product ramps. Skyworks saw a
healthy holiday season demand across all categories of mobile
Internet devices, including smartphones, e-readers and tablets.
Margins
Gross margin came in at 44.3%, down from 44.7% both in the year-ago
quarter and previous quarter. Operating margin came in at 26.7%
versus 27.7% in the year-ago quarter and 27.2% in the previous
quarter.
Skyworks generated $77.2 million in
cash flow from operations and invested $6.4 million in capital
expenditures. During the quarter, Skyworks repurchased 750,000
shares of its common stock and retired $9 million of debt. After
December, Skyworks retired the remaining $17 million of its
outstanding debt. The company does not have any debt on its balance
sheet as of now.
Skyworks recently completed the
acquisition of Advanced Analogic Technologies Incorporated for
roughly $200 million in net cash. The company ended the quarter
with cash and equivalents of $446.5 million, up from $410.8 million
at the end of the previous quarter.
Guidance
Ericsson recently projected a
tenfold increase in wireless network data traffic over the next 5
years as the mobile Internet supplants the wired Internet. The
ubiquitous use of smartphones is expected to drive growth further
as analysts’ forecast that cumulative smartphone unit shipments
will range around 4 billion between 2011 and 2015.
Another strong area of growth is
tablets, which continues to replace PCs. Approximately 100 million
tablets are expected to be shipped in 2012. Skyworks added that the
adoption rate of tablets and similar devices like ultrabooks should
accelerate as applications like cloud computing and digital
textbooks become mainstream.
The advent of cloud computing is
expected to take the trend further with the ever-growing need for
wireless connectivity. The number of wireless radios shipped
into non-mobile segments like gaming, PCs, televisions, set-top
boxes is expected to grow at a compounded growth rate of 27%
through 2015.
Meanwhile, high performance analog
products also continue to see increase traction across a wide range
of end markets. Management expects to see further growth in this
segment with the acquisition of Advanced Analogic Technologies,
which provides Skyworks with an entry into an incremental $2
billion in total available market with power management ICs, with
display and backlighting solutions.
Going forward, management expects
revenues of approximately $360 million in the second quarter of
fiscal 2012. This includes roughly a $14 million contribution from
the acquisition of Advanced Analogic Technologies. Gross margin is
projected at around 43.0% – 43.5%. Management expects gross margins
to improve in the third quarter as sequential revenue growth
resumes and the company realizes synergies associated with the AATI
acquisition. Skyworks expects EPS of 40 cents in the third
quarter.
The better-than-expected results
and guidance drove a 6.34% increase in share price in after-market
hours trading to close at $20.45.
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