 |
Skyworks Exceeds Q3 FY12 Revenue and EPS Estimates
|
|
July 18, 2012 Press Release
- Generates Revenue of $389 Million, Up 7 Percent Sequentially and 9 Percent
Year-over-Year
- Posts Non-GAAP Diluted EPS of $0.45 ($0.26 GAAP)
- Guides for Accelerating Revenue Growth in Q4 FY12
- Targets $0.50 to $0.51 of Diluted Non-GAAP EPS in Q4 FY12, Up More than 10
Percent Sequentially
WOBURN, Mass.--(BUSINESS WIRE)--Jul. 18,
2012--
Skyworks Solutions, Inc. (NASDAQ: SWKS), an innovator of high performance analog semiconductors enabling
a broad range of end markets, today reported third fiscal quarter 2012 results. Revenue for the quarter ending
June 29, 2012, was $389.0 million, up 7 percent sequentially and 9 percent when compared to revenue of $356.1
million in the third fiscal quarter of 2011 and exceeding the Company’s previous guidance for the quarter of
$383.0 million.
On a non-GAAP basis, operating income for the third fiscal quarter was $91.7 million and diluted earnings
per share was $0.45, $0.01 better than prior guidance. On a GAAP basis, operating income for the third fiscal
quarter of 2012 was $62.0 million and diluted earnings per share was $0.26.
“Skyworks outperformed our
addressable markets last quarter and the stage is set for a strong back half of 2012,” said David J.
Aldrich, president and chief executive officer of Skyworks. “Our strategic diversification across OEMs
and chipset partners is enabling us to produce consistently strong operating results despite the macro economy.
Specifically, we are gaining share within adjacent vertical markets including automotive, medical, avionics,
military, location services and broadband communications. At the same time, our innovative solutions are powering
the world’s most popular smartphones, tablets, home automation platforms and network infrastructure systems. In
short, we have created a differentiated business model that is delivering demonstrable, best in class mobile
internet growth with analog semiconductor shareholder returns.”
Q3 Business Highlights
- Unveiled SkyOne™ - a breakthrough front-end system for mobile platforms integrating
all RF and analog content between the transceiver and antenna
- Commenced volume production of wireless networking solutions in support of
Broadcom’s 802.11ac platforms
- Expanded portfolio of ultra low noise amplifiers for smart energy, public safety
radio, cellular infrastructure and other ISM band applications
- Ramped nine connectivity devices within a recently introduced ultra thin notebook
- Captured a receiver protection design win with Medtronic for heart
monitor applications
- Secured initial power management design wins at three new OEM customers with suite
of LED drivers
- Deployed analog solutions for low-noise receivers being used in automotive toll tag
transponder systems
- Introduced high power linear control ICs for TD-LTE base stations, repeaters and low
frequency military/microwave UHF and UVF radios
Fourth Fiscal Quarter 2012 Outlook
“Based on new program ramps and the depth of our product
pipeline, we expect to outpace market growth in the second half of 2012,” said Donald W. Palette, vice president
and chief financial officer of Skyworks. “For the fourth fiscal quarter we expect record revenue in the range of
$415 to $420 million with diluted non-GAAP earnings per share of $0.50 to $0.51, up more than 10 percent
sequentially.”
For further information regarding the use of non-GAAP financial measures in this press
release, please refer to the “Discussion Regarding the Use of Non-GAAP Financial Measures” set forth below.
Skyworks’ Third Fiscal Quarter 2012 Conference Call
Skyworks will host a conference call with analysts
to discuss its third fiscal quarter 2012 results and business outlook today at 5:00 p.m. Eastern time. To listen
to the conference call via the Internet, please visit the investor relations section of Skyworks’ Web site. To
listen to the conference call via telephone, please call 800-230-1059 (domestic) or 612-234-9959 (international),
confirmation code: 253196.
Playback of the conference call will begin at 9:00 p.m. Eastern time on July
18, and end at 9:00 p.m. Eastern time on July 25. The replay will be available on Skyworks’ Web site or by calling
800-475-6701 (domestic) or 320-365-3844 (international), access code: 253196.
About Skyworks
Skyworks Solutions, Inc. is an innovator of high performance analog semiconductors. Leveraging core
technologies, Skyworks supports automotive, broadband, cellular infrastructure, energy management, GPS,
industrial, medical, military, wireless networking, smartphone and tablet applications. The Company’s portfolio
includes amplifiers, attenuators, circulators, detectors, diodes, directional couplers, front-end modules,
hybrids, infrastructure RF subsystems, isolators, lighting and display solutions, mixers/demodulators,
optocouplers, optoisolators, phase shifters, PLLs/synthesizers/VCOs, power dividers/combiners, power management
devices, receivers, switches and technical ceramics.
Headquartered in
Woburn, Mass., Skyworks is worldwide with engineering, manufacturing, sales and service facilities
throughout
Asia, Europe and
North America. For more information, please visit Skyworks’ Web site at:
www.skyworksinc.com
Safe Harbor Statement
This news 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 without limitation information relating to
future results and expectations of Skyworks (including without limitation certain projections and business
trends). 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, but are not limited to: uncertainty
regarding global economic and financial market conditions; the susceptibility of the wireless semiconductor
industry and the markets addressed by our, and our customers’, products to economic downturns; the timing,
rescheduling or cancellation of significant customer orders and our ability, as well as the ability of our
customers, to manage inventory; losses or curtailments of purchases or payments from key customers, or the timing
of customer inventory adjustments; the availability and pricing of third party semiconductor foundry, assembly and
test capacity, raw materials and supplier components; changes in laws, regulations and/or policies in
the United States that could adversely affect financial markets and our ability to raise capital;
our ability to develop, manufacture and market innovative products in a highly price competitive and rapidly
changing technological environment; whether we are able to successfully integrate Advanced Analogic Technologies’
operations; economic, social and political conditions in the countries in which we, our customers or our suppliers
operate, including security and health risks, possible disruptions in transportation networks and fluctuations in
foreign currency exchange rates; fluctuations in our manufacturing yields due to our complex and specialized
manufacturing processes; delays or disruptions in production due to equipment maintenance, repairs and/or
upgrades; our reliance on several key customers for a large percentage of our sales; fluctuations in the
manufacturing yields of our third party semiconductor foundries and other problems or delays in the fabrication,
assembly, testing or delivery of our products; our ability to timely and accurately predict market requirements
and evolving industry standards, and to identify opportunities in new markets; 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 rapidly develop new products and avoid product
obsolescence; 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; lengthy product development cycles that impact the timing of new product
introductions; unfavorable changes in product mix; the quality of our products and any remediation costs; shorter
than expected product life cycles; problems or delays that we may face in shifting our products to smaller
geometry process technologies and in achieving higher levels of design integration; and our ability to continue to
grow and maintain an intellectual property portfolio and obtain needed licenses from third parties, as well as
other risks and uncertainties, including, but not limited to, those detailed from time to time in our filings with
the Securities and Exchange Commission.
These forward-looking statements 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 Skyworks Solutions
are trademarks or registered trademarks of Skyworks Solutions,
Inc. or its subsidiaries in the United States
and in other countries. All other brands and names listed are trademarks of their respective companies.
|
| SKYWORKS SOLUTIONS, INC. |
| UNAUDITED CONSOLIDATED STATEMENT OF OPERATIONS |
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 29,
|
|
July 1,
|
|
June 29,
|
|
July 1,
|
| (in thousands, except per share amounts) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
| Net revenue |
|
$ |
389,038 |
|
|
$ |
356,075 |
|
|
$ |
1,147,468 |
|
|
$ |
1,016,606 |
|
| Cost of goods sold |
|
|
223,736 |
|
|
|
199,850 |
|
|
|
658,044 |
|
|
|
570,862 |
|
| Gross profit |
|
|
165,302 |
|
|
|
156,225 |
|
|
|
489,424 |
|
|
|
445,744 |
|
|
|
|
|
|
|
|
|
|
| Operating expenses: |
|
|
|
|
|
|
|
|
| Research and development |
|
|
56,050 |
|
|
|
43,067 |
|
|
|
155,977 |
|
|
|
121,228 |
|
| Selling, general and administrative |
|
|
37,463 |
|
|
|
35,451 |
|
|
|
120,609 |
|
|
|
98,167 |
|
| Amortization of intangibles |
|
|
8,608 |
|
|
|
4,006 |
|
|
|
24,260 |
|
|
|
7,246 |
|
| Restructuring and other charges |
|
|
1,137 |
|
|
|
1,475 |
|
|
|
7,752 |
|
|
|
1,475 |
|
| Total operating expenses |
|
|
103,258 |
|
|
|
83,999 |
|
|
|
308,598 |
|
|
|
228,116 |
|
|
|
|
|
|
|
|
|
|
| Operating income |
|
|
62,044 |
|
|
|
72,226 |
|
|
|
180,826 |
|
|
|
217,628 |
|
|
|
|
|
|
|
|
|
|
| Interest expense |
|
|
(10 |
) |
|
|
(465 |
) |
|
|
(598 |
) |
|
|
(1,463 |
) |
| Gain on early retirement of convertible debt |
|
|
- |
|
|
|
- |
|
|
|
139 |
|
|
|
- |
|
| Other income (loss), net |
|
|
96 |
|
|
|
(2 |
) |
|
|
(115 |
) |
|
|
(185 |
) |
| Income before income taxes |
|
|
62,130 |
|
|
|
71,759 |
|
|
|
180,252 |
|
|
|
215,980 |
|
| Provision for income taxes |
|
|
12,813 |
|
|
|
20,211 |
|
|
|
39,776 |
|
|
|
53,604 |
|
| Net income |
|
$ |
49,317 |
|
|
$ |
51,548 |
|
|
$ |
140,476 |
|
|
$ |
162,376 |
|
|
|
|
|
|
|
|
|
|
| Earnings per share: |
|
|
|
|
|
|
|
|
| Basic |
|
$ |
0.26 |
|
|
$ |
0.28 |
|
|
$ |
0.76 |
|
|
$ |
0.89 |
|
| Diluted |
|
$ |
0.26 |
|
|
$ |
0.27 |
|
|
$ |
0.74 |
|
|
$ |
0.85 |
|
| Weighted average shares: |
|
|
|
|
|
|
|
|
| Basic |
|
|
186,269 |
|
|
|
183,750 |
|
|
|
185,144 |
|
|
|
182,642 |
|
| Diluted |
|
|
192,457 |
|
|
|
191,380 |
|
|
|
191,051 |
|
|
|
190,628 |
|
|
|
| SKYWORKS SOLUTIONS, INC. |
| UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES |
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 29,
|
|
July 1,
|
|
June 29,
|
|
July 1,
|
| (in thousands) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
| GAAP gross profit |
|
$ |
165,302 |
|
|
$ |
156,225 |
|
|
$ |
489,424 |
|
|
$ |
445,744 |
|
| Share-based compensation expense [a] |
|
|
2,111 |
|
|
|
2,178 |
|
|
|
7,030 |
|
|
|
5,397 |
|
| Acquisition-related expenses [b] |
|
|
652 |
|
|
|
1,617 |
|
|
|
3,574 |
|
|
|
1,617 |
|
| Non-GAAP gross profit |
|
$ |
168,065 |
|
|
$ |
160,020 |
|
|
$ |
500,028 |
|
|
$ |
452,758 |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP gross margin % |
|
|
43.2 |
% |
|
|
44.9 |
% |
|
|
43.6 |
% |
|
|
44.5 |
% |
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 29,
|
|
July 1,
|
|
June 29,
|
|
July 1,
|
| (in thousands) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
| GAAP operating income |
|
$ |
62,044 |
|
|
$ |
72,226 |
|
|
$ |
180,826 |
|
|
$ |
217,628 |
|
| Share-based compensation expense [a] |
|
|
18,569 |
|
|
|
14,543 |
|
|
|
53,653 |
|
|
|
42,688 |
|
| Acquisition-related (credits) expenses [b] |
|
|
(4,040 |
) |
|
|
2,857 |
|
|
|
8,056 |
|
|
|
3,505 |
|
| Amortization of intangible assets |
|
|
8,608 |
|
|
|
4,006 |
|
|
|
24,260 |
|
|
|
7,246 |
|
| Restructuring & other charges [c] |
|
|
1,137 |
|
|
|
1,475 |
|
|
|
7,752 |
|
|
|
1,475 |
|
| Litigation settlement gains and losses [d] |
|
|
5,261 |
|
|
|
2,300 |
|
|
|
5,778 |
|
|
|
2,300 |
|
| Deferred executive compensation |
|
|
143 |
|
|
|
143 |
|
|
|
429 |
|
|
|
451 |
|
| Non-GAAP operating income |
|
$ |
91,722 |
|
|
$ |
97,550 |
|
|
$ |
280,754 |
|
|
$ |
275,293 |
|
|
|
|
|
|
|
|
|
|
| Non-GAAP operating margin % |
|
|
23.6 |
% |
|
|
27.4 |
% |
|
|
24.5 |
% |
|
|
27.1 |
% |
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
|
June 29,
|
|
July 1,
|
|
June 29,
|
|
July 1,
|
| (in thousands) |
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
| GAAP net income |
|
$ |
49,317 |
|
|
$ |
51,548 |
|
|
$ |
140,476 |
|
|
$ |
162,376 |
|
| Share-based compensation expense [a] |
|
|
18,569 |
|
|
|
14,543 |
|
|
|
53,653 |
|
|
|
42,688 |
|
| Acquisition-related (credits) expenses [b] |
|
|
(4,040 |
) |
|
|
2,857 |
|
|
|
8,056 |
|
|
|
3,505 |
|
| Amortization of intangible assets |
|
|
8,608 |
|
|
|
4,006 |
|
|
|
24,260 |
|
|
|
7,246 |
|
| Restructuring & other charges [c] |
|
|
1,137 |
|
|
|
1,475 |
|
|
|
7,752 |
|
|
|
1,475 |
|
| Litigation settlement gains and losses [d] |
|
|
5,261 |
|
|
|
2,300 |
|
|
|
5,778 |
|
|
|
2,300 |
|
| Deferred executive compensation |
|
|
143 |
|
|
|
143 |
|
|
|
429 |
|
|
|
451 |
|
| Gain on early retirement of convertible debt [e] |
|
|
- |
|
|
|
- |
|
|
|
(139 |
) |
|
|
- |
|
| Amortization of discount on convertible debt [f] |
|
|
- |
|
|
|
339 |
|
|
|
428 |
|
|
|
1,000 |
|
| Tax adjustments [g] |
|
|
7,083 |
|
|
|
15,827 |
|
|
|
21,388 |
|
|
|
35,423 |
|
| Non-GAAP net income |
|
$ |
86,078 |
|
|
$ |
93,038 |
|
|
$ |
262,081 |
|
|
$ |
256,464 |
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
June 29,
|
|
July 1,
|
|
June 29,
|
|
July 1,
|
|
|
2012 |
|
2011 |
|
2012 |
|
2011 |
|
|
|
|
|
|
|
|
|
| GAAP net income per share, diluted |
|
$ |
0.26 |
|
|
$ |
0.27 |
|
|
$ |
0.74 |
|
|
$ |
0.85 |
|
| Share-based compensation expense [a] |
|
|
0.10 |
|
|
|
0.08 |
|
|
|
0.28 |
|
|
|
0.22 |
|
| Acquisition-related (credits) expenses [b] |
|
|
(0.02 |
) |
|
|
0.02 |
|
|
|
0.04 |
|
|
|
0.02 |
|
| Amortization of intangible assets |
|
|
0.04 |
|
|
|
0.02 |
|
|
|
0.13 |
|
|
|
0.04 |
|
| Restructuring & other charges [c] |
|
|
- |
|
|
|
0.01 |
|
|
|
0.04 |
|
|
|
0.01 |
|
| Litigation settlement gains and losses [d] |
|
|
0.03 |
|
|
|
0.01 |
|
|
|
0.03 |
|
|
|
0.01 |
|
| Amortization of discount on convertible debt [f] |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.01 |
|
| Tax adjustments [g] |
|
|
0.04 |
|
|
|
0.08 |
|
|
|
0.11 |
|
|
|
0.19 |
|
| Non-GAAP net income per share, diluted |
|
$ |
0.45 |
|
|
$ |
0.49 |
|
|
$ |
1.37 |
|
|
$ |
1.35 |
|
|
SKYWORKS SOLUTIONS, INC.
DISCUSSION REGARDING THE USE OF NON-GAAP FINANCIAL MEASURES
Our earnings release
contains some or all of the following financial measures which 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, and (iv) non-GAAP net income per share
(diluted). As set forth in the “Unaudited Reconciliation 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 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 (which may not occur in each period presented) 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 useful forecasts.
We provide investors with non-GAAP gross profit and gross margin, non-GAAP operating income and operating
margin and non-GAAP net income 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, additional means of evaluating period-over-period operating performance and a method to facilitate certain
comparisons of operating results to peer companies. We also believe that providing non-GAAP operating income and
operating margin allows investors to assess the extent to which ongoing operations impact our overall financial
performance. We further believe that providing non-GAAP net income and non-GAAP net income per share (diluted)
allows investors to assess the overall financial performance of ongoing operations by eliminating the impact of
certain financing decisions related to our convertible debt and certain tax items which may not occur in each
period presented and which may represent non-cash items or gains or losses unrelated to our ongoing operations. 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, stock compensation expense, restructuring-related
charges and acquisition-related (credits) expenses. We calculate non-GAAP operating income by excluding from GAAP
operating income, stock compensation expense, restructuring-related charges, acquisition-related (credits)
expenses, litigation settlement gains and losses and certain deferred executive compensation. We calculate
non-GAAP net income and net income per share (diluted) by excluding from GAAP net income and net income per share
(diluted), stock compensation expense, restructuring-related charges, acquisition-related (credits) expenses,
litigation settlement gains and losses, amortization of discount on convertible debt, and certain deferred
executive compensation, as well as certain items related to the retirement of convertible debt, and certain tax
items, which may not occur in all periods for which financial information is presented. We exclude the 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:
Stock Compensation - 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 (Credits) Expenses
- including such items as, when applicable, amortization of acquired intangible assets, fair value adjustments
to contingent consideration, fair value charges incurred upon the sale of acquired inventory, acquisition-related
professional fees and deemed compensation expenses, because they are not considered by management in making
operating decisions and we believe that such expenses do not have a direct correlation to future business
operations and thereby including such charges does not accurately reflect the performance of our ongoing
operations for the period in which such charges are incurred.
Litigation Settlement Gains and
Losses - including gains and losses related to the resolution of other than ordinary course threatened and
actually filed lawsuits and other than ordinary course contractual disputes, because (1) they are not considered
by management in making operating decisions, (2) such gains and losses tend to be infrequent in nature, (3) such
gains and losses are generally not directly controlled by management, (4) we believe such gains and losses do not
necessarily reflect the performance of our ongoing operations for the period in which such charges are recognized
and (5) the amount of such gains or losses can vary significantly between companies and make comparisons
difficult.
Restructuring-Related Charges - because, to the extent such charges impact a period
presented, we believe that they have no direct correlation to future business operations and including such
charges does not necessarily reflect the performance of our ongoing operations for the period in which such
charges are incurred.
Deferred Executive Compensation - including charges related to any contingent
obligation pursuant to an executive severance agreement
because we believe the period over which the
obligation is amortized may not reflect the period of benefit and that such expense has no direct correlation with
our recurring business operations and including such expenses does not accurately reflect the compensation expense
for the period in which incurred.
Amortization of Discount on Convertible Debt - comprised of the
amortization of the debt discount recorded at inception of the convertible debt borrowing related to the adoption
of ASC 470-20, because the expense is dependent on fair value assessments and is not considered by management when
making operating decisions.
Gains and Losses on Retirement of Convertible Debt - because, to the
extent that gains or losses from such repurchases impact a period presented, we do not believe that they reflect
the underlying performance of ongoing business operations for such period.
Certain Income Tax Items
- including certain deferred tax charges and benefits which do not result in a current tax payment or tax refund
and other adjustments which are not indicative of 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
operating performance or ongoing business. Further, non-GAAP financial measures are likely to have limited value
for purposes of drawing comparisons between companies because different companies may calculate 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 a forward looking estimate of non-GAAP
diluted earnings per share for the fourth quarter of our 2012 fiscal year (“Q4 2012”). We provide this non-GAAP
measure to investors on a prospective basis for the same reasons (set forth above) that we provide them to
investors on a historical basis. We are unable to provide a reconciliation of our forward looking estimate of Q4
2012 non-GAAP diluted earnings per share to a forward looking estimate of Q4 2012 GAAP diluted earnings per share
because certain information needed to make a reasonable forward looking estimate of GAAP diluted earnings per
share for Q4 2012 (other than estimated stock compensation expense of $0.10 per diluted share, certain tax items
of $0.07 per diluted share, estimated acquisition related expense of $0.05 per diluted share and estimated
deferred executive compensation expense and restructuring and other charges with a de minimis impact per diluted
share) is difficult to predict and estimate and is often dependent on future events which may be uncertain or
outside of our control. Such events may include unanticipated one time charges related to asset impairments (fixed
assets, intangibles or goodwill), unanticipated acquisition related costs, unanticipated litigation settlement
gains and losses and other unanticipated non-recurring items not reflective of ongoing operations. We believe the
probable significance of these unknown items, in aggregate, to be in the range of $0.00 to $0.10 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]
|
|
These charges represent expense recognized in accordance with ASC 718 -
Compensation, Stock Compensation. Approximately $2.1 million, $7.5 million and $9.0 million were included
in cost of goods sold, research and development expense and selling, general and administrative expense,
respectively, for the three months ended June 29, 2012. Approximately $7.0 million, $20.6 million and $26.0
million were included in cost of goods sold, research and development expense and selling, general and
administrative expense, respectively, for the nine months ended June 29, 2012.
|
|
|
|
|
|
For the three months ended July 1, 2011, approximately $2.2 million, $4.2 million and
$8.1 million were included in costs of goods sold, research and development expense and selling, general and
administrative expense, respectively. For the nine months ended July 1, 2011 approximately $5.4 million, $13.1
million and $24.2 million were included in costs of goods sold, research and development expense and selling,
general and administrative expense, respectively.
|
|
|
|
|
[b]
|
|
The acquisition-related expense recognized during the three months and nine months
ended June 29, 2012 includes a $0.7 million and $3.6 million charge to cost of sales related to the sale of
acquired inventory and $0.7 million and $9.9 million in transaction costs included in general and
administrative expenses associated with acquisitions, and an arbitration, completed or contemplated during the
three months and nine months ended June 29, 2012, respectively. Also included in general and administrative
expenses for the three months and nine months ended June 29, 2012 is a $5.4 million credit due to a reduction
in the estimated fair value of contingent consideration liabilities associated with acquisitions.
|
|
|
|
|
|
The acquisition-related expense recognized during the three months
and nine months ended July 1, 2011 includes a $1.6 million charge to cost of sales related to the sale of
acquired inventory. Also included in acquisition-related expense is $1.2 million and $1.9 million in
transaction costs associated with acquisitions completed or contemplated during the three months and nine
months ended July 1, 2011, respectively. |
|
|
|
|
[c]
|
|
During the nine months ended June 29, 2012, the Company implemented a restructuring
plan to reduce the headcount associated with its acquisition of Advanced Analogic Technologies, Inc. For the
three months and nine months ended June 29, 2012, the Company recorded $1.1 million and $7.8 million,
respectively, primarily related to this restructuring plan.
|
|
|
|
|
|
During the three months ended July 1, 2011, the Company implemented
a restructuring plan to reduce the headcount associated with its acquisition of SiGe Semiconductor, Inc. |
|
|
|
|
[d]
|
|
During the three months and nine months ended June 29, 2012, the
Company recognized a $5.3 million and $5.8 million charge, respectively, related to the resolution of
contractual disputes.
|
|
|
|
|
|
During the three months and nine months ended July 1, 2011, the
Company recognized a $2.3 million charge related to the resolution of a contractual dispute. |
|
|
|
|
[e]
|
|
The gain recorded during the nine months ended June 29, 2012
relates to the retirement of the Company's 1.50% convertible subordinated notes due on March 1, 2012. |
|
|
|
|
[f]
|
|
These charges represent the amortization expense recognized in
accordance with ASC 470-20. Approximately $0.4 million of amortization expense was recognized during the nine
months ended June 29, 2012. |
|
|
|
|
|
Approximately $0.3 and $1.0 million, respectively, of amortization
expense was recognized during the three months and nine months ended July 1, 2011. |
|
|
|
|
[g]
|
|
For the three months and nine months ended June 29, 2012, these
amounts primarily represent the utilization of net operating loss and research and development tax credit
carryforwards and non-cash expense related to uncertain tax positions. |
|
|
|
|
|
During the three months and nine months ended July 1, 2011, these
amounts primarily represent the utilization of net operating loss and research and development credit
carryforwards.
|
|
|
| SKYWORKS SOLUTIONS, INC. |
| UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET |
|
|
|
June 29, |
|
Sept. 30, |
| (in thousands) |
|
2012 |
|
2011 |
| Assets |
|
|
|
|
| Current assets: |
|
|
|
|
| Cash and cash equivalents |
|
$ |
327,915 |
|
$ |
410,799 |
| Accounts receivable, net |
|
|
246,894 |
|
|
177,940 |
| Inventory |
|
|
209,947 |
|
|
198,183 |
| Prepaid expenses and other current assets |
|
|
44,734 |
|
|
29,412 |
| Property, plant and equipment, net |
|
|
266,039 |
|
|
251,365 |
| Goodwill and intangible assets, net |
|
|
907,907 |
|
|
749,849 |
| Other assets |
|
|
86,457 |
|
|
72,841 |
| Total assets |
|
$ |
2,089,893 |
|
$ |
1,890,389 |
|
|
|
|
|
| Liabilities and Equity |
|
|
|
|
| Current liabilities: |
|
|
|
|
| Convertible notes |
|
|
- |
|
|
26,089 |
| Accounts payable |
|
|
135,597 |
|
|
115,290 |
| Accrued liabilities and other current liabilities |
|
|
103,974 |
|
|
105,717 |
| Other long-term liabilities |
|
|
48,657 |
|
|
34,198 |
| Stockholders' equity |
|
|
1,801,665 |
|
|
1,609,095 |
| Total liabilities and equity |
|
$ |
2,089,893 |
|
$ |
1,890,389 |
|
Source: Skyworks Solutions, Inc.
Skyworks
Media Relations:
Pilar Barrigas, 949-231-3061
or
Skyworks Investor Relations:
Stephen
Ferranti, 781-376-3056
Contact
Amanda Ingalls,
(949) 231-3045
ssales@skyworksinc.com
www.skyworksinc.com
Date Posted 7/20/2012
|
|
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