[April 22, 2014] |
|
Skyworks Exceeds Q2 FY14 Revenue and EPS Guidance
WOBURN, Mass. --(Business Wire)--
Skyworks Solutions, Inc. (NASDAQ: SWKS) an innovator of high performance
analog semiconductors enabling a broad range of end markets, today
reported second fiscal quarter results for the period ending March 28,
2014. Revenue for the quarter was $481.0 million, up 13 percent
year-over-year and better than the Company's previous guidance for
$470.0 million.
On a non-GAAP basis, operating income for the second fiscal quarter of
2014 was $130.4 million, up 31 percent from $99.7 million in the year
ago period. Non-GAAP diluted earnings per share for the second fiscal
quarter was $0.62 versus guidance of $0.59 and compared to $0.48 for the
prior year second fiscal quarter. On a GAAP basis, operating income for
the second fiscal quarter of 2014 was $102.6 million and diluted
earnings per share was $0.40.
"Skyworks exceeded guidance across all key metrics last quarter and is
set to substantially outpace the broader semiconductor industry as we
capitalize on increasing analog system complexity driven by the Internet
of Things," said David J. Aldrich, president and chief executive officer
of Skyworks. "By providing custom solutions that help our customers
solve increasingly complex design challenges, we are enabling
connectivity across a number of new and previously unimagined end
markets and applications. Our expanding market footprint, customer
relationships and design win pipeline are translating into accelerating
growth and improving financial returns."
Q2 Business Highlights
-
Enabled NetGear's newest 802.11ac MU-MIMO routers and residential
gateways
-
Supported Audi's Homelink programmable car system
-
Captured high-reliability sockets with several aerospace and defense
suppliers including Cobham, EADS, Herley and Teledyne
-
Secured power management design wins with Samsung
-
Ramped connected home solutions supporting security sensors, motion
detectors, lighting controls and meters at Centralite and Landis+Gyr
-
Leveraged infrastructure portfolio for macro base station and remote
and multi-standard radio applications across Alcatel-Lucent, Ericsson,
Nokia Solutions and Networks and ZTE
-
Delivered analog control ICs to Medtronics for implantable heart
monitors
-
Developed the industry's leading dual flash driver utilizing
proprietary TrueFlash™ capability enabling sophisticated LED flash
management features
-
Powered Microsoft, Nintendo and Sony gaming platforms with analog and
connectivity solutions
-
Expanded footprint in multiple 4G TD-LTE architectures at leading
smartphone OEMs including Coolpad, HTC, Lenovo and ZTE
-
Launched next-generation SkyOne™ platforms with carrier aggregation,
additional frequency bands and MIPI® baseband interfaces
-
Enabled the Moto G smartphone with five front-end devices
-
Repurchased approximately two million shares of common stock
Dividend Update
Skyworks' Board of Directors has declared its first cash dividend of
$0.11 per share of the Company's common stock. The dividend is payable
on May 22, 2014 to stockholders of record at the close of business on
May 13, 2014.
Third Fiscal Quarter 2014 Outlook
"As our performance demonstrates, Skyworks is executing to our strategy
of gaining semiconductor content through system-level integration,
diversifying into adjacent vertical applications and relentlessly
pursuing operational excellence," said Donald W. Palette, vice president
and chief financial officer of Skyworks. "Looking forward, we are on
track to deliver strong, sustainable top line growth with continued
operating leverage. Specifically, for the third fiscal quarter of 2014,
we anticipate revenue to be up 23 percent year-over-year to $535 million
with non-GAAP diluted earnings per share up 35 percent year-over-year to
$0.73."
For further information regarding use of non-GAAP measures in this press
release, please refer to the Discussion Regarding the Use of Non-GAAP
Financial Measures set forth below.
Skyworks' Second Fiscal Quarter 2014 Conference Call
Skyworks will host a conference call with analysts to discuss its second
fiscal quarter 2014 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 800-230-1085 (domestic)
or 612-234-9959 (international), confirmation code: 323125.
Playback of the conference call will begin at 9:00 p.m. Eastern time on
April 22, and end at 9:00 p.m. Eastern time on April 29. The replay will
be available on Skyworks' Web site or by calling 800-475-6701 (domestic)
or 320-365-3844 (international), access code: 323125.
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, battery chargers, circulators, DC/DC converters,
demodulators, detectors, diodes, directional couplers, front-end
modules, hybrids, infrastructure RF subsystems, isolators, LED drivers,
mixers, modulators, optocouplers, optoisolators, phase shifters,
PLLs/synthesizers/VCOs, power dividers/combiners, power management
devices, receivers, switches, technical ceramics and voltage regulators.
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 (e.g., 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 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 that could
adversely affect either (i) the economy and our customers' demand for
our products or (ii) the 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; economic, social, military and geo-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.
The forward-looking statements contained in this news 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 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
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
March 28,
|
|
March 29,
|
|
March 28,
|
|
March 29,
|
(in millions, except per share amounts)
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
481.0
|
|
|
$
|
425.2
|
|
|
$
|
986.2
|
|
|
$
|
878.9
|
|
Cost of goods sold
|
|
|
268.6
|
|
|
|
248.5
|
|
|
|
551.8
|
|
|
|
509.6
|
|
Gross profit
|
|
|
212.4
|
|
|
|
176.7
|
|
|
|
434.4
|
|
|
|
369.3
|
|
|
|
|
|
|
|
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
Research and development
|
|
|
61.6
|
|
|
|
56.3
|
|
|
|
120.0
|
|
|
|
114.4
|
|
Selling, general and administrative
|
|
|
41.9
|
|
|
|
39.7
|
|
|
|
83.0
|
|
|
|
77.8
|
|
Amortization of intangibles
|
|
|
6.3
|
|
|
|
7.2
|
|
|
|
12.8
|
|
|
|
15.4
|
|
Restructuring and other charges
|
|
|
-
|
|
|
|
4.8
|
|
|
|
-
|
|
|
|
6.4
|
|
Total operating expenses
|
|
|
109.8
|
|
|
|
108.0
|
|
|
|
215.8
|
|
|
|
214.0
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
102.6
|
|
|
|
68.7
|
|
|
|
218.6
|
|
|
|
155.3
|
|
|
|
|
|
|
|
|
|
|
Other expense, net
|
|
|
(0.1
|
)
|
|
|
(1.4
|
)
|
|
|
(0.1
|
)
|
|
|
(1.1
|
)
|
Income before income taxes
|
|
|
102.5
|
|
|
|
67.3
|
|
|
|
218.5
|
|
|
|
154.2
|
|
Provision for income taxes
|
|
|
25.6
|
|
|
|
5.6
|
|
|
|
47.1
|
|
|
|
26.0
|
|
Net income
|
|
$
|
76.9
|
|
|
$
|
61.7
|
|
|
$
|
171.4
|
|
|
$
|
128.2
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.41
|
|
|
$
|
0.33
|
|
|
$
|
0.92
|
|
|
$
|
0.68
|
|
Diluted
|
|
$
|
0.40
|
|
|
$
|
0.32
|
|
|
$
|
0.89
|
|
|
$
|
0.66
|
|
Weighted average shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
187.4
|
|
|
|
188.7
|
|
|
|
186.8
|
|
|
|
189.1
|
|
Diluted
|
|
|
192.2
|
|
|
|
193.1
|
|
|
|
191.7
|
|
|
|
193.6
|
|
|
SKYWORKS SOLUTIONS, INC.
|
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
March 28,
|
|
March 29,
|
|
March 28,
|
|
March 29,
|
(in millions)
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
GAAP gross profit
|
|
$
|
212.4
|
|
|
$
|
176.7
|
|
|
$
|
434.4
|
|
|
$
|
369.3
|
|
Share-based compensation expense [a]
|
|
|
2.8
|
|
|
|
2.7
|
|
|
|
5.5
|
|
|
|
5.1
|
|
Acquisition-related expenses [b]
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
0.1
|
|
Non-GAAP gross profit
|
|
$
|
215.2
|
|
|
$
|
179.4
|
|
|
$
|
439.9
|
|
|
$
|
374.5
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP gross margin %
|
|
|
44.7
|
%
|
|
|
42.2
|
%
|
|
|
44.6
|
%
|
|
|
42.6
|
%
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
March 28,
|
|
March 29,
|
|
March 28,
|
|
March 29,
|
(in millions)
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
GAAP operating income
|
|
$
|
102.6
|
|
|
$
|
68.7
|
|
|
$
|
218.6
|
|
|
$
|
155.3
|
|
Share-based compensation expense [a]
|
|
|
20.8
|
|
|
|
18.3
|
|
|
|
39.6
|
|
|
|
36.0
|
|
Acquisition-related expenses [b]
|
|
|
0.1
|
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
0.8
|
|
Amortization of intangibles
|
|
|
6.3
|
|
|
|
7.2
|
|
|
|
12.8
|
|
|
|
15.4
|
|
Restructuring and other charges [c]
|
|
|
-
|
|
|
|
4.8
|
|
|
|
-
|
|
|
|
6.4
|
|
Litigation settlement gains, losses and expenses [d]
|
|
|
0.6
|
|
|
|
0.3
|
|
|
|
1.1
|
|
|
|
0.3
|
|
Deferred executive compensation
|
|
|
-
|
|
|
|
0.2
|
|
|
|
-
|
|
|
|
0.3
|
|
Non-GAAP operating income
|
|
$
|
130.4
|
|
|
$
|
99.7
|
|
|
$
|
272.2
|
|
|
$
|
214.5
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP operating margin %
|
|
|
27.1
|
%
|
|
|
23.4
|
%
|
|
|
27.6
|
%
|
|
|
24.4
|
%
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
March 28,
|
|
March 29,
|
|
March 28,
|
|
March 29,
|
(in millions)
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
|
|
$
|
76.9
|
|
|
$
|
61.7
|
|
|
$
|
171.4
|
|
|
$
|
128.2
|
|
Share-based compensation expense [a]
|
|
|
20.8
|
|
|
|
18.3
|
|
|
|
39.6
|
|
|
|
36.0
|
|
Acquisition-related expenses [b]
|
|
|
0.1
|
|
|
|
0.2
|
|
|
|
0.1
|
|
|
|
0.8
|
|
Amortization of intangibles
|
|
|
6.3
|
|
|
|
7.2
|
|
|
|
12.8
|
|
|
|
15.4
|
|
Restructuring and other charges [c]
|
|
|
-
|
|
|
|
4.8
|
|
|
|
-
|
|
|
|
6.4
|
|
Litigation settlement gains, losses and expenses [d]
|
|
|
0.6
|
|
|
|
0.3
|
|
|
|
1.1
|
|
|
|
0.3
|
|
Deferred executive compensation
|
|
|
-
|
|
|
|
0.2
|
|
|
|
-
|
|
|
|
0.3
|
|
Tax adjustments [e]
|
|
|
13.9
|
|
|
|
(0.8
|
)
|
|
|
21.3
|
|
|
|
11.1
|
|
Non-GAAP net income
|
|
$
|
118.6
|
|
|
$
|
91.9
|
|
|
$
|
246.3
|
|
|
$
|
198.5
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
|
|
|
|
|
|
|
|
|
|
|
March 28,
|
|
March 29,
|
|
March 28,
|
|
March 29,
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
GAAP net income per share, diluted
|
|
$
|
0.40
|
|
|
$
|
0.32
|
|
|
$
|
0.89
|
|
|
$
|
0.66
|
|
Share-based compensation expense [a]
|
|
|
0.11
|
|
|
|
0.10
|
|
|
|
0.21
|
|
|
|
0.19
|
|
Amortization of intangibles
|
|
|
0.03
|
|
|
|
0.04
|
|
|
|
0.07
|
|
|
|
0.08
|
|
Restructuring and other charges [c]
|
|
|
-
|
|
|
|
0.02
|
|
|
|
-
|
|
|
|
0.03
|
|
Litigation settlement gains, losses and expenses [d]
|
|
|
0.01
|
|
|
|
-
|
|
|
|
0.01
|
|
|
|
-
|
|
Tax adjustments [e]
|
|
|
0.07
|
|
|
|
-
|
|
|
|
0.11
|
|
|
|
0.06
|
|
Non-GAAP net income per share, diluted
|
|
$
|
0.62
|
|
|
$
|
0.48
|
|
|
$
|
1.29
|
|
|
$
|
1.02
|
|
|
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, and (iv)
non-GAAP diluted earnings per share. 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 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 (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, non-GAAP net income
and non-GAAP diluted earnings per share 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 also 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
further 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, restructuring-related charges, litigation settlement
gains, losses and expenses, certain deferred executive compensation
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 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.
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We calculate non-GAAP gross profit by excluding from GAAP gross
profit, share-based compensation expense and acquisition-related
expenses. We calculate non-GAAP operating income by excluding from
GAAP operating income, share-based compensation expense,
acquisition-related expenses, restructuring-related charges,
litigation settlement gains, losses and expenses and certain
deferred executive compensation. 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, restructuring-related charges,
litigation settlement gains, losses and expenses, certain deferred
executive compensation 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:
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Share-Based 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.
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Acquisition-Related 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
our 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.
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Restructuring-Related Charges - because, to the extent such
charges impact a period presented, we believe that they have no
direct correlation to our 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.
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Litigation Settlement Gains, Losses and Expenses -
including gains, losses and expenses 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, losses and expenses tend to be
infrequent in nature, (3) such gains, losses and expenses are
generally not directly controlled by management, (4) we believe
such gains, losses and expenses 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
and expenses can vary significantly between companies and make
comparisons less reliable.
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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.
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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.
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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
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.
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Our earnings release contains forward looking estimates of non-GAAP
diluted earnings per share for the third quarter of our 2014 fiscal
year ("Q3 2014"). We provide these non-GAAP measures 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 Q3 2014
non-GAAP diluted earnings per share to a forward looking estimate of
Q3 2014 GAAP diluted earnings per share because certain information
needed to make a reasonable forward looking estimate of GAAP diluted
earnings per share for Q3 2014 (other than estimated share-based
compensation expense of $0.10 per diluted share, certain tax items
of $0.11 per diluted share and estimated amortization of intangibles
of $0.03 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
litigation settlement gains, losses and expenses 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 $0.05 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.
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[a]
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These charges represent expense recognized in accordance with ASC
718 - Compensation, Stock Compensation.
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|
For the three months ended March 28, 2014, approximately $2.8
million, $8.6 million and $9.4 million were included in cost of
goods sold, research and development expense and selling, general
and administrative expense, respectively.
|
|
|
For the six months ended March 28, 2014, approximately $5.5
million, $16.1 million and $18.0 million were included in cost of
goods sold, research and development expense and selling, general
and administrative expense, respectively.
|
|
|
|
|
|
For the three months ended March 29, 2013, approximately $2.7
million, $7.5 million and $8.1 million were included in cost of
goods sold, research and development expense and selling, general
and administrative expense, respectively.
|
|
|
For the six months ended March 29 2013, approximately $5.1
million, $14.9 million and $16.0 million were included in cost of
goods sold, research and development expense and selling, general
and administrative expense, respectively.
|
|
|
|
[b]
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|
The acquisition-related expense of $0.1 million recognized during
the three months and six months ended March 28, 2014, primarily
relates to general and administrative expenses associated with
potential acquisitions.
|
|
|
|
|
|
The acquisition-related expense of $0.2 million and $0.8 million
recognized during the three months and six months ended March 29,
2013, respectively, primarily relates to general and
administrative expenses associated with past acquisitions.
|
|
|
|
[c]
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During the three months and six months ended March 29, 2013, the
Company implemented restructuring plans to reduce global
headcount. A $4.8 million and a $6.4 million charge were recorded
during the three months and six months ended March 29, 2013,
respectively, related to these plans.
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|
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|
[d]
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|
During the three months and six months ended March 28, 2014, the
Company recognized a $0.6 million and a $1.1 million charge,
respectively, primarily related to general and administrative
expense associated with ongoing litigations.
|
|
|
|
|
|
During the three months and six months ended March 29, 2013, the
Company recognized a $0.3 million charge primarily related to
general and administrative expenses associated with ongoing
litigations.
|
|
|
|
[e]
|
|
During the three months and six months ended March 28, 2014, these
amounts primarily represent the use of net operating loss and
research and development tax credit carryforwards, deferred tax
expense not affecting taxes payable, and non-cash expense related
to uncertain tax positions.
|
|
|
|
|
|
During the three months and six months ended March 29, 2013, these
amounts primarily represent the use of net operating loss and
research and development tax credit carryforwards and non-cash
expense related to uncertain tax positions. As a result of the
passage of the American Taxpayer Relief Act of 2012, the GAAP tax
rate includes a discrete adjustment for the retroactive
recognition of research and development tax credits.
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|
SKYWORKS SOLUTIONS, INC.
|
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
March 28,
|
|
Sept. 27,
|
(in millions)
|
|
2014
|
|
2013
|
Assets
|
|
|
|
|
Current assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
797.8
|
|
$
|
511.1
|
Accounts receivable, net
|
|
|
216.3
|
|
|
292.7
|
Inventory
|
|
|
216.6
|
|
|
229.5
|
Other current assets
|
|
|
38.2
|
|
|
40.0
|
Property, plant and equipment, net
|
|
|
343.9
|
|
|
328.6
|
Goodwill and intangible assets, net
|
|
|
852.5
|
|
|
865.3
|
Other assets
|
|
|
69.3
|
|
|
65.9
|
Total assets
|
|
$
|
2,534.6
|
|
$
|
2,333.1
|
|
|
|
|
|
Liabilities and Equity
|
|
|
|
|
Current liabilities:
|
|
|
|
|
Accounts payable
|
|
$
|
125.8
|
|
$
|
126.5
|
Accrued and other current liabilities
|
|
|
57.0
|
|
|
53.2
|
Other long-term liabilities
|
|
|
60.4
|
|
|
52.3
|
Stockholders' equity
|
|
|
2,291.4
|
|
|
2,101.1
|
Total liabilities and equity
|
|
$
|
2,534.6
|
|
$
|
2,333.1
|
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