Skyworks Solutions, Inc. (Nasdaq: SWKS), a pioneering force in high-performance analog and mixed-signal semiconductors connecting individuals, locations, and devices, has released its financial results for the first fiscal quarter ending on December 29, 2023.
In the first fiscal quarter of 2024, the company recorded a revenue of $1.202 billion. On a GAAP basis, the operating income was $258.3 million, accompanied by diluted earnings per share of $1.44. On a non-GAAP basis, the operating income reached $365.7 million, and non-GAAP diluted earnings per share were $1.97.
Liam K. Griffin, Chairman, CEO, and President of Skyworks, expressed satisfaction with the company’s performance, stating, “Skyworks continues to execute well and generate robust profitability in light of ongoing macroeconomic volatility.” He highlighted the achievement of a record quarterly free cash flow of $753 million, attributing it to effective working capital management and reduced capex intensity. Griffin also noted positive signs of recovery in the Android smartphone market.
Business Highlights for the First Fiscal Quarter:
- Secured multiple design wins in infrastructure, including optical transport products in collaboration with a major operator in India and timing devices for 5G small cells for private networks.
- Expanded the Wi-Fi design win pipeline with notable products such as Cisco’s enterprise access point, Linksys tri-band mesh router, and TP-Link’s tri-band gaming router.
- Introduced next-generation smart energy solutions through collaborations with Google’s Nest temperature sensor and Itron’s residential gas meter.
- Enhanced design win momentum in the automotive sector, covering telematics, infotainment systems, and on-board chargers across leading OEMs.
Looking forward to the second fiscal quarter of 2024, Skyworks provided earnings guidance on a non-GAAP basis due to the complexity of estimating certain information reconciling with GAAP. Kris Sennesael, Senior Vice President and CFO of Skyworks, outlined expectations for the March quarter, anticipating revenue between $1.02 billion and $1.07 billion. At the mid-point of this range, non-GAAP diluted earnings per share are projected to be $1.52. Sennesael mentioned the anticipated seasonal downturn in the mobile business, consistent with historical patterns, and modest growth in broad markets compared to the December quarter. Further details on the use of non-GAAP financial measures can be found in the attached Discussion Regarding the Use of Non-GAAP Financial Measures in the earnings release.