News

26 May 2010

 

Skyworks retires an extra $20.4m of principal convertible debt

Over the past week, Skyworks Solutions Inc of Woburn, MA, USA, which makes linear products, power amplifiers, front-end modules and radio solutions for handset and infrastructure equipment, has retired an additional $20.4m of convertible notes with an original maturity date of March 2012.

Skyworks says that, with the early retirement of this debt, it has eliminated potential future dilution of 2.1 million shares and, at a higher level, it continues to enhance its overall capital structure.

At the end of fiscal second-quarter 2010 (to end March), Skyworks maintained $412m in cash and cash equivalents with a principal value of $47m in long-term convertible debt. By comparison, at the end of the fiscal Q2/2008, the firm held $228m in cash and cash equivalents and $200m in long-term debt.

“Skyworks has generated $323m in cash flow from operations over the past six quarters, enabling us to efficiently deleverage our balance sheet,” says chief financial officer Donald W. Palette. “This financial strategy has supported increasing business throughout the economic downturn as customers, suppliers and partners appreciate the strength of our balance sheet in today's market environment,” he adds. “As a result, we intend to outperform our addressed markets and further improve our capital structure going forward."

See related items:

Skyworks' March quarter beats guidance with 38% year-on-year growth

Skyworks raises March-quarter revenue guidance from $225m to $230–235m

Skyworks reports revenue up 17% year-on-year to record $245m

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Visit: www.skyworksinc.com