New MEMS White Paper

Download the latest Logitech white paper and learn more about MEMS processing technology and techniques

 

 

 

News

30 April 2007

 

Skyworks revenues hit by Motorola slump, but income still triples year-on-year

For its fiscal second-quarter 2007 (to end March), GaAs RFIC maker Skyworks Solutions Inc of Woburn, MA, USA has reported revenue of $180.2m. This is up 5% compared to core revenue of $172.3m a year ago, although down 2.7% from $185.2m including revenues from baseband products (discontinued last October). It is also down 8% sequentially on $196m in the quarter to end December.

Like its main rival RF Micro Devices, Skyworks has been hit by falling orders from the world’s second biggest cell-phone handset maker Motorola, whose falling unit sales have produced an inventory build-up of.GaAs components such as power amplifiers and front-end modules. Motorola accounts for 20-25% of Skyworks’ revenue.

Nevertheless, Skyworks has seen a rise in operating income from $2.5m a year ago to $13.0m, and in net income from $0.9m a year ago to $12.2m, in accordance with generally accepted accounting principles ( GAAP ) . On a pro forma basis (excluding baseband exit charges, for example), operating income has risen from $6.7m a year ago to $17.6m, and net income has risen from $4.6m to $16.7m.

“Skyworks’ second fiscal quarter results demonstrate the strength of our new business model and reflects our efforts since exiting the baseband product area two quarters ago,” says president and CEO David J. Aldrich. “We have since focused exclusively on our core analog and RF businesses and have improved profitability more than three-fold year over year,” he adds. “Our earnings leverage will become even more evident as we ramp several key, high-profile programs over the next several months."

During the quarter, Skyworks says it received production orders for a front-end solution in support of a forthcoming multimedia, music platform; powered several popular models with Helios, (including LG’s GPRS Chocolate series and Samsung's ultra-slim EDGE Trace); and unveiled the Helios WEDGE transceiver (the industry's first single-chip all-CMOS radio solution that eliminates the need for interstage filters). Skyworks also expanded its Linear Products portfolio with 15 new products, including CMOS switches, high-performance gain blocks and personal area networking solutions targeting broadband, infrastructure, medical, and automotive applications.

Consequently, for its fiscal third quarter, Skyworks expects that several of its new product ramps will largely offset the weakness at the Motorola.

See related items:

RFMD breaks $1bn annually, but Motorola inventory correction depresses March and June quarters

Handset shipment growth slows to 10% year-on-year

Inventory build-up trims mobile handset shipment growth to 12% in Q1/2007

Skyworks grows revenues 8%, excluding discontinued base-band operations

Visit: http://www.skyworksinc.com