Skyworks Exceeds Q1 FY13 Revenue and EPS Guidance

  Skyworks Exceeds Q1 FY13 Revenue and EPS Guidance

  *Delivers Revenue of $454 Million, up 15 Percent Year-Over-Year
  *Expands Operating Margin 70 Basis Points Sequentially to 25.3 Percent on a
    Non-GAAP Basis (19.1 Percent GAAP)
  *Posts $0.55 in Non-GAAP EPS ($0.34 GAAP)
  *Generates $148 Million in Cash Flow from Operations

Business Wire

WOBURN, Mass. -- January 30, 2013

Skyworks Solutions, Inc. (NASDAQ: SWKS), an innovator of high performance
analog semiconductors enabling a broad range of end markets, today reported
first fiscal quarter 2013 results for the period ending December 28, 2012.
Revenue for the quarter was $453.7 million, up 15 percent when compared to
$393.7 million in the first fiscal quarter of 2012 and exceeding the Company’s
guidance of $450 million.

On a non-GAAP basis, operating income for the first fiscal quarter of 2013 was
$114.8 million, up from $105.2 million in the comparable prior year period.
Non-GAAP diluted earnings per share for the first fiscal quarter was $0.55, a
penny better than guidance. On a GAAP basis, operating income for the first
fiscal quarter of 2013 was $86.6 million and diluted earnings per share was
$0.34.

“As our results and guidance reflect, Skyworks is enabling anytime, anywhere
communications across a diverse set of end markets and applications,” said
David J. Aldrich, president and chief executive officer of Skyworks. “We’re
capitalizing on growing consumer and enterprise demand for ubiquitous
connectivity spanning all modes of wireline and wireless communications. In
fact, our analog semiconductor solutions are increasingly at the heart of
everything from smartphones to smart appliances to home security systems to
satellites to medical sensors to hybrid vehicles. This market diversity
coupled with Skyworks’ leadership scale, product breadth and system IP is
setting the stage for continued market outperformance and shareholder value
creation.”

Q1 Business Highlights

  *Supported Nest’s market-leading, energy-efficient, intelligent thermostat
  *Developed high voltage protection circuits for Boston Scientific heart
    defibrillators
  *Introduced a sixteen channel LED TV backlighting controller at LG and
    others
  *Secured multiple SOI switch and antenna tuning design wins
  *Commenced volume production of radiation tolerant optocouplers supporting
    new Iridium satellites
  *Ramped analog solutions in support of Comcast’s Xfinity home security and
    surveillance systems
  *Captured connectivity sockets within the Google Chrome notebook series
  *Provided wireless solutions for Aclara’s suite of gas meters
  *Enabled the world’s smallest 4G LTE datacard with family of antenna switch
    modules
  *Launched camera flash drivers across Samsung’s Galaxy platforms
  *Repurchased 1.9 million shares of common stock

Second Fiscal Quarter 2013 Outlook

“Given order visibility and specific product launches, we expect to continue
to gain market share and capture additional content per platform in the
seasonally low March quarter,” said Donald W. Palette, vice president and
chief financial officer of Skyworks. “Specifically, for the second fiscal
quarter of 2013, we anticipate revenue to be up 15 percent year-over-year with
better than normal seasonality to approximately $420 million with non-GAAP
diluted earnings per share of $0.47.”

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' First Fiscal Quarter 2013 Conference Call

Skyworks will host a conference call with analysts to discuss its first fiscal
quarter 2013 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 800-288-8975 (domestic) or 612-332-0630
(international), confirmation code: 275282.

Playback of the conference call will begin at 9:00 p.m. Eastern time on Jan.
30, and end at 9:00 p.m. Eastern time on Feb. 6. The replay will be available
on Skyworks' Web site or by calling 800-475-6701 (domestic) or 320-365-3844
(international), access code: 275282.

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,
demodulators, detectors, diodes, directional couplers, front-end modules,
hybrids, infrastructure RF subsystems, isolators, lighting and display
solutions, mixers, modulators, 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 (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, including the
possibility of mandatory reductions in federal spending in the United States,
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 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.

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
                                                                 
                                                   Dec. 28,      Dec. 30,
(in thousands)                                     2012         2011    
                                                                 
Net revenue                                      $ 453,723     $ 393,740
Cost of goods sold                                 261,158      221,890 
Gross profit                                       192,565       171,850
                                                                 
Operating expenses:
  Research and development                         58,054        46,941
  Selling, general and administrative              38,128        42,909
  Amortization of intangibles                      8,156         6,312
  Restructuring and other charges                  1,644        720     
              Total operating expenses             105,982       96,882
                                                                 
Operating income                                   86,583        74,968
                                                                 
  Interest expense                                 (11     )     (481    )
  Gain on early retirement of convertible debt     -             76
  Other income, net                                270          99      
Income before income taxes                         86,842        74,662
Provision for income taxes                         20,349       17,536  
Net income                                       $ 66,493     $ 57,126  
                                                                 
  Earnings per share:
              Basic                              $ 0.35        $ 0.31
              Diluted                            $ 0.34        $ 0.30
  Weighted average shares:
              Basic                                189,377       183,956
              Diluted                              194,001       189,682
                                                                         
                                                                         

SKYWORKS SOLUTIONS, INC.
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                                              
                                                                  
                                                       Three Months Ended
                                                                     
                                                       Dec. 28,      Dec. 30,
(in thousands)                                         2012         2011    
                                                                     
GAAP gross profit                                    $ 192,565     $ 171,850
    Share-based compensation expense [a]               2,406         2,517
    Acquisition-related expense [b]                    11           76      
Non-GAAP gross profit                                $ 194,982    $ 174,443 
                                                                     
Non-GAAP gross margin %                                43.0    %     44.3    %
                                                                  
                                                       Three Months Ended
                                                                     
                                                       Dec. 28,      Dec. 30,
(in thousands)                                         2012         2011    
                                                                     
GAAP operating income                                $ 86,583      $ 74,968
    Share-based compensation expense [a]               17,696        15,750
    Acquisition-related expense [b]                    555           7,283
    Amortization of intangibles                        8,156         6,312
    Restructuring and other charges [c]                1,644         720
    Deferred executive compensation                    143          143     
Non-GAAP operating income                            $ 114,777    $ 105,176 
                                                                     
Non-GAAP operating margin %                            25.3    %     26.7    %
                                                                  
                                                       Three Months Ended
                                                                     
                                                       Dec. 28,      Dec. 30,
(in thousands)                                         2012         2011    
                                                                     
GAAP net income                                      $ 66,493      $ 57,126
    Share-based compensation expense [a]               17,696        15,750
    Acquisition-related expense [b]                    555           7,283
    Amortization of intangibles                        8,156         6,312
    Restructuring and other charges [c]                1,644         720
    Deferred executive compensation                    143           143
    Gain on early retirement of convertible debt       -             (76     )
    [d]
    Amortization of discount on convertible debt [e]   -             351
    Tax adjustments [f]                                11,919       8,632   
Non-GAAP net income                                  $ 106,606    $ 96,241  
                                                                  
                                                       Three Months Ended
                                                                     
                                                       Dec. 28,      Dec. 30,
                                                       2012         2011    
                                                                     
GAAP net income per share, diluted                   $ 0.34        $ 0.30
    Share-based compensation expense [a]               0.09          0.08
    Acquisition-related expense [b]                    -             0.04
    Amortization of intangibles                        0.05          0.03
    Restructuring and other charges [c]                0.01          0.01
    Tax adjustments [f]                                0.06         0.05    
Non-GAAP net income per share, diluted               $ 0.55       $ 0.51    
                                                                             
                                                                             

                           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
certainexpenses 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
ongoingbusiness 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
reportingtransparency 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
expenses. We calculate non-GAAP operating income by excluding from GAAP
operating income, stock compensation expense, restructuring-related charges,
acquisition-related 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 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 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 second quarter of our 2013 fiscal year ("Q2 2013").
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 Q2 2013 non-GAAP diluted earnings per share to a forward
looking estimate of Q2 2013 GAAP diluted earnings per share because certain
information needed to make a reasonable forward looking estimate of GAAP
diluted earnings per share for Q2 2013 (other than estimated stock
compensation expense of $0.10 per diluted share, certain tax items of $0.05
per diluted share, estimated acquisition related expense of $0.04 per diluted
share, restructuring and other charges of $0.01 per diluted share and
estimated deferred executive compensation expense with a de minimis impact on
diluted earnings per 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 $0.05 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.

    
[a]   These charges represent expense recognized in accordance with ASC 718 -
      Compensation, Stock Compensation.
      Approximately $2.4 million, $7.4 million and $7.9 million were included
      in cost of goods sold, research and development expense and selling,
      general and administrative expense, respectively, for the three months
      ended December 28, 2012.
      
      For the three months ended December 30, 2011, approximately $2.5
      million, $5.6 million and $7.7 million were included in cost of goods
      sold, research and development expense and selling, general and
      administrative expense, respectively.
      
[b]   The acquisition-related expense of $0.6 million recognized during the
      three months ended December 28, 2012 primarily relates to general and
      administrative expenses associated with acquisitions.
      
      The acquisition-related expense recognized during the three months ended
      December 30, 2011 includes a $0.1 million charge to cost of sales
      related to the sale of acquired inventory. Also included in
      acquisition-related expense is $7.2 million in transaction costs
      included in general and administrative expense associated with
      acquisitions, and an arbitration, completed or contemplated during the
      three months ended December 30, 2011.
      
      During the three months ended December 28, 2012, the Company implemented
[c]   a restructuring plan to reduce headcount primarily associated with its
      front end-solutions team. A $1.6 million charge to restructuring was
      recorded during the three months ended December 28, 2012 related to this
      plan.
      
      During the fiscal year ended September 30, 2011, the Company implemented
      a restructuring plan to reduce headcount associated with its acquisition
      of SiGe Semiconductor, Inc. A $0.7 million charge to restructuring was
      recorded during the three months ended December 30, 2011 related to this
      plan.
      
[d]   The gain recorded during the three months ended December 30, 2011
      relates to the early retirement of $9.4 million of the Company's 1.50%
      convertible subordinated notes due on March 1, 2012.
      
[e]   These charges represent the amortization expense recognized in
      accordance with ASC 470-20. Approximately $0.4 million of amortization
      expense was recognized during the three months ended December 30, 2011.
      
      During the three months ended December 28, 2012, these amounts primarily
[f]   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 ended December 30, 2011, these amounts primarily
      represent the utilization of research and development tax credit
      carryforwards and non-cash expense related to uncertain tax positions.

                                                   
SKYWORKS SOLUTIONS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET
               
                                          Dec. 28,      Sept. 28,
(in thousands)                            2012          2012
Assets
Current assets:
Cash and cash equivalents               $ 378,355     $ 307,110
Accounts receivable, net                  252,149       297,589
Inventory                                 229,534       232,920
Other current assets                      39,515        45,744
Property, plant and equipment, net        287,253       279,383
Goodwill and intangible assets, net       886,367       894,523
Other assets                              77,934        79,377
Total assets                            $ 2,151,107   $ 2,136,646
                                                        
Liabilities and Equity
Current liabilities:
Accounts payable                        $ 111,362     $ 140,583
Accrued and other current liabilities     44,326        42,121
Other long-term liabilities               51,450        48,467
Stockholders' equity                      1,943,969     1,905,475
Total liabilities and equity            $ 2,151,107   $ 2,136,646

Contact:

Skyworks Media Relations:
Pilar Barrigas, 949-231-3061
or
Skyworks Investor Relations:
Stephen Ferranti, 781-376-3056
 
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