Skyworks Exceeds Q1 FY14 Revenue and EPS Guidance

  Skyworks Exceeds Q1 FY14 Revenue and EPS Guidance

  *Delivers $505 Million in Revenue, Up 11% Y-o-Y and 6% Sequentially
  *Expands Non-GAAP Gross Margin to 44.5% (43.9% GAAP) and Improves Operating
    Margin to 28.1% (23.0% GAAP)
  *Posts $0.67 of Diluted Non-GAAP EPS ($0.49 GAAP)
  *Generates $159 Million in Cash Flow from Operations
  *Guides to Better-than-Seasonal Performance in Q2

Business Wire

WOBURN, Mass. -- January 16, 2014

Skyworks Solutions, Inc. (NASDAQ: SWKS) an innovator of high performance
analog semiconductors enabling a broad range of end markets, today reported
first fiscal quarter results for the period ending December 27, 2013. Revenue
for the quarter was $505.2 million, up 11 percent year-over-year and 6 percent
sequentially.

On a non-GAAP basis, operating income for the first fiscal quarter of 2014 was
$141.8 million, up 24 percent from $114.8 million in the first fiscal quarter
of 2013. Non-GAAP diluted earnings per share for the first fiscal quarter was
$0.67 compared to $0.55 for the prior year first fiscal quarter. On a GAAP
basis, operating income for the first fiscal quarter of 2014 was $116.0
million and diluted earnings per share was $0.49.

“Skyworks is off to a great start in fiscal 2014 as we exceeded guidance and
delivered strong performance across all key financial and operational
metrics,” said David J. Aldrich, president and chief executive officer of
Skyworks. “We are capitalizing on unprecedented demand for wireless ubiquity
and the Internet of Things. Specifically, Skyworks is empowering connectivity
across a number of strategic applications including medical devices, wearable
technologies, home automation and hybrid vehicles as well as smartphones and
tablets, linking people, places and things to improve the way the world
communicates.”

Q1 Business Highlights

  *Captured navigational-assist content with Volkswagen across next year
    models
  *Supported Nest’s energy-efficient, intelligent thermostats and smoke
    detectors
  *Commenced volume production of wireless home lighting platforms at Belkin
  *Enabled wearable technologies at Philips for emerging medical applications
  *Secured key sockets within FitBit’s smart scale and connected wristband
    systems
  *Leveraged 802.11ac solutions in gaming consoles, set-top boxes, BluRay®
    players and LED/4K TVs for enhanced video streaming applications
  *Introduced 4G-LTE base station RF subsystems at Ericsson
  *Shipped LED backlight drivers to a leading smartphone and tablet OEM
  *Ramped SkyOne™ at HTC and Samsung
  *Launched envelope tracking solutions within multiple 4G platforms
  *Unveiled a suite of antenna switch modules with dual-mode MIPI capability
  *Repurchased approximately 670,000 shares of common stock

Second Quarter 2014 Outlook

“Skyworks is substantially outpacing the analog semiconductor industry driven
by our broadening market footprint and new product launches,” said Donald W.
Palette, vice president and chief financial officer of Skyworks.
“Specifically, for the second fiscal quarter of 2014, we anticipate revenue to
be up 11 percent year-over-year to approximately $470 million with non-GAAP
diluted earnings per share up 23 percent year-over-year to $0.59.”

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 2014 Conference Call

Skyworks will host a conference call with analysts to discuss its first 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 800-288-8961 (domestic) or 612-332-0634
(international), confirmation code: 313554.

Playback of the conference call will begin at 9:00 p.m. Eastern time on
January 16, and end at 9:00 p.m. Eastern time on January 23. The replay will
be available on Skyworks' Web site or by calling 800-475-6701 (domestic) or
320-365-3844 (international), access code: 313554.

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
                                                   
                                          Dec. 27,   Dec. 28,
(in millions, except per share amounts)   2013       2012
                                                     
Net revenue                               $  505.2   $  453.7
Cost of goods sold                          283.2     261.1
Gross profit                                 222.0      192.6
                                                     
Operating expenses:
Research and development                     58.4       58.1
Selling, general and administrative          41.1       38.1
Amortization of intangibles                  6.5        8.2
Restructuring and other charges             -         1.6
Total operating expenses                     106.0      106.0
                                                     
Operating income                             116.0      86.6
                                                     
Other income, net                           -         0.2
Income before income taxes                   116.0      86.8
Provision for income taxes                  21.5      20.3
Net income                                $  94.5    $  66.5
                                                     
Earnings per share:
Basic                                     $  0.51    $  0.35
Diluted                                   $  0.49    $  0.34
Weighted average shares:
Basic                                        186.2      189.4
Diluted                                      191.2      194.0



SKYWORKS SOLUTIONS, INC.
UNAUDITED RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                                                      
                                                       Three Months Ended
                                                                 
                                                       Dec. 27,    Dec. 28,
(in millions)                                          2013        2012
                                                                   
GAAP gross profit                                      $ 222.0     $ 192.6
Share-based compensation expense [a]                    2.7       2.4   
Non-GAAP gross profit                                  $ 224.7    $ 195.0 
                                                                   
Non-GAAP gross margin %                                  44.5  %     43.0  %
                                                       
                                                       Three Months Ended
                                                                   
                                                       Dec. 27,    Dec. 28,
(in millions)                                          2013        2012
                                                                   
GAAP operating income                                  $ 116.0     $ 86.6
Share-based compensation expense [a]                     18.8        17.7
Acquisition-related expense [b]                          -           0.6
Amortization of intangibles                              6.5         8.2
Restructuring and other charges [c]                      -           1.6
Litigation settlement gains, losses and expenses [d]     0.5         -
Deferred executive compensation                         -         0.1   
Non-GAAP operating income                              $ 141.8    $ 114.8 
                                                                   
Non-GAAP operating margin %                              28.1  %     25.3  %
                                                       
                                                       Three Months Ended
                                                                   
                                                       Dec. 27,    Dec. 28,
(in millions)                                          2013        2012
                                                                   
GAAP net income                                        $ 94.5      $ 66.5
Share-based compensation expense [a]                     18.8        17.7
Acquisition-related expense [b]                          -           0.6
Amortization of intangibles                              6.5         8.2
Restructuring and other charges [c]                      -           1.6
Litigation settlement gains, losses and expenses [d]     0.5         -
Deferred executive compensation                          -           0.1
Tax adjustments [e]                                     7.4       11.9  
Non-GAAP net income                                    $ 127.7    $ 106.6 
                                                       
                                                       Three Months Ended
                                                                   
                                                       Dec. 27,    Dec. 28,
                                                       2013        2012
                                                                   
GAAP net income per share, diluted                     $ 0.49      $ 0.34
Share-based compensation expense [a]                     0.10        0.09
Amortization of intangibles                              0.03        0.05
Restructuring and other charges [c]                      -           0.01
Litigation settlement gains, losses and expenses [d]     0.01        -
Tax adjustments [e]                                     0.04      0.06  
Non-GAAP net income per share, diluted                 $ 0.67     $ 0.55  


                           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 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 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 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, 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 reportingtransparency
and provides investors with added clarity about complex financial performance
measures.

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:

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.

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.

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.

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.

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.

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.

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.

Our earnings release contains forward-looking estimates of non-GAAP diluted
earnings per share for the second quarter of our 2014 fiscal year ("Q2 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 Q2 2014 non-GAAP diluted earnings per share to a
forward-looking estimate of Q2 2014 GAAP diluted earnings per share because
certain information needed to make a reasonable forward-looking estimate of
GAAP diluted earnings per share for Q2 2014 (other than estimated share-based
compensation expense of $0.09 per diluted share, certain tax items of $0.07
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.


[a]  These charges represent expense recognized in accordance with ASC 718 -
      Compensation, Stock Compensation.
      Approximately $2.7 million, $7.5 million and $8.6 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 27, 2013.
      
      For the three months ended December 28, 2012, 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.
      
      The acquisition-related expense of $0.6 million recognized during the
[b]   three months ended December 28, 2012 primarily relates to general and
      administrative expenses associated with past acquisitions.
      
      During the three months ended December 28, 2012, the Company recorded a
[c]   $1.6 million charge related to a restructuring plan to reduce headcount
      primarily associated with its front end-solutions team.
      
      During the three months ended December 27, 2013, the Company recognized
[d]   a $0.5 million charge primarily related to general and administrative
      expense associated with ongoing litigations.
      
      During the three months ended December 27, 2013, these amounts primarily
[e]   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 ended December 28, 2012, 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.



SKYWORKS SOLUTIONS, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEET

                                       Dec. 27,   Sept. 27,
(in millions)                           2013        2013
Assets
Current assets:
Cash and cash equivalents               $ 648.6     $ 511.1
Accounts receivable, net                  267.1       292.7
Inventory                                 224.7       229.5
Other current assets                      39.7        40.0
Property, plant and equipment, net        323.7       328.6
Goodwill and intangible assets, net       858.8       865.3
Other assets                             72.8       65.9
Total assets                            $ 2,435.4   $ 2,333.1
                                                    
Liabilities and Equity
Current liabilities:
Accounts payable                        $ 107.3     $ 126.5
Accrued and other current liabilities     58.5        53.2
Other long-term liabilities               57.4        52.3
Stockholders' equity                     2,212.2    2,101.1
Total liabilities and equity            $ 2,435.4   $ 2,333.1


Contact:

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