Skyworks Raises Revenue and Earnings Outlook

  Skyworks Raises Revenue and Earnings Outlook

  Increases Current Quarter Guidance to $570 Million in Revenue and $0.80 of
                             Non-GAAP Diluted EPS

Business Wire

WOBURN, Mass. -- June 3, 2014

Skyworks Solutions, Inc. (NASDAQ: SWKS), an innovator of high performance
analog semiconductors enabling a broad range of end markets, today updated its
financial outlook for the third quarter of fiscal 2014. The Company now
anticipates current quarter revenue of $570 million, representing a 31 percent
year-over-year increase and 19 percent sequential growth. Skyworks also
expects to deliver non-GAAP diluted earnings per share of $0.80, reflecting a
48 percent increase when compared to the same period a year ago and 29 percent
sequential growth. The Company had previously guided to $535 million in
revenue and $0.73 of non-GAAP diluted earnings per share on April 22, 2014 as
part of its second fiscal quarter earnings release.

“As our upwardly revised outlook reflects, Skyworks is capitalizing on the
growing opportunity within the Internet of Things as well as increasing analog
complexity associated with  higher data rate connectivity standards, both of
which are enabling us to substantially outpace the growth of the broader
semiconductor market,” said David J. Aldrich, chairman and chief executive
officer of Skyworks. “These macro trends continue to validate our investments
in highly differentiated, custom solutions that are facilitating an expanding
set of end markets. Based on our design win traction and order visibility, we
anticipate continued strength beyond the June quarter as our products continue
to gain momentum.”

“We also expect our recently announced joint venture with Panasonic to further
enrich our systems capabilities, broaden our technology portfolio and enhance
our financial returns,” said Donald W. Palette, executive vice president and
chief financial officer of Skyworks. “In fact, we anticipate the Panasonic
transaction will provide at least 100 basis points of gross margin accretion
in fiscal 2015, paving the way for continued top- and bottom-line
outperformance for the foreseeable future.”

About Skyworks

Skyworks Solutions, Inc. is an innovator of high performance analog
semiconductors. Leveraging core technologies, Skyworks supports automotive,
broadband, wireless 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.

         DISCUSSION REGARDING THE USE OF NON-GAAP FINANCIAL MEASURES

This press release contains a forward-looking estimate of non-GAAP diluted
earnings per share that has not been calculated in accordance with United
States Generally Accepted Accounting Principles (“GAAP”). We estimate such
forward-looking non-GAAP diluted earnings per share by excluding certain
expenses and other items from the respective GAAP financial estimate.
Management uses certain non-GAAP financial measures, including non-GAAP
diluted earnings per share, 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 ongoing business 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 more difficult, obscure trends in
ongoing operations or reduce management's ability to make useful forecasts.

We provide investors with non-GAAP financial measures 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 diluted earnings per share
allows investors to better 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 non-GAAP financial measures contributes
to enhanced financial reporting transparency and provides investors with added
clarity about complex financial performance measures.

We calculate non-GAAP diluted earnings per share by excluding from GAAP
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 non-GAAP
diluted earnings per share for the reasons set forth with respect to each such
excluded item below:

Share-Based Compensation - because (1) the total 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
expense can vary significantly between companies due to factors that can be
outside of the control of such companies.

Acquisition-Related Expenses - including items such 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. We believe 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 estimate of diluted earnings per share presented in this press
release should not be considered in isolation and is not an alternative for
GAAP diluted earnings per share. Investors are cautioned against placing undue
reliance on this non-GAAP financial measure and are urged to review and
consider carefully the adjustments made by management to the corresponding
GAAP financial measure. Non-GAAP financial measures may have limited value as
analytical tools because they may exclude certain expenses that some investors
consider important in evaluating a company’s 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.

This press release contains a forward-looking estimate of non-GAAP diluted
earnings per share for the third quarter of our 2014 fiscal year ("Q3
FY2014"). We are unable to provide a reconciliation of our forward-looking
estimate of Q3 FY2014 non-GAAP diluted earnings per share to a forward-looking
estimate of Q3 FY2014 GAAP diluted earnings per share because certain
information needed to make a reasonable forward-looking estimate of GAAP
diluted earnings per share for Q3 FY2014 (other than estimated share-based
compensation expense of $0.10 per diluted share, certain tax items of $0.11
per diluted share and estimated amortization of intangibles of $0.03 per
diluted share) is difficult to 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.

Contact:

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