- Delivers Revenue of $835.4 Million, Up
11% Sequentially
- GAAP Operating Margin 34.9%; Non-GAAP
Operating Margin 38.1%
- GAAP Diluted EPS $1.31; Non-GAAP
Diluted EPS $1.47
- Generates Record Cash Flow from
Operations of $455.0 Million
- Repurchases 3 Million Shares
- Guides to 7% to 9% Sequential Revenue
Growth
Skyworks Solutions, Inc. (NASDAQ: SWKS) an innovator of high
performance analog semiconductors connecting people, places and
things, today reported fourth fiscal quarter and year-end results
for the period ending September 30, 2016. Revenue for the fourth
fiscal quarter was $835.4 million, up 11 percent sequentially,
exceeding the Company’s guidance and consensus estimates.
On a GAAP basis, operating income for the fourth fiscal quarter
of 2016 was $291.9 million with diluted earnings per share of
$1.31. On a non-GAAP basis, operating income was $318.4 million
with non-GAAP diluted earnings per share of $1.47, $0.04 better
than the Company’s guidance and consensus estimates. Cash flow from
operations for the quarter was $455.0 million.
For fiscal year 2016, revenue was a record $3.3 billion with
GAAP diluted earnings per share of $5.18 and cash flow from
operations of $1.1 billion. Non-GAAP diluted earnings per share for
fiscal year 2016 was $5.57.
“As our results and outlook reflect, Skyworks is capitalizing on
the strength of both Mobile and Internet of Things ecosystems,”
said Liam K. Griffin, president and chief executive officer of
Skyworks. “Specifically, we are in the midst of a dramatic sea
change in the usage case for wireless technologies and the way they
are transforming how we live, work and play. As a virtual hub for
e-commerce, enterprise to the cloud, social media, gaming and
entertainment, mobile devices are rapidly evolving to address the
massive demand for data and speed across an increasingly crowded
spectrum. Skyworks is resolving this daunting complexity with
customized system-level solutions to ultimately improve the user
experience with higher levels of efficiency, enhanced streaming
capabilities and expanded network coverage. As a result, we are
well positioned to continue delivering above-market growth,
profitability and shareholder value.”
Fourth Fiscal Quarter Business Highlights
- Leveraged SkyOne® across Huawei’s Honor
8 global platform
- Powered Google’s flagship Pixel 4G LTE
smartphones
- Secured multiple 4G LTE design wins
with leading Chinese OEMs including Asus, Gionee, HTC, Meizu, Oppo,
Xiaomi and ZTE
- Commenced volume production of
diversity receive and antenna tuner solutions
- Supported Amazon’s Echo and Tap virtual
assistant devices
- Enabled Netgear’s Orbi router with
connectivity and analog control ICs
- Launched linear power amplifiers in
support of small cell ramps in China
- Delivered integrated 4G LTE modules for
Jaguar and Land Rover automobiles
- Ramped vehicle-to-vehicle communication
modules for Alps
- Captured ZigBee® content in Trilliant’s
smart grid communication systems
- Designed into a premier medical imaging
OEM for MRI applications
- Integrated GPS, connectivity and
switching solutions for GoPro drones
First Fiscal Quarter 2017 Outlook
We provide earnings guidance solely on a non-GAAP basis because
certain information necessary to reconcile such guidance to GAAP is
difficult to estimate and dependent on future events outside of our
control. Please refer to the attached Discussion Regarding the Use
of Non-GAAP Financial Measures in this press release for a further
discussion of our use of non-GAAP measures, including
quantification of known expected adjustment items.
“Entering fiscal year 2017, we are leveraging our scale,
customer partnerships and differentiated system solutions to
capture increasing content per platform across mobile connectivity
and Internet of Things applications,” said Kris Sennesael, senior
vice president and chief financial officer of Skyworks.
“Accordingly, for the first fiscal quarter of 2017, we anticipate
our revenue to be up 7 to 9 percent sequentially with operating
leverage driving non-GAAP diluted earnings per share of $1.58.”
Dividend Payment
Skyworks’ Board of Directors declared a cash dividend of $0.28
per share of the Company’s common stock, payable on December 8,
2016 to stockholders of record at the close of business on November
17, 2016.
Skyworks' Fourth Fiscal Quarter 2016 Conference Call
Skyworks will host a conference call with analysts to discuss
its fourth fiscal quarter 2016 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'
website. To listen to the conference call via telephone, please
call (800) 230-1059 (domestic) or (612) 234-9959 (international),
confirmation code: 403485.
Playback of the conference call will begin at 9:00 p.m. Eastern
time on November 3, and end at 9:00 p.m. Eastern time on November
10. The replay will be available on Skyworks' website or by calling
(800) 475-6701 (domestic) or (320) 365-3844 (international), access
code: 403485.
About Skyworks
Skyworks Solutions, Inc. is empowering the wireless networking
revolution. Our highly innovative analog semiconductors are
connecting people, places and things spanning a number of new and
previously unimagined applications within the automotive,
broadband, cellular infrastructure, connected home, industrial,
medical, military, smartphone, tablet and wearable markets.
Skyworks is a global company with engineering, marketing,
operations, sales and support facilities located throughout Asia,
Europe and North America and is a member of the S&P 500® and
Nasdaq-100® market indices (NASDAQ: SWKS). For more information,
please visit Skyworks’ website 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) and plans for dividend payments. 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: the susceptibility of the semiconductor
industry and the markets addressed by our, and our customers',
products to economic downturns; our reliance on several key
customers for a large percentage of our sales; losses or
curtailments of purchases or payments from key customers or the
timing of customer inventory adjustments; uncertainty regarding
global economic and financial market conditions; unfavorable
changes in product mix; shorter-than-expected product life cycles;
our ability to develop, manufacture and market innovative products
in a highly price-competitive and rapidly changing technological
environment; our ability to rapidly develop new products and avoid
product obsolescence; 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; delays or disruptions in production due to equipment
maintenance, repairs and/or upgrades; lengthy product development
cycles that impact the timing of new product introductions;
fluctuations in our manufacturing yields due to our complex and
specialized manufacturing processes; problems or delays that we may
face in shifting our products to smaller geometry process
technologies and in achieving higher levels of design integration;
the quality of our products and any remediation costs; the
availability and pricing of third-party semiconductor foundry,
assembly and test capacity, raw materials and supplier components;
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; the timing,
rescheduling or cancellation of significant customer orders and our
ability, as well as the ability of our customers, to manage
inventory; 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 continue to grow and maintain an
intellectual property portfolio and obtain needed licenses from
third parties; 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; 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 timely and
accurately predict market requirements and evolving industry
standards, and to identify opportunities in new markets; and 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
STATEMENTS OF OPERATIONS
Three Months Ended Year Ended Sept. 30, Oct. 2, Sept.
30, Oct. 2, (in millions, except per share amounts) 2016 2015 2016
2015 Net revenue $ 835.4 $ 880.8 $ 3,289.0 $ 3,258.4 Cost of
goods sold 411.0 444.6 1,623.8 1,703.9 Gross
profit 424.4 436.2 1,665.2 1,554.5 Operating expenses:
Research and development 73.2 82.4 312.4 303.2 Selling, general and
administrative 53.3 47.4 195.9 191.3 Amortization of intangibles
6.4 8.3 33.4 33.5 Restructuring and other (income) charges (0.4 )
0.5 4.8 3.4 Total operating expenses 132.5 138.6
546.5 531.4 Operating income 291.9 297.6 1,118.7 1,023.1
Other (expense) income, net (0.8 ) (1.4 ) (6.6 ) 0.5 Merger
termination fee - - 88.5 - Income before
income taxes 291.1 296.2 1,200.6 1,023.6 Provision for income taxes
44.3 67.0 205.4 225.3 Net income $ 246.8
$ 229.2 $ 995.2 $ 798.3 Earnings per
share: Basic $ 1.33 $ 1.21 $ 5.27 $ 4.21 Diluted $ 1.31 $ 1.18 $
5.18 $ 4.10 Weighted average shares: Basic 185.7 189.6 188.7 189.5
Diluted 188.8 194.8 192.1 194.9
SKYWORKS
SOLUTIONS, INC. UNAUDITED RECONCILIATIONS OF NON-GAAP
FINANCIAL MEASURES Three Months
Ended Year Ended Sept. 30, Oct. 2, Sept. 30, Oct. 2,
(in millions) 2016 2015 2016 2015 GAAP gross profit $ 424.4
$ 436.2 $ 1,665.2 $ 1,554.5 Share-based compensation expense [a]
1.9 3.9 11.3 14.5 Acquisition-related expenses [b] (0.4 ) -
1.4 0.2 Non-GAAP gross profit $ 425.9 $ 440.1
$ 1,677.9 $ 1,569.2 GAAP gross margin %
50.8 % 49.5 % 50.6 % 47.7 % Non-GAAP gross margin % 51.0 % 50.0 %
51.0 % 48.2 % Three Months Ended Year Ended
Sept. 30, Oct. 2, Sept. 30, Oct. 2, (in millions) 2016 2015 2016
2015 GAAP operating income $ 291.9 $ 297.6 $ 1,118.7 $
1,023.1 Share-based compensation expense [a] 19.7 25.5 78.0 99.9
Acquisition-related expenses [b] 0.3 2.3 7.5 8.4 Amortization of
intangibles [c] 6.4 8.3 33.4 33.5 Restructuring and other (income)
charges [d] (0.4 ) 0.5 4.8 3.4 Litigation settlement gains, losses
and expenses [e] (0.1 ) 0.9 1.7 3.0 Deferred executive compensation
[f] 0.6 0.1 0.6 0.1 Non-GAAP operating
income $ 318.4 $ 335.2 $ 1,244.7 $ 1,171.4
GAAP operating margin % 34.9 % 33.8 % 34.0 % 31.4 %
Non-GAAP operating margin % 38.1 % 38.1 % 37.8 % 36.0 %
Three Months Ended Year Ended Sept. 30, Oct. 2, Sept.
30, Oct. 2, (in millions) 2016 2015 2016 2015 GAAP net
income $ 246.8 $ 229.2 $ 995.2 $ 798.3 Share-based compensation
expense [a] 19.7 25.5 78.0 99.9 Acquisition-related expenses [b]
0.3 2.3 7.5 8.4 Amortization of intangibles [c] 6.4 8.3 33.4 33.5
Restructuring and other (income) charges [d] (0.4 ) 0.5 4.8 3.4
Litigation settlement gains, losses and expenses [e] (0.1 ) 0.9 1.7
3.0 Deferred executive compensation [f] 0.6 0.1 0.6 0.1 Merger
termination fee [g] - - (88.5 ) - Interest expense on
seller-financed debt [h] 0.1 0.3 1.1 1.3 Tax adjustments [i] 4.2
29.0 35.4 80.0 Non-GAAP net income $
277.6 $ 296.1 $ 1,069.2 $ 1,027.9
Three Months Ended Year Ended Sept. 30, Oct.
2, Sept. 30, Oct. 2, 2016 2015 2016 2015 GAAP net income per
share, diluted $ 1.31 $ 1.18 $ 5.18 $ 4.10 Share-based compensation
expense [a] 0.11 0.13 0.41 0.51 Acquisition-related expenses [b] -
0.01 0.04 0.04 Amortization of intangibles [c] 0.03 0.04 0.17 0.17
Restructuring and other (income) charges [d] - - 0.02 0.02
Litigation settlement gains, losses and expenses [e] - 0.01 0.01
0.01 Deferred executive compensation [f] - - 0.01 - Merger
termination fee [g] - - (0.46 ) - Interest expense on
seller-financed debt [h] - - 0.01 0.01 Tax adjustments [i] 0.02
0.15 0.18 0.41 Non-GAAP net income per
share, diluted $ 1.47 $ 1.52 $ 5.57 $ 5.27
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
Reconciliations of Non-GAAP Financial Measures" table found above,
we derive such non-GAAP financial measures by excluding
certain expenses 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 ongoing business by eliminating certain non-recurring
expenses 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 forecasts.
We provide investors with non-GAAP gross profit and gross
margin, non-GAAP operating income and operating margin, non-GAAP
net income and non-GAAP diluted earnings per share 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, amortization of intangibles,
restructuring-related charges, litigation settlement gains, losses
and expenses, certain deferred executive compensation, merger
termination fees, interest expense on seller-financed debt 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
reporting transparency 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, amortization of intangibles,
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,
amortization of intangibles, restructuring-related charges,
litigation settlement gains, losses and expenses, certain deferred
executive compensation, merger termination fees, interest expense
on seller-financed debt and certain tax items. 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, deemed compensation expenses and interest
expense on seller-financed debt, 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 litigation has been 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.
Merger Termination Fees - because we believe such non-recurring
fees have no direct correlation to our business operations or
performance during the period in which they are received or for any
future period.
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 first quarter of our
2017 fiscal year ("Q1 2017"). We provide this non-GAAP measure to
investors on a prospective basis for the same reasons (set forth
above) that we provide it to investors on a historical basis. We
are unable to provide a reconciliation of our forward-looking
estimate of Q1 2017 GAAP diluted earnings per share to a
forward-looking estimate of Q1 2017 non-GAAP diluted earnings per
share because certain information needed to make a reasonable
forward-looking estimate of GAAP diluted earnings per share for Q1
2017 (other than estimated share-based compensation expense of
$0.11 to $0.13 per diluted share, certain tax items of $0.04 to
$0.10 per diluted share and estimated amortization of intangibles
of $0.03 to $0.06 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 the 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.
For the three months ended September 30,
2016, approximately $1.9 million, $8.3 million and $9.5 million
were included in cost of goods sold, research and development
expense and selling, general and administrative expense,
respectively.
For the fiscal year ended September 30,
2016, approximately $11.3 million, $32.2 million and $34.5 million
were included in cost of goods sold, research and development
expense and selling, general and administrative expense,
respectively.
For the three months ended October 2,
2015, approximately $3.9 million, $11.6 million and $10.0 million
were included in cost of goods sold, research and development
expense and selling, general and administrative expense,
respectively.
For the fiscal year ended October 2, 2015,
approximately $14.5 million, $45.5 million and $39.9 million were
included in cost of goods sold, research and development expense
and selling, general and administrative expense, respectively.
[b]
The acquisition-related expenses
recognized during the three months and fiscal year ended September
30, 2016, include a $0.4 million credit and a $1.4 million charge,
respectively, to cost of goods sold related to the sale of acquired
inventory and $0.7 million and $6.1 million, respectively, in
general and administrative expenses primarily associated with
acquisitions completed or contemplated during the periods.
The acquisition-related expenses
recognized during the fiscal year ended October 2, 2015, include a
$0.2 million charge to cost of goods sold related to the sale of
acquired inventory. The acquisition-related expenses recognized
during the three months and fiscal year ended October 2, 2015,
include $2.3 million and $8.2 million, respectively, in general and
administrative expenses primarily associated with acquisitions
completed or contemplated during the periods.
[c]
During the three months and fiscal year
ended September 30, 2016, the Company incurred $6.4 million and
$33.4 million, respectively, in amortization of intangibles.
During the three months and fiscal year
ended October 2, 2015, the Company incurred $8.3 million and $33.5
million, respectively, in amortization of intangibles.
[d]
During the three months and fiscal year
ended September 30, 2016, the Company incurred a $0.4 million
credit and a $4.8 million charge, respectively, in employee
severance costs primarily related to restructuring plans that were
implemented during the periods.
During the three months and fiscal year
ended October 2, 2015, the Company incurred $0.5 million and $3.4
million, respectively, in employee severance costs primarily
related to restructuring plans that were implemented during the
periods.
[e]
During the three months and fiscal year
ended September 30, 2016, the Company recognized a $0.1 million
credit and $1.7 million charge, respectively, primarily related to
general and administrative expenses associated with ongoing
litigation(s).
During the three months and fiscal year
ended October 2, 2015, the Company recognized a $0.9 million and a
$3.0 million charge, respectively, primarily related to general and
administrative expenses associated with ongoing litigation(s).
[f]
During the three months and fiscal year
ended September 30, 2016, the Company incurred $0.6 million in
deferred executive compensation expenses.
During the three months and fiscal year
ended October 2, 2015, the Company incurred $0.1 million in
deferred executive compensation expenses.
[g]
During the fiscal year ended September 30,
2016, PMC-Sierra, Inc. ("PMC"), notified the Company on November
23, 2015, that it had terminated the Amended and Restated Agreement
and Plan of Merger entered into between the parties in order to
accept a superior acquisition proposal. As a result, on November
24, 2015, PMC paid the Company a $88.5 million merger termination
fee.
[h]
During the three months and fiscal year
ended September 30, 2016, the Company recognized $0.1 million and
$1.1 million, respectively, in interest expense associated with the
accretion of the present value of the $76.5 million liability
related to the future purchase of the remaining 34% interest in the
joint venture between the Company and Panasonic. The Company
acquired the remaining 34% interest from Panasonic on August 1,
2016.
During the three months and fiscal year
ended October 2, 2015, the Company recognized $0.3 million and $1.3
million, respectively, in interest expense associated with the
accretion of the present value of the $76.5 million liability
related to the future purchase of the remaining 34% interest in the
joint venture between the Company and Panasonic.
[i]
During the three months and fiscal year
ended September 30, 2016, these amounts primarily represent the use
of net operating loss and research and development tax credit
carryforwards, deferred tax expense not affecting taxes payable,
tax deductible share-based compensation expense in excess of GAAP
share-based compensation expense, the tax attributable to the
merger termination fee, the release of previously reserved items
that are no longer required as a result of the IRS audits, and
non-cash expense (benefit) related to uncertain tax positions.
During the three months and fiscal year
ended October 2, 2015, these amounts primarily represent the use of
net operating loss and research and development tax credit
carryforwards, deferred tax expense not affecting taxes payable,
tax deductible share-based compensation expense in excess of GAAP
share-based compensation expense and non-cash expense (benefit)
related to uncertain tax positions.
SKYWORKS SOLUTIONS, INC. UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS Sept. 30, Oct. 2,
(in millions)
2016 2015
Assets Current assets: Cash and cash equivalents $
1,083.8 $ 1,043.6 Accounts receivable, net 416.6 538.0 Inventory
424.0 267.9 Other current assets 77.7 65.2 Property, plant and
equipment, net 806.3 826.4 Goodwill and intangible assets, net
940.3 901.7 Other assets 106.7 76.6 Total assets $ 3,855.4 $
3,719.4
Liabilities and Equity Current liabilities:
Accounts payable $ 110.4 $ 291.1 Accrued and other current
liabilities 99.8 172.8 Other long-term liabilities 103.8 96.3
Stockholders' equity 3,541.4 3,159.2 Total liabilities and equity $
3,855.4 $ 3,719.4
SKYWORKS SOLUTIONS, INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended Year Ended
Sept. 30, Oct. 2, Sept. 30, Oct. 2, 2016 2015 2016 2015 (in
millions) Cash flow from operating activities Net income $ 246.8 $
229.2 $ 995.2 $ 798.3 Adjustments to reconcile net income to net
cash provided by operating activities: Share-based compensation
19.7 25.5 78.0 99.8 Depreciation 54.8 45.9 214.4 162.3 Amortization
of intangible assets 6.4 8.3 33.4 33.5 Contribution of common
shares to savings and retirement plans 6.7 7.8 18.0 20.9 Deferred
income taxes (1.5 ) 0.8 - (3.9 ) Excess tax benefit from
share-based compensation 1.4 (7.1 ) (43.7 ) (57.3 ) Other 0.1 (0.4
) 0.3 0.5 Changes in operating assets: Receivables, net 153.4
(158.1 ) 121.4 (222.2 ) Inventory 13.4 4.6 (147.3 ) 3.6 Other
current and long-term assets (13.2 ) (21.2 ) (20.4 ) (39.2 )
Accounts payable (71.3 ) 63.1 (181.5 ) 90.5 Other current and
long-term liabilities 38.3 34.3 27.9 106.0
Net cash provided by operations 455.0 232.7
1,095.7 992.8 Cash flow from investing activities
Capital expenditures (15.7 ) (150.8 ) (189.3 ) (430.1 )
Acquisitions, net of cash acquired (0.6 ) (0.4 ) (55.6 ) (24.6 )
Purchased intangibles (5.5 ) - (6.0 ) - Net cash used
in investing activities (21.8 ) (151.2 ) (250.9 ) (454.7 ) Cash
flow from financing activities Payment for obligations associated
with business combinations (76.5 ) - (76.5 ) - Excess tax benefit
from share-based payments (1.4 ) 7.1 43.7 57.3 Dividends paid (52.2
) (49.3 ) (201.0 ) (123.1 ) Repurchase of common stock — share
repurchase program (198.6 ) (111.0 ) (525.6 ) (237.3 ) Repurchase
of common stock - payroll tax withholdings on equity awards (0.4 )
(0.8 ) (73.3 ) (54.2 ) Proceeds from exercise of stock options 6.0
10.1 28.1 57.0 Net cash used in
financing activities (323.1 ) (143.9 ) (804.6 ) (300.3 ) Net
increase (decrease) in cash and cash equivalents 110.1 (62.4 ) 40.2
237.8 Cash and cash equivalents at beginning of period 973.7
1,106.0 1,043.6 805.8 Cash and cash
equivalents at end of period $ 1,083.8 $ 1,043.6 $
1,083.8 $ 1,043.6
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Skyworks Solutions, Inc.Media Relations:Pilar Barrigas,
949-231-3061orInvestor Relations:Mitch Haws,
949-231-3223
Skyworks Solutions (NASDAQ:SWKS)
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