Chipmaker Skyworks forecasts strong third-quarter results

Reuters News
Posted: Apr 22, 2014 4:57 PM

(Reuters) - Chipmaker Skyworks Solutions Inc's second-quarter results and current-quarter forecast beat Wall Street estimates, helped by strong sales of chips used to connect machines to the Internet.

Shares of the company, whose radio frequency analog chips connect electronic devices to a network, rose 9 percent in extended trading on Tuesday.

Machine-to-machine connectivity, more commonly known as the "Internet of Things", allows machines on both wired and wireless networks to interact with one other, with its uses ranging from detecting oil drill sites to medical personnel tracking patients' health.

Skyworks is "set to substantially outpace the broader semiconductor industry as we capitalize on increasing analog system complexity driven by the Internet of Things," Skyworks Chief Executive David Aldrich said in a statement.

Skyworks, whose chips are used in e-book readers and LED lighting, forecast current-quarter adjusted earnings of 73 cents per share on a 23 percent rise in revenue to $535 million.

Analysts on average were expecting earnings of 63 cents per share on revenue of $488.2 million, according to Thomson Reuters I/B/E/S.

The company's chips connect smartphones and tablets to a network and its top customers include Samsung Electronics Co Ltd and Apple Inc's largest contract manufacturer Foxconn Technology Group.

Skyworks' net income rose to $76.9 million, or 40 cents per share, in the second quarter ended March 28, from $61.7 million, or 32 cents per share, a year earlier.

Excluding one-time items, profit was 62 cents per share, above the average analyst estimate of 59 cents.

Revenue rose 13 percent to $481.0 million, also beating analysts' average estimate of $470.2 million.

Skyworks shares were up 9 percent at $41.50 in trading after the bell. They closed at $37.02 in regular trading on the Nasdaq.

(Reporting By Aurindom Mukherjee in Bangalore; Editing by Savio D'Souza)