Skyworks Misses By a Penny

Skyworks Solutions, Inc. (SWKS - Analyst Report) reported revenues of $402.3 million in the fourth quarter of fiscal 2011, up 28% year over year and up 13% sequentially, which surpassed management’s guidance of $400 million.

Skyworks recently saw more tentative order activity within certain segments of the Android smartphone market and the company saw signs of sluggishness in smart energy in North America wireless infrastructure.

Meanwhile, Skyworks continues to benefit from strong underlying demand in the mobile Internet market driven by market share gains and new product ramps. Broadband mobile subscriptions continue to grow in leaps and bounds.

The advent of cloud computing is expected to take the trend further with the ever-growing need for wireless connectivity. The products from Skyworks support all smartphone and tablet operating systems, including Android, Symbian, Windows Mobile and others.  

Skyworks posted a net income of $64.2 million or $0.34 per diluted share in the fourth quarter of fiscal 2011 compared to a net income of $51.5 million or $0.27 per diluted share in the previous quarter and a net income of $46.8 million or $0.25 per diluted share in the year-ago quarter.

Excluding acquisition-related charges but including stock-based compensation expense, Skyworks reported a net income of $0.45 per share, missing the Zacks Consensus Estimate by a penny.

Revenue for fiscal 2011 came in at $1.491 billion, up 32% from a year-ago. Net income jumped 65.0% year over year to $226.6 million. EPS came in at $1.19. Excluding one-time charges, net income came in at $1.58 per share.

Margins

Gross margin (excluding stock-based compensation expenses) came in at 44.7%, 43.4%, flat with the year-ago quarter, down from 44.9% in the previous quarter. Operating margin came in at 27.2%, up from 26.1% in the year-ago quarter but slightly down from 27.4% in the previous quarter. During the quarter, Skyworks generated $123 million of cash from operations and used $15.3 million in capital expenditures.

Skyworks repurchased approximately 500,000 shares in the fourth quarter. Skyworks exited the fourth quarter with cash and cash equivalents of $ 410.8 million, up from $310.357 million at the end of the p

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