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Skyworks (SWKS) Unveils Network Synchronization Solutions

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Skyworks Solutions (SWKS - Free Report) has launched its latest portfolio of network synchronization solutions, which includes the Si551x and Si540x products of NetSync clock integrated circuit devices and Skyworks’ AccuTime IEEE 1588 software.

The newly-launched products are designed to support mobile operators and equipment vendors for 5G fronthaul networks by providing accurate time synchronization. Precise time synchronization is highly essential to network operation, which is also paving the way for future enhancements, including Ultra-Reliable Low-Latency Communications (URLLC) and Coordinated Multipoint Access (CoMP). These enable 5G networking to back autonomous vehicles, factory automation, telemedicine and other emerging applications in the IoT, which are at the forefront of the fourth industrial revolution.

Si551X and SSi540x products help combine multiple clock and synchronization functions into a single device, which decreases power consumption and printed circuit board space.

Skyworks built its latest solutions by forming strategic partnerships with companies like NXP Semiconductors (NXPI - Free Report) and Advanced Micro Devices (AMD - Free Report) , which are helping SWKS provide 5G solutions for both the public and private wireless network markets.

NXPI is focused on building an ecosystem to support O-RAN 5G solutions, enabling customers to quickly bring products to the market. NXP combines the hardware capabilities of its Layerscape multicore processors and Layerscape Access programmable-based processors with ecosystem solutions like those provided by Skyworks to meet its operational demand.

AMD is leveraging Skyworks Si551x and Si540x products to be utilized in its’ system-on-a-chip (SoC) solutions. AMD is also using AccuTime software in its’ ARM processor subsystem, which allows customers to have an integrated synchronized solution to utilize 5G solutions accurately.

SWKS continues investing heavily in building solutions, which support the 5G networking megatrend and address all key network technologies from cellular to advanced WiFi, enhanced GPS and Bluetooth. This helps SWKS capitalize on organic growth and diversify Skywork’s revenue resources.

Skyworks Solutions Leverage Organic Growth to Drive Top Line

Skyworks is facing a challenging macroeconomic environment. Rising geo-political tensions between the United States and China, the global supply-chain challenges that adversely impacted the semiconductor industry, the ongoing Russia-Ukraine war, rising inflation and interest rate hikes by the U.S. Federal Reserve, made investors grow bearish on most stocks in the cyclical tech industry.

As a result, SWKS’ shares have slumped 35.8% compared with the Zacks Computer and Technology sector's decline of 28.3% in the year-to-date period.

Further strong competition from companies like Broadcom (AVGO - Free Report) in the wireless communications semiconductor industry and the analog market also remains a concern.

AVGO is benefiting from the world’s first complete end-to-end chipset solutions for the Wi-Fi 7 ecosystem. Also, in the semiconductor industry, IoT is creating newer avenues and is largely believed to be the next semiconductor growth opportunity with the potential for billions of connected devices. Broadcom is expected to take advantage of this as the first mover with its end-to-end chipset solutions.

However, SWKS currently carries Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Skyworks reported revenues of $1.23 billion for the third quarter of fiscal 2022, surpassing the Zacks Consensus Estimate by 0.13% and increasing 10.4% from the last fiscal year’s quarterly figure. SWKS’ quarterly results benefited from an increased rate of premium 5G deployment along with growth in automotive, data center and network infrastructure.

SWKS’ focus on multiple markets mitigates operating risks and lessens the exposure to volatility in any single market. Based on its expanding product portfolio, Skyworks is well-positioned to address the needs of rapidly-growing technologies like IoT and 5G.

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