Skyworks Reports Record Q4 FY14 Results

November 6, 2014

Delivers Revenue of $718M, up 51% Y-o-Y and 22% Sequentially Expands Non-GAAP Operating Margin to 32.8% (27.6% GAAP) Posts $1.12 of Non-GAAP diluted EPS ($0.90 GAAP) Increases Dividend Payment by 18% to $0.13 Per Share Guides to $770M in Revenue, $1.18 of Non-GAAP Diluted EPS in Q1 FY15

WOBURN, Mass.--(BUSINESS WIRE)-- Skyworks Solutions, Inc. (NASDAQ: SWKS) an innovator of high performance analog semiconductors enabling a broad range of end markets, today reported fourth fiscal quarter and year-end results for the period ending October 3, 2014. Revenue for the fourth fiscal quarter was $718.2 million, up 51 percent year-over-year and 22 percent sequentially, consistent with the updated outlook provided on October 14, 2014 and exceeding the Company's original guidance midpoint of $680 million.

On a non-GAAP basis, operating income for the fourth fiscal quarter of 2014 was $235.7 million, up 81 percent from $130.3 million in the fourth fiscal quarter of 2013. Non-GAAP diluted earnings per share for the fourth fiscal quarter of 2014 was $1.12, including a $0.03 fiscal year-end tax benefit, compared to $0.64 for the prior year fourth fiscal quarter. On a GAAP basis, operating income for the fourth fiscal quarter of 2014 was $198.1 million and diluted earnings per share was $0.90.

For fiscal year 2014, revenue was $2.3 billion, up 28 percent from fiscal 2013, while non-GAAP diluted earnings per share was $3.24, up 47 percent year-over-year. GAAP diluted earnings per share for fiscal 2014 was $2.38.

"Skyworks is aggressively executing on our strategy to deliver sustainable, above market growth with diversified analog semiconductor returns," said David J. Aldrich, chairman and chief executive officer of Skyworks. "Our advanced solutions are at the heart of mobile connectivity and the Internet of Things, and are empowering exciting new applications spanning mobile payments, to streaming music services, to on-demand media. Given our accelerating design win momentum and deep product pipeline, we have never been better positioned to grow demonstrably faster than our addressable markets and in turn, to deliver best-in-class financial returns."

Q4 Business Highlights

Ramped high performance analog control ICs at GoPro® for action video cameras Commenced volume production of custom 4G/LTE modules leveraging proprietary TC-SAW filter technology Introduced low power Bluetooth solutions for Tile, Inc. item location applications Unveiled revolutionary diversity receive modules for LTE smartphones Delivered switching and connectivity modules for Xiaomi's Mi3 platform Expanded wearable designs, including 3 new Smartwatch programs Enabled ZigBee®-based thermostat and lighting platforms at GE and iControl Supported Rockwell Collins with GPS applications supporting avionics Captured short range communications sockets at General Motors for collision avoidance systems Powered Netgear's 9-stream routers with 802.11ac solutions

Dividend Increase

Skyworks' Board of Directors has declared a cash dividend of $0.13 per share of the Company's common stock, an 18% increase over the dividend for the prior quarter. The dividend is payable on December 11, 2014 to stockholders of record at the close of business on November 18, 2014.

First Fiscal Quarter 2015 Outlook

"Fiscal 2014 was a record year for Skyworks as we exceeded key metrics in each and every quarter and crossed the $2 billion revenue threshold," said Donald W. Palette, vice president and chief financial officer of Skyworks. "Based on broad customer demand and crisp operational execution, we are now scaling to more than a $3 billion revenue run-rate with annualized non-GAAP earnings per share approaching $5.00. Specifically, for the first fiscal quarter of 2015, we anticipate revenue to be up 52 percent year-over-year to $770 million with further margin expansion yielding $1.18 of non-GAAP diluted earnings per share."

For further information regarding use of non-GAAP measures in this press release, please refer to the Discussion Regarding the Use of Non-GAAP Financial Measures set forth below.

Skyworks' Fourth Fiscal Quarter 2014 Conference Call

Skyworks will host a conference call with analysts to discuss its fourth fiscal quarter 2014 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' Web site. To listen to the conference call via telephone, please call 800-230-1074 (domestic) or 612-234-9960 (international), confirmation code: 339332.

Playback of the conference call will begin at 9:00 p.m. Eastern time on November 6 and end at 9:00 p.m. Eastern time on November 13. The replay will be available on Skyworks' Web site or by calling 800-475-6701 (domestic) or 320-365-3844 (international), access code: 339332.

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, filters, 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.

Posted November 11, 2014