Corporate Overview June 2025 Safe Harbor Statement Please note that the attached presentation includes forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include projections and information relating to future events, prospects, expectations and results of Skyworks (e.g., certain projections and business trends, as well as plans for dividend payments). We caution you that actual results may differ materially and adversely from those ...

Core Viewpoint - Skyworks has significantly increased its presence in the chip spot market over the past two years, driven by rising demand in various sectors, including drones, and has seen a notable increase in prices for certain models [3][16]. Group 1: Company Overview - Skyworks is a non-typical analog chip manufacturer specializing in radio frequency (RF) chips, particularly in the RF front-end (RFFE) segment, which plays a crucial role in wireless communication modules [5][6]. - The global RF front-end market is dominated by major players, with Skyworks holding a 15% market share, alongside Broadcom, Qualcomm, Qorvo, and Murata, which collectively account for about 80% of the market [7][10]. Group 2: Market Position and Performance - Skyworks leads the power amplifier (PA) market with a 43% share, while also holding a 22.6% share in the RF switch market and 10% in the SAW filter market [10][11]. - The RF front-end components, particularly filters and power amplifiers, are projected to grow significantly, with expected market sizes of $2.1 billion and $1.4 billion by 2026, respectively [12]. Group 3: Business Segments and Revenue - Skyworks' revenue is primarily derived from two business segments: mobile business (60-67% of revenue) and broad markets (including IoT, automotive, and industrial applications) [14]. - The company has seen its revenue grow from approximately $800 million in 2009 to over $5 billion in recent years, with a peak of $5.486 billion in fiscal year 2022 [18][20]. Group 4: Challenges and Risks - Skyworks faces challenges due to its heavy reliance on mobile business, particularly on Apple, which contributes significantly to its revenue. A recent shift in Apple's sourcing strategy is expected to reduce Skyworks' demand by 20-25% [21][23]. - The company has experienced a shift in revenue sources, with the U.S. market's share increasing from over 50% in 2018 to 77% in 2024, while its reliance on the Chinese market has decreased [25]. Group 5: Future Outlook - Skyworks is actively diversifying its business to reduce dependence on the smartphone market, with broad markets revenue increasing from about 30% in fiscal year 2021 to over 35% in fiscal year 2024 [26]. - Despite facing challenges, Skyworks maintains a strong cash flow, with free cash flow exceeding $1.6 billion for two consecutive years, supporting ongoing R&D and product development [31].

Group 1 - The company "Chip Superman" has a 1,600 square meter intelligent warehouse for chips, with over 1,000 stock models and around 100 brands, totaling 50 million chips with a stock value exceeding 100 million [1] - The company operates an independent laboratory in Shenzhen, ensuring quality control (QC) for each material [1] - The company has served a total of 19,200 users and can complete transactions in as fast as half a day [4] Group 2 - The company is actively seeking to purchase specific chip models, including TI's INA139NA/3K (50K units) and ON's NCP1096PAG (9K units) among others [2] - The company is also offering discounted sales on surplus materials, including TI's UCC28083DR (15K units) and NXP's PESD5V0S1BSF,315 (540K units) [3] - The company provides a platform for users to find unsold inventory and better pricing options through its mini-program and website [5][6]

Core Viewpoint - Skyworks Solutions Inc. is experiencing a decline in stock value, down 16% in 2025, primarily due to its heavy reliance on Apple Inc. for revenue and a slowdown in smartphone upgrades [1][2]. Financial Performance - Analysts project a 22% decrease in earnings per share (EPS) over the next 12 months, with a forward P/E ratio of approximately 20x, indicating the stock may be overvalued with a PEG ratio of 1.8x [3]. - Despite the current downturn, there has been an 8% rally in the stock over the last three months, suggesting potential investor optimism [3]. Market Opportunities - The shift of AI capabilities to edge devices presents a significant growth opportunity for Skyworks, as its products are essential for connectivity in various devices, including smartphones and IoT products [4][6]. - A potential decrease in interest rates by the Federal Reserve could stimulate a refresh cycle for smartphones, benefiting Skyworks due to its contracts with major smartphone manufacturers [7]. Growth Projections - Analysts foresee EPS growth increasing from $9.75 to $11.25, a rise of about 15%, with some predicting a 22% growth over the next three to five years [8]. - If these projections materialize, the stock could rebound to around $110, resulting in a forward P/E of roughly 11x and a PEG ratio of about 0.5, indicating undervaluation relative to growth [9]. Dividend and Capital Return - Skyworks offers a dividend yield of 3.75%, with an annual dividend of $2.80 and a history of increasing dividends for 11 consecutive years [10][11]. - The company has returned over $3 billion in capital to shareholders through dividends and share repurchases over the last five years, reflecting strong free cash flow margins of around 25% [10][11].

Core Viewpoint - The current spot market for chips has cooled down compared to last month, with many previously hot models experiencing a decline in demand and prices. However, there remains active demand for storage and analog chips from various brands, presenting market opportunities [3]. Group 1: Upcoming Product Changes - The eMMC chip KLM4G1FETE-B041 is set to be discontinued, with its price rising from approximately 15 yuan to around 30 yuan since May. The last order date is June 30, 2025, and the final shipment date is March 31, 2026 [6][4]. Group 2: Price Trends of Key Components - The LTM4644IY / LTM4644IYPBF voltage regulator has seen a significant drop in demand, with prices falling from 450 yuan in April to about 360 yuan currently [11][10]. - The STM32F103C8T6 MCU remains popular but has experienced a price decline from around 5.5 yuan in April to between 4 and 4.5 yuan this month [14][15]. - The MP9943GQ-Z chip has seen increased demand, with prices rising to approximately 3.5 yuan, surpassing last year's levels [20][19]. - The DDR4 chip H9HCNNNBKMMLXR-NEE has seen a price increase from around 30 yuan to approximately 45 yuan, attributed to reduced production from suppliers [24][23]. - The SE5004L-R RF amplifier has experienced a price surge from about 15 yuan to around 50 yuan, with some quotes exceeding 60 yuan due to high demand and limited supply [26][25]. - The ADL5561ACPZ-R7 amplifier has seen a price decrease from over 60 yuan at the beginning of the year to around 50 yuan [28][27].

Group 1 - Skyworks (NASDAQ: SWKS) is recognized as one of the best dividend growth stocks, attracting investors seeking safety during uncertain times [1] - The author has over two decades of experience in the market, particularly in the technology sector, focusing on risk mitigation through various market events [1] Group 2 - The article emphasizes the importance of momentum in investment strategies, particularly in the context of the current market landscape [1]

Core Insights - Skyworks Solutions (SWKS) has faced a decline in significant business from its largest customer, Apple (AAPL), over the past few years [1] Group 1 - The erosion of major wins for Skyworks Solutions is highlighted, particularly in relation to its dealings with Apple [1] - Analysts have noted the impact of Broadcom on Skyworks Solutions, indicating competitive pressures in the market [1]

Core Viewpoint - Skyworks Solutions (SWKS) reported a decline in earnings and revenues for Q2 fiscal 2025, with non-GAAP earnings of $1.24 per share, beating estimates but down 20% year-over-year, and revenues of $953.3 million, down 8.9% year-over-year but slightly above consensus [1][2]. Financial Performance - Non-GAAP gross margin increased by 160 basis points year-over-year to 46.7% [3] - Research & development expenses rose by 480 basis points year-over-year to 19.6% of revenues [3] - Selling, general and administrative expenses increased by 190 basis points to 9.2% [3] - Non-GAAP operating margin contracted by 340 basis points year-over-year to 23.3% [3] Balance Sheet & Cash Flow - As of March 28, 2025, cash and cash equivalents were $1.53 billion, down from $1.75 billion as of December 27, 2024 [4] - Long-term debt was $995.1 million, slightly up from $994 million as of December 27, 2024 [4] - Cash generated by operating activities was $409.5 million, compared to $377.2 million in the prior quarter [4] - Free cash flow was $371 million, with a free cash flow margin of 38.9% [4] Dividend Information - Skyworks paid dividends totaling $110.6 million in the reported quarter [5] Q3 FY25 Guidance - For Q3 fiscal 2025, Skyworks expects revenues between $920 million and $960 million, with non-GAAP earnings projected at $1.24 per share at the midpoint [6] - The Zacks Consensus Estimate for Q3 revenues is $951.26 million, indicating a year-over-year decline of 9.06% [6] Market Performance - Following the results, SWKS shares fell by 2.06% in pre-market trading and have underperformed the Zacks Computer & Technology sector year-to-date, with a decline of 25% compared to the sector's decline of 8.7% [2]

Core Viewpoint - Bragar Eagel & Squire, P.C. is investigating potential claims against Skyworks Solutions, Inc. due to a class action complaint alleging breaches of fiduciary duties by the board of directors during a specified class period [1] Group 1: Legal Investigation - A class action complaint was filed against Skyworks on March 3, 2025, with a class period from August 8, 2023, to February 5, 2025 [1] - The investigation focuses on whether the board of directors of Skyworks breached their fiduciary duties to the company [1] Group 2: Financial Performance - On February 5, 2025, Skyworks announced its financial results for Q1 of fiscal year 2025, providing lower-than-expected revenue guidance for Q2 [3] - The company attributed its disappointing results and guidance to an "intensified" competitive landscape [3] - Following the announcement, Skyworks' stock price plummeted from $87.08 per share to $65.60 per share, marking a decline of over 24% in one day [3] Group 3: Investor Communication - The law firm encourages long-term stockholders of Skyworks to reach out for more information regarding the claims or their rights [4]

Core Viewpoint - Skyworks Solutions reported quarterly earnings of $1.24 per share, exceeding the Zacks Consensus Estimate of $1.20 per share, but down from $1.55 per share a year ago, indicating a 20% year-over-year decline in earnings [1][2] Financial Performance - The company achieved revenues of $953.2 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 0.20%, but down from $1.05 billion in the same quarter last year, reflecting a decrease of approximately 9.5% [2] - Over the last four quarters, Skyworks has surpassed consensus EPS estimates three times and topped consensus revenue estimates four times [2] Stock Performance - Skyworks shares have declined about 25.6% since the beginning of the year, compared to a decline of 4.7% for the S&P 500 [3] Future Outlook - The company's earnings outlook is crucial for investors, with current consensus EPS estimates of $1.07 for the upcoming quarter and $4.76 for the current fiscal year, alongside expected revenues of $918.84 million and $3.81 billion respectively [7] - The estimate revisions trend for Skyworks is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6] Industry Context - The Semiconductors - Radio Frequency industry, to which Skyworks belongs, is currently ranked in the top 16% of over 250 Zacks industries, suggesting a favorable industry backdrop [8]