Skyworks(SWKS) - 2024 Q3 - Quarterly Results

Revenue and Earnings - Revenue for Q3 FY24 was $906 million, with GAAP diluted EPS of $0.75 and non-GAAP diluted EPS of $1.21[1][2] - Q3 FY24 GAAP operating income was $130 million, while non-GAAP operating income was $219 million[2] - Skyworks expects Q4 FY24 revenue to be between $1.00 billion and $1.04 billion, with non-GAAP diluted EPS of $1.52 at the midpoint[5] - Gross profit for Q3 FY24 was $364.1 million, compared to $464.1 million in the same period last year[12] - GAAP gross profit for Q3 2024 was $364.1 million, down from $464.1 million in Q3 2023, with a gross margin of 40.2% compared to 43.3% in the prior year[13] - Non-GAAP gross profit for Q3 2024 was $416.1 million, down from $509.0 million in Q3 2023, with a gross margin of 46.0% compared to 47.5% in the prior year[13] - GAAP operating income for Q3 2024 was $130.4 million, down from $230.7 million in Q3 2023, with an operating margin of 14.4% compared to 21.5% in the prior year[13] - Non-GAAP operating income for Q3 2024 was $219.0 million, down from $326.6 million in Q3 2023, with an operating margin of 24.2% compared to 30.5% in the prior year[13] - GAAP net income for Q3 2024 was $120.9 million, down from $195.8 million in Q3 2023, with diluted earnings per share of $0.75 compared to $1.22 in the prior year[13] - Non-GAAP net income for Q3 2024 was $195.1 million, down from $276.3 million in Q3 2023, with diluted earnings per share of $1.21 compared to $1.73 in the prior year[13] - Net income for the three months ended June 28, 2024, was $120.9 million, compared to $195.8 million for the same period in 2023[25] Cash Flow and Financial Position - Year-to-date operating cash flow reached $1.35 billion with a 43% margin, and free cash flow was $1.27 billion with a 40% margin[1] - GAAP net cash provided by operating activities for Q3 2024 was $273.5 million, down from $305.7 million in Q3 2023, with a margin of 30.2% compared to 28.5% in the prior year[13] - Non-GAAP free cash flow for Q3 2024 was $249.1 million, down from $274.4 million in Q3 2023, with a margin of 27.5% compared to 25.6% in the prior year[13] - Cash, cash equivalents, and marketable securities increased to $1,283.9 million as of June 28, 2024, from $738.5 million as of September 29, 2023[24] - Net cash provided by operating activities for the three months ended June 28, 2024, was $273.5 million, compared to $305.7 million for the same period in 2023[25] - Capital expenditures for the three months ended June 28, 2024, were $24.4 million, compared to $31.3 million for the same period in 2023[25] - Repurchase of common stock under the stock repurchase program for the three months ended June 28, 2024, was $77.3 million[25] - Dividends paid for the three months ended June 28, 2024, were $109.1 million, compared to $98.7 million for the same period in 2023[25] - Net increase in cash and cash equivalents for the three months ended June 28, 2024, was $58.0 million, compared to a decrease of $111.0 million for the same period in 2023[25] - Cash and cash equivalents at the end of the period on June 28, 2024, were $1,263.4 million, compared to $721.6 million for the same period in 2023[25] Dividend and Shareholder Returns - Skyworks increased its quarterly dividend by 3% to $0.70 per share[1][6] - Dividends paid for the three months ended June 28, 2024, were $109.1 million, compared to $98.7 million for the same period in 2023[25] Business Performance and Outlook - The company anticipates a 20% sequential increase in mobile business for Q4 FY24[5] - Skyworks secured 5G content for premium Android smartphones, including Google Pixel 8a and Samsung Galaxy M[3] - The company supported the launch of Wi-Fi 7 tri-band routers and access points with NETGEAR, TP-Link, and Cambium Networks[3] - Skyworks accelerated its design win pipeline in automotive, focusing on telematics, infotainment, and CV2X[3] Non-GAAP Financial Measures - The company uses non-GAAP financial measures to evaluate operating performance, make decisions, and compare against peers, excluding items like share-based compensation and acquisition-related expenses[14][15] - Non-GAAP financial measures are calculated by excluding specific items from GAAP measures, such as share-based compensation, acquisition-related expenses, and restructuring charges[16][17][18][19] - Forward-looking estimate of Q4 2024 non-GAAP diluted earnings per share includes estimated share-based compensation expense of $0.25 to $0.35 per diluted share, estimated amortization of intangibles of $0.20 to $0.30 per diluted share, and certain tax items of -$0.05 to $0.10 per diluted share[21] - Total share-based compensation for the three months ended June 28, 2024, was $42.7 million, compared to $44.8 million for the same period in 2023[23]