Skyworks(SWKS) - 2024 Q4 - Annual Results

Financial Performance - Skyworks reported Q4 revenue of $1.025 billion, representing a 13% sequential growth[2] - GAAP diluted EPS for Q4 was$ 0.37, while non-GAAP diluted EPS was $1.55[2] - Total operating income for Q4 was$ 59 million, down from $254 million in the same quarter last year[2] - GAAP operating income for the three months ended September 27, 2024, was$ 59.5 million, a decrease from $254.0 million for the same period in 2023[17] - Non-GAAP operating income for the three months ended September 27, 2024, was$ 273.5 million, down from $397.9 million year-over-year[17] - GAAP net income for the three months ended September 27, 2024, was$ 60.5 million, compared to $244.8 million in the same quarter of 2023[18] - Non-GAAP net income for the twelve months ended September 27, 2024, was$ 1,012.7 million, a decline from $1,366.7 million in the previous year[18] - Net income for the three months ended September 27, 2024, was$ 60.5 million, down 75.3% from $244.8 million in the same period last year[30] Cash Flow and Margins - Annual operating cash flow reached$ 1.825 billion, with a 44% operating cash flow margin, and free cash flow was $1.668 billion, reflecting a 40% free cash flow margin[1] - Non-GAAP free cash flow for the three months ended September 27, 2024, was$ 393.2 million, up from $295.6 million year-over-year[18] - GAAP net cash provided by operating activities for the three months ended September 27, 2024, was$ 476.0 million, compared to $365.7 million in the same period of 2023[18] - Net cash provided by operating activities increased to$ 476.0 million from $365.7 million year-over-year, a growth of 30.3%[30] Assets and Liabilities - Total assets decreased to$ 8,283.3 million from $8,426.7 million year-over-year, a decline of 1.7%[29] - Debt reduced to$ 994.3 million from $1,292.2 million, a decrease of 23.1%[29] - Stockholders' equity increased to$ 6,336.7 million from $6,082.7 million, a growth of 4.2%[29] Inventory and Capital Expenditures - Inventory decreased to$ 784.8 million from $1,119.7 million, a reduction of 29.9%[29] - Capital expenditures for the three months were$ 82.8 million, compared to $70.1 million in the prior year, an increase of 18.5%[30] Dividends and Shareholder Returns - The company declared a cash dividend of$ 0.70 per share, payable on December 24, 2024[7] - Dividends paid increased to $112.0 million from$ 108.4 million, a rise of 3.3%[30] Future Outlook - Skyworks expects Q1 2025 revenue to be between $1.05 billion and$ 1.08 billion, with non-GAAP diluted EPS projected at $1.57 at the midpoint[6] - The mobile business is anticipated to grow mid-single digits sequentially, driven by seasonal product ramps[6] - The company expects non-GAAP diluted earnings per share for Q1 2025 to be impacted by estimated share-based compensation expense of$ 0.20 to $0.40 per diluted share[27] Product Development and Market Position - Skyworks secured 5G content for premium Android smartphones, including Google Pixel 9 and Samsung Galaxy[4] - Skyworks expanded its Wi-Fi 7 design wins with major companies like Linksys and NETGEAR[4] - Skyworks is well-positioned to capitalize on the transformative smartphone upgrade cycle driven by AI[3] Operating Margins - GAAP operating margin for the three months ended September 27, 2024, was 5.8%, significantly lower than 20.8% in the same quarter of 2023[17] - Non-GAAP operating margin for the three months ended September 27, 2024, was 26.7%, down from 32.6% year-over-year[17] Share-Based Compensation - Share-based compensation expense for the three months ended September 27, 2024, was$ 38.2 million, compared to $49.9 million in the same period of 2023[18]