Skyworks(SWKS)2025-05-07 20:03Revenue and Earnings - Revenue for Q2 Fiscal 2025 was $953 million, a decrease from $1,046 million in Q2 Fiscal 2024, representing a decline of approximately 8.9% year-over-year[3][20] - GAAP diluted earnings per share (EPS) for the quarter were $0.43, down from $1.14 in the same quarter last year, while non-GAAP diluted EPS was $1.24[3][20] - GAAP net income for Q2 2025 was $68.7 million, significantly lower than $183.3 million in Q2 2024, a decrease of 62.5%[21] - Non-GAAP net income for Q2 2025 was $196.8 million, down from $250.7 million in Q2 2024, a reduction of 21.5%[21] - Non-GAAP diluted earnings per share for Q2 2025 was $1.24, compared to $1.55 in Q2 2024, a decrease of 20.0%[21] - GAAP operating income for Q2 2025 was $97.3 million, down from $189.2 million in Q2 2024, a decline of 48.6%[21] - Non-GAAP operating income for Q2 2025 was $222.2 million, compared to $279.1 million in Q2 2024, a decrease of 20.3%[21] Cash Flow and Assets - Operating cash flow for the quarter was $410 million, resulting in an operating cash flow margin of 43%, and free cash flow was $371 million, with a free cash flow margin of 39%[5] - GAAP net cash provided by operating activities for Q2 2025 was $409.5 million, an increase from $300.2 million in Q2 2024, up by 36.4%[21] - Non-GAAP free cash flow for Q2 2025 was $371.0 million, compared to $272.6 million in Q2 2024, an increase of 36.1%[21] - Cash and cash equivalents at the end of the period were $1,387.8 million, a decrease from $1,602.5 million at the beginning of the period, reflecting a net decrease of $214.7 million[35] - Total assets decreased from $8,283.3 million on September 27, 2024, to $7,885.7 million on March 28, 2025, representing a decline of approximately 4.8%[33] Shareholder Returns - The company returned over $600 million to shareholders through share repurchases and dividends, marking the highest quarterly return ever[4] - The board declared a cash dividend of $0.70 per share, payable on June 17, 2025, to stockholders of record on May 27, 2025[10] - Dividends paid increased slightly to $110.6 million for the three months ended March 28, 2025, compared to $109.1 million for the same period last year[35] - The company repurchased $500.0 million in common stock during the six months ended March 28, 2025[35] Research and Development - Research and development expenses increased to $186.5 million from $154.4 million year-over-year, reflecting a focus on innovation and product development[20] Market Performance and Expectations - For Q3 Fiscal 2025, revenue is expected to be between $920 million and $960 million, with non-GAAP diluted EPS projected at $1.24 at the mid-point of the revenue range[8] - The mobile business is anticipated to decline low single digits sequentially, consistent with typical seasonal patterns, while Broad Markets are expected to show sequential growth[9] - The company secured 5G design wins across premium Android smartphones, including flagship models from Samsung Galaxy, Google Pixel, and Oppo[9] - Key design wins were achieved for in-vehicle infotainment systems with major automotive OEMs, enhancing market presence in the automotive sector[9] Profitability Metrics - GAAP gross profit for Q2 2025 was $391.6 million, down from $420.3 million in Q2 2024, representing a decrease of 6.5%[21] - Non-GAAP gross profit for Q2 2025 was $444.7 million, compared to $470.9 million in Q2 2024, a decline of 5.5%[21] - Share-based compensation increased to $62.7 million for the three months ended March 28, 2025, compared to $46.0 million for the same period last year, an increase of approximately 36.5%[35] - Capital expenditures for the three months ended March 28, 2025, were $38.5 million, up from $27.6 million in the same period last year, an increase of approximately 39.8%[35] Accounts Receivable and Liabilities - The company reported a decrease in accounts receivable from $508.8 million on September 27, 2024, to $371.9 million on March 28, 2025, a decline of about 26.9%[33] - Total liabilities remained relatively stable at $1,985.4 million as of March 28, 2025, compared to $1,946.6 million on September 27, 2024[33]