Skyworks(SWKS)2025-05-07 21:00Financial Performance - Net revenue for the three months ended March 28, 2025, was $953.2 million, a decrease of 8.9% compared to $1,046.0 million for the same period in 2024[9]. - Gross profit for the six months ended March 28, 2025, was $833.5 million, down 10.0% from $926.8 million in the prior year[9]. - Operating income for the three months ended March 28, 2025, was $97.3 million, a decline of 48.6% compared to $189.2 million for the same period in 2024[9]. - Net income for the six months ended March 28, 2025, was $230.7 million, a decrease of 44.3% from $414.6 million in the prior year[12]. - Net income for the three months ended March 28, 2025, was $68.7 million, resulting in a basic earnings per share of $0.43[60]. - Net income for the six months ended March 28, 2025, was $231.3 million, compared to $183.3 million for the same period in 2024, representing a 26.2% increase[29]. Expenses - Research and development expenses increased to $186.5 million for the three months ended March 28, 2025, up 20.8% from $154.4 million in the same period last year[9]. - Total operating expenses increased to 30.9% of net revenue for the three months ended March 28, 2025, compared to 22.1% for the same period in 2024[66]. - Research and development expenses rose to 19.6% of net revenue for the three months ended March 28, 2025, compared to 14.8% for the same period in 2024[66]. - Selling, general, and administrative expenses rose by 14.6% to $88.0 million for the three months ended March 28, 2025, compared to $76.8 million in the prior year, representing 9.2% of net revenue[75]. - The provision for income taxes for the three months ended March 28, 2025, was $33.7 million, significantly higher than $9.6 million for the same period in 2024[9]. - The provision for income taxes increased by 251.0% to $33.7 million for the three months ended March 28, 2025, compared to $9.6 million in the same period last year[81]. Cash and Liquidity - Cash and cash equivalents at the end of the period were $1,387.8 million, an increase from $1,368.6 million at the beginning of the period[16]. - Liquidity, including cash, cash equivalents, and marketable securities, totaled $1,527.7 million as of March 28, 2025, a decrease of $46.4 million from September 27, 2024[89]. - Cash provided by operating activities decreased by $288.6 million to $786.6 million for the six months ended March 28, 2025, compared to $1,075.2 million in the prior year[85]. - The investment portfolio totals approximately $1,387.8 million, with cash and cash equivalents including money market funds, corporate bonds, and U.S. Treasury securities[95]. - The company anticipates that cash generated from operations and available credit will be sufficient to meet short-term and long-term liquidity requirements[91]. Stock Repurchase and Dividends - The company repurchased $500.0 million of common stock under its stock repurchase program during the six months ended March 28, 2025[16]. - The company repurchased common stock amounting to $504.3 million during the three months ended March 28, 2025[29]. - The company declared dividends totaling $112.5 million for the three months ended March 28, 2025, compared to $108.9 million for the same period in 2024, reflecting a 1.7% increase[29]. - A cash dividend of $0.70 per share was declared on May 7, 2025, payable on June 17, 2025, totaling $223.1 million for the fiscal year ended October 3, 2025[57][58]. - The total approximate dollar value of shares that may yet be purchased under the stock repurchase program is $1.5 billion as of March 28, 2025[113]. - The company has a new stock repurchase program approved on February 4, 2025, authorizing the repurchase of up to $2.0 billion of common stock, which will expire on February 3, 2027[113]. Assets and Liabilities - Total assets decreased to $7,885.7 million as of March 28, 2025, down from $8,283.3 million as of September 27, 2024[14]. - Long-term debt remained stable at $995.1 million as of March 28, 2025, compared to $994.3 million as of September 27, 2024[14]. - The carrying amount of total debt under Senior Notes was $995.1 million as of March 28, 2025, compared to $913.7 million as of September 27, 2024, indicating an increase of approximately 8.9%[35]. - Total inventory decreased to $678.3 million as of March 28, 2025, from $784.8 million as of September 27, 2024, representing a reduction of approximately 13.5%[37]. - Total property, plant, and equipment, net was $1,231.7 million as of March 28, 2025, down from $1,280.3 million as of September 27, 2024[38]. Market and Economic Conditions - Revenue from the United States for the six months ended March 28, 2025, was $1,571.0 million, down from $1,764.3 million in the same period of 2024, a decline of 10.9%[29]. - The company derives significant revenues from international customers, primarily in the Asia-Pacific region and Europe[106]. - Recent tariffs announced by the U.S. in April 2025 could negatively impact trade and operating costs[106]. - The company faces risks related to doing business in China, including evolving laws and potential tariffs[109]. - Geopolitical changes in China-Taiwan relations could disrupt operations and negatively affect the semiconductor industry[109]. Legal and Compliance Risks - The company faces potential litigation risks related to warranty claims and product defects, which could adversely affect its operating results and reputation[111]. - The company has been named in a putative class action lawsuit alleging violations of federal securities laws, which could result in significant defense costs and damages[111]. - The company may face challenges in fulfilling contractual obligations, which could lead to lawsuits from customers or third parties[111]. - Investigating product defects may divert resources from other product development efforts, potentially impacting future growth[111]. Accounting and Reporting - The company is currently evaluating the impact of recently issued accounting standards on its consolidated financial statements and related disclosures[25]. - The company has not recorded any liability for indemnities related to product sales and does not expect these obligations to materially impact its financial statements[51]. - The company is subject to a 1% excise tax on net share repurchases under the Inflation Reduction Act, impacting the amount available under the repurchase program[114].