Skyworks(US:SWKS)2026-02-05 21:38Financial Performance - Net revenue for the three months ended January 2, 2026, was $1,035.4 million, a decrease of 3.5% compared to $1,068.5 million for the same period in 2024[10] - Gross profit for the same period was $427.2 million, down from $441.9 million, reflecting a gross margin of approximately 41.2%[10] - Operating income decreased to $103.8 million from $181.1 million, indicating a decline of 42.7% year-over-year[10] - Net income for the quarter was $79.2 million, a significant drop of 51.1% compared to $162.0 million in the prior year[10] - Basic earnings per share (EPS) was $0.53, down from $1.01, representing a decline of 47.5%[10] - Revenue from the United States was $805.7 million, down 4.8% from $846.7 million in the prior year[31] - Gross profit margin decreased to 41.3% for the three months ended January 2, 2026, down from 41.4% in the prior year[83] - Operating income fell to 10.0% of net revenue for the three months ended January 2, 2026, compared to 17.0% in the same period last year[83] - Net income margin decreased to 7.7% for the three months ended January 2, 2026, down from 15.2% for the same period in fiscal 2025[83] Cash and Liquidity - Cash and cash equivalents increased to $1,550.4 million from $1,161.3 million, showing a growth of 33.5%[15] - The company reported net cash provided by operating activities of $395.5 million, an increase from $377.2 million in the previous year[17] - Cash, cash equivalents, and marketable securities totaled $1,568.6 million as of January 2, 2026, an increase of $180.2 million from October 3, 2025[117] - The company expects cash, cash equivalents, and marketable securities, along with cash generated from operations, to be sufficient to fund short-term and long-term liquidity requirements[120] Assets and Liabilities - Total assets decreased slightly to $7,867.9 million from $7,917.0 million, a reduction of 0.6%[15] - Total liabilities decreased to $2,109.0 million from $2,159.9 million, reflecting a decline of 2.3%[15] - The Company’s total other current assets increased to $378.4 million as of January 2, 2026, compared to $350.0 million as of October 3, 2025[67] - The Company’s total other current liabilities rose to $457.6 million as of January 2, 2026, compared to $407.1 million as of October 3, 2025[67] Expenses - Research and development expenses increased to 19.6% of net revenue for the three months ended January 2, 2026, compared to 16.5% in the prior year[83] - Selling, general, and administrative expenses rose by 31.2% to $108.4 million, accounting for 10.5% of net revenue, compared to $82.6 million in the same period last year[103] - Restructuring, impairment, and other charges increased significantly by 612.5% to $11.4 million, representing 1.1% of net revenue, compared to $1.6 million in the prior year[106] - Share-based compensation expense totaled $57.7 million for the three months ended January 2, 2026, compared to $51.1 million for the same period in the previous year, representing an increase of approximately 13%[65] Taxation - The provision for income taxes for the three months ended January 2, 2026, was $30.5 million, with an effective tax rate of 27.8%[46] - The company recorded a provision for income taxes of $30.5 million for the three months ended January 2, 2026, reflecting a 7.4% increase from $28.4 million in the prior year[109] Stock and Dividends - The Company declared a cash dividend of $0.71 per share, payable on March 17, 2026, to stockholders of record as of February 24, 2026[63] - The Company has a stock repurchase program authorized for up to $2.0 billion, with approximately $1.2 billion remaining available as of January 2, 2026[60][61] - The company repurchased a total of 621,305 shares of common stock during the three months ended January 2, 2026, at an average price of $62.78 per share[137] - The company's net share repurchases are subject to a 1% excise tax under the Inflation Reduction Act, which reduces the amount available under the stock repurchase program[138] Mergers and Acquisitions - The Company has entered into a merger agreement with Qorvo, Inc., with a combined enterprise value of approximately $22.0 billion, expected to close early in calendar year 2027[68] - The Exchange Ratio in the Merger Agreement is set at 0.960 shares of Skyworks common stock and $32.50 in cash for each share of Qorvo common stock[86] - The company is involved in a merger agreement with Qorvo, Inc., and Comet Acquisition Corp., dated October 27, 2025[140] Internal Controls and Compliance - As of January 2, 2026, the company's disclosure controls and procedures were evaluated as effective at the reasonable assurance level by the CEO and CFO[132] - There were no changes to the internal control over financial reporting during the first quarter of fiscal 2026 that materially affected or are likely to materially affect the internal control over financial reporting[133] Market and Risk Factors - The company experienced a decrease in market share at a significant customer, partially offset by increased demand for Wi-Fi products[96] - The company has identified risk factors that could materially affect its business and financial condition, as discussed in the 2025 10-K report[136] - The company has not disclosed any new product or technology developments in the provided content[130] - There are no significant legal proceedings affecting the company as referenced in the financial statements[135]