Skyworks Solutions, Inc. (NASDAQ:SWKS) Q1 2024 Results Conference Call January 30, 2024 4:30 PM ET Company Participants Raji Gill - Vice President, Investor Relations Liam Griffin - CEO, President & Chairman of the Board Kris Sennesael - Senior VP & CFO Conference Call Participants Matt Ramsay - Cowen and Company Chris Caso - Wolfe Research Christopher Rolland - Susquehanna Edward Snyder - Charter Equity Research Gary Mobley - Wells Fargo Karl Ackerman - BNP Paribas Blake Friedman - Bank of America Securiti ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q For the transition period from __________to__________ Commission file number 001-05560 Skyworks Solutions, Inc. (Exact name of registrant as specified in its charter) Delaware 04-2302115 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 29, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________ Commission file number 001-05560 Skyworks Solutions, Inc. (Exact name of registrant as specified in its charter) Delaware 04-2302115 (State or other j ...

Financial Data and Key Metrics Changes - Skyworks reported revenue of $1,219 million for Q4 2023, a 14% increase sequentially and slightly above the midpoint of their outlook [12] - Earnings per share (EPS) for the quarter was $2.20, exceeding guidance by $0.10 [13] - Operating cash flow for the quarter was $366 million, with free cash flow for the fiscal year exceeding $1.6 billion, reflecting a robust business model [5][14] Business Line Data and Key Metrics Changes - Mobile business accounted for approximately 65% of total revenue, increasing by 25% sequentially, driven by new high-performance solutions [12] - Broad markets represented about 35% of total revenue, down 3% sequentially due to inventory digestion [12][13] Market Data and Key Metrics Changes - The Android market is showing modest improvement in excess supply conditions, but Skyworks continues to under ship to natural demand as the industry rebalances [6] - Demand in broad markets is softer, particularly in consumer and durable sectors, as customers adjust to normalize lead times and reduce excess inventory [6] Company Strategy and Development Direction - Skyworks is focusing on expanding RF content in mobile and broad markets, anticipating growth driven by trends such as 6G, IoT devices, and automotive electrification [7][8] - The company is strategically managing inventory levels and making investments in growth areas to diversify its business reach [6][9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about long-term trends in sectors like IoT, automotive, and AI, despite current macroeconomic headwinds [5][11] - The company expects revenue for Q1 of fiscal 2024 to be between $1,175 million and $1,225 million, with mobile business showing momentum while broad markets continue to digest excess inventory [16] Other Important Information - Skyworks reduced internal inventory by $116 million during Q4, aiming to bring it below $1 billion by the end of December [13] - The company paid $108 million in dividends and repaid $200 million of its term loan, maintaining a strong capital structure [15] Q&A Session Summary Question: Guidance for December quarter and details on mobile and broad markets - Management expects mobile business to increase sequentially while broad markets will continue to see declines due to inventory digestion [18] Question: Inventory correction status in mobile and broad markets - Management indicated that mobile has clear opportunities, while broad markets are experiencing inventory issues that are being addressed [20] Question: Opportunities in the Android market and impact of Huawei - Management sees growth potential in the Android market, particularly with the VOX ecosystem, and does not view Huawei as a significant threat [22] Question: Thoughts on M&A given strong free cash flow - Management highlighted a clean balance sheet and strong free cash flow, providing optionality for both organic investments and potential acquisitions [24] Question: Performance in automotive and industrial markets - Management reported strong growth in automotive, leveraging past acquisitions, and sees significant opportunities in this sector [26] Question: Capital expenditures and operational efficiencies - Management noted a focus on operational efficiencies, expecting capital intensity to moderate in the coming years [29] Question: Content growth expectations - Management aims to continue growing content and diversifying technology offerings across various markets [31] Question: Seasonal trends in mobile revenue - Management confirmed that mobile revenue typically sees a 20%-25% decline in the March quarter [37] Question: Competitive landscape in the China smartphone market - Management acknowledged the complexity of the China market but expressed confidence in their positioning and design wins [50]

Financial Data and Key Metrics Changes - Skyworks reported revenue of $1.071 billion for Q3 2023, slightly above the midpoint of their outlook, with earnings per share of $1.73 and operating cash flow of $306 million [4][8] - Gross profit was $509 million, resulting in a gross margin of 47.5%, down 370 basis points year-over-year due to temporary factory underutilization [8][9] - Operating expenses were $182 million, a decline of 4% sequentially and year-over-year, leading to an operating income of $327 million and an operating margin of 30.5% [9] Business Line Data and Key Metrics Changes - Mobile accounted for approximately 59% of total revenue, with broad content gains offset by weakness in the Android ecosystem [8] - Broad markets contributed approximately 41% of total revenue, with strong contributions from automotive, infrastructure, and industrial markets [8][9] - Automotive revenue continued to grow double-digit year-over-year, with design wins in telematics applications [6][8] Market Data and Key Metrics Changes - The company secured 5G content for Android smartphones and supported Wi-Fi 7 launches for major customers [5][6] - The infrastructure and industrial segments showed growth, particularly in 5G small cell deployments and AI data center solutions [6][8] - Demand from China is starting to improve, although it remains below desired levels [25][45] Company Strategy and Development Direction - Skyworks is focused on advancing its technology roadmap and diversifying into high-growth markets, including automotive and IoT [5][6][13] - The company aims to leverage trends such as generative AI and the expansion of IoT to drive future growth [7][13] - A 10% increase in the quarterly dividend to $0.68 per share reflects confidence in long-term strategic outlook and cash generation [12] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the financial outlook, expecting double-digit sequential revenue and earnings growth in Q4 2023 [10][11] - The company anticipates gross margins to remain in the range of 47% to 48% due to cyclical impacts and inventory reduction efforts [11][19] - Management noted that the inventory correction cycle is nearing its end, with expectations for improved financials moving forward [23][24] Other Important Information - Skyworks generated record free cash flow of $1.350 billion for the first three quarters of the fiscal year, with a free cash flow margin of 38% [9] - The company repaid $500 million of its 2023 notes at maturity during Q3 [9] Q&A Session Summary Question: Content of new phone from largest customer - Management indicated they expect to maintain a strong position with their largest customer but could not provide specific details [15][16] Question: Drivers for improving gross margins - Management noted that gross margins are affected by macro headwinds and inventory levels, with expectations for gradual improvement over time [17][19] Question: Status of inventory correction - Management believes the bottom has been reached for most markets, with expectations for improving financials moving forward [22][23] Question: Demand from China customers - Demand from China is starting to improve, but it is still bumpy; management remains cautious but optimistic [24][25] Question: Breakdown of broad markets business - Automotive is a significant growth area, with expectations for substantial acceleration; other markets like cloud and Wi-Fi are also performing well [28][29] Question: Long-term view on operating expenses - Management plans to continue investing in growth while focusing on efficiency to manage operating expenses [31][32] Question: Share in Wi-Fi and high-end handsets - Management expressed confidence in maintaining a strong position in Wi-Fi technologies, with ongoing consumer demand [36][37] Question: Long-term implications of Huawei's return - Management views Huawei as a non-factor currently, with opportunities in the broader China market still present [54][55] Question: Outlook for December quarter - Management expects December to show sequential growth, following normal seasonal patterns [57][58] Question: Impact of material bans from China - Management assessed that there is minimal risk from the ban on gallium and germanium exports, as they have experience with these materials [59][60] Question: Outlook for mobile vs. broad markets - September is expected to be strong for mobile, while broad markets may see slight declines due to inventory overhang [62][63]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________ Commission file number 001-05560 Skyworks Solutions, Inc. (Exact name of registrant as specified in its charter) Delaw ...

Skyworks Solutions, Inc. (NASDAQ:SWKS) Q2 2023 Earnings Conference Call May 8, 2023 10:00 AM ET Company Participants Mitch Haws - Investor Relations Liam Griffin - Chairman, Chief Executive Officer & President Kris Sennesael - Chief Financial Officer Conference Call Participants Ambrish Srivastava - BMO Capital Markets Blayne Curtis - Barclays Vivek Arya - Bank of America Karl Ackerman - BNP Paribas Gary Mobley - Wells Fargo Edward Snyder - Charter Equity Research Harsh Kumar - Piper Sandler Ruben Roy - Sti ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Skyworks Solutions, Inc. (Exact name of registrant as specified in its charter) Delaware 04-2302115 (State or other jurisdiction of incorporation or organization) (I.R.S. ...

Skyworks Solutions, Inc. (NASDAQ:SWKS) Q1 2023 Earnings Conference Call February 6, 2023 4:30 PM ET Company Participants Mitch Haws - Investor Relations Liam Griffin - Chairman, Chief Executive Officer & President Kris Sennesael - Chief Financial Officer Conference Call Participants Ambrish Srivastava - BMO Capital Markets Blayne Curtis - Barclays Gary Mobley - Wells Fargo Toshiya Hari - Goldman Sachs Matt Ramsay - Cowen and Company Edward Snyder - Charter Equity Research Chris Caso - Credit Suisse Karl ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________to__________ Commission file number 001-05560 Skyworks Solutions, Inc. (Exact name of registrant as specified in its charter) D ...