Skyworks Solutions Inc. (NASDAQ:SWKS) Q1 2015 Earnings Conference Call - Final Transcript

Jan 22, 2015 • 05:00 pm ET

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Skyworks Solutions Inc. (NASDAQ:SWKS) Q1 2015 Earnings Conference Call - Final Transcript

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Presentation
Operator
operator

Good afternoon, and welcome to Skyworks Solutions First Quarter Fiscal Year 2015 Earnings Call. This call is being recorded. At this time, I will turn the call over to Stephen Ferranti, Senior Director of Investor Relations for Skyworks. Mr. Ferranti, please go ahead.

Executive
Stephen Ferranti

Thank you, Rochelle. Good afternoon everyone, and welcome to Skyworks' First Fiscal Quarter 2015 Conference Call. Joining me today are David Aldrich, Don Palette and Liam Griffin.

Dave will begin today's call with a business overview followed by Don's financial review and outlook. We'll then open the lines for your questions.

(Forward-Looking Cautionary Statements)

With that, I'll turn over the call to Dave for his comments on the quarter.

Executive
David Aldrich

Thanks Steve and welcome everyone. Well we are off to a great start to fiscal 2015 with first quarter revenue, profitability, and earnings all exceeding our guidance driven by strong demand across our served markets and increasing adoption of our integrated systems solutions.

We increased revenue by 59% year-over-year. We grew EPS by nearly 90% and we posted record cash flow as we continued to efficiently convert our strong earnings growth into cash returns. These financial results reflect our success in capitalizing on a number of powerful industry dynamics while expanding our addressable opportunities and enhancing our value add in the marketplace.

In particular we are benefiting from the proliferation of many forms of wireless data as more and more applications leverage the power of connectivity. Along with this we are seeing a dramatic increase in analog complexity driven by higher performance requirements and these market dynamics have created greater content opportunities, closer engagements with our customers, and higher value solutions across the board with a narrowing field of capable competitors.

Skyworks is uniquely positioned to capitalize in this environment by providing integrated RF and analog solutions which enable our customers to navigate increasingly more complex design challenges resulting in above market growth and superior financial returns for our shareholders. This is playing out across our served markets today as evidenced by our first quarter results.

Specifically during the quarter we delivered revenue of $806 million that's ahead of our guidance and up more than 59% year-over-year.

Executive
David Aldrich

59% year-over-year. We produced operating income of $282 million, that's roughly double that over a year ago translating into a 35% operating margin. We posted $1.26 in earnings per share that is up 88% versus a year ago.

We generated $383 million in cash flow from operations and we ended the quarter with over a billion dollars of cash on hand with no debt. Looking ahead we see our momentum continuing and while March is normally a seasonal slower quarter in the mobile industry, our broadening market footprint, our new product ramps, and an expanding solutions portfolio enable us to mitigate these seasonal patterns, a clear testament to our diversification.

Our Q1 design wins highlights some of these diverse opportunities. In mobile or more notable -- our more notable wins include diversity received modules in Smartphone platforms at several OEM customers including