Skyworks Solutions, Inc. (NASDAQ:SWKS) reported revenues of $245.1 million in the first quarter of fiscal 2010, up 17% year over year and surpassed management’s guidance range of $238 million – $242 million.
The top-line growth was driven by increasing demand for mobile Internet applications, increasingly diversified linear products and the rapid adoption of smart-grid technologies.
Gross margin came in at 42.2%, up 130 basis points sequentially driven by a richly diversified product mix, volume ramp of high-margin new products, continued factory process and productivity enhancements, product and end yield improvements and double-digit year over year material cost reductions.
Operating margin came in at 21.3% compared to 14.4% in the previous quarter. Earnings per share (EPS) came in at 27 cents easily, beating the Zacks Consensus Estimate of 21 cents. The reported EPS beat management’s guidance by 2 cents and was up from 17 cents reported in the first fiscal quarter of 2009.
Going forward, management expects revenues to grow 30% year over year to approximately $225 million, driven by broad-based strength and new applications. Gross margin is projected at 41% – 41.5%. EPS is forecasted at 21 cents.
Skyworks continues to gain share across the mobile Internet spectrum, which covers everything from net books and data cards to smartphones and even entry-level handsets. In the reported quarter, Skyworks added several new Android-based platforms including Google’s (NASDAQ:GOOG) recently launched Nexus One mobile phone.
The company continues to gain traction in the smartphone category. The company continues to leverage its expertise for producing cost-effective solutions that help decrease the handset manufacturers total billable material costs. The company has tie-ups with major OEMs that underscore the company’s success in gaining market share.
Headquartered in Woburn, Massachusetts, Skyworks Solutions designs, manufactures and markets a broad range of high performance analog and mixed-signal semiconductors that enable wireless connectivity.