SWKS earnings call for the period ending March 31, 2022.

Skyworks Solutions (SWKS) Q2 2022 Earnings Call Transcript

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Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good afternoon, and welcome to Skyworks Solutions second-quarter fiscal year 2022 earnings call. This call is being recorded. At this time, I will turn the call over to Mitch Haws, investor relations for Skyworks. Mr.

Haws, please go ahead.

Mitch Haws — Investor Relations

Thank you, Rachel. Good afternoon, everyone, and welcome to Skyworks’ second-fiscal quarter 2020 conference call. With me today are Liam Griffin, our chairman, chief executive officer, and president; and Kris Sennesael, our chief financial officer. Before we begin, I would like to remind everyone that our discussion will include statements relating to future results and expectations that are or may be considered forward-looking statements.

Please refer to our earnings press release and recent SEC filings, including our annual report on Form 10-K, for information on certain risks that could cause actual outcomes to differ materially and adversely from any forward-looking statements made today. Additionally, the results and guidance we will discuss include non-GAAP financial measures consistent with our past practice. Please refer to our press release within the Investor Relations section of our company website for a complete reconciliation to GAAP. With that, I’ll turn the call to Liam.

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Liam Griffin — Chairman, Chief Executive Officer, and President

Thanks, Mitch, and welcome, everyone. Despite a challenging macro backdrop, I am pleased to report that Skyworks delivered record second quarter results, with double-digit year-over-year growth both revenue and earnings per share. We continue to benefit from a broad and diverse product portfolio. And with an expanding set of customers in high-growth markets, we are well positioned to outperform in the current environment.

Looking at the quarter in more detail. We delivered record Q2 revenue of $1.34 billion, above consensus and up 14% compared to last year, highlighting both our growing content within Tier 1 mobile and the increasing diversification of our customer base and technology reach. In fact, our broad market revenue rose to a record $523 million in the quarter, up 10% sequentially and 36% year over year. In addition, we continue to drive solid profit margins, exceptional cash flow and consistent cash returns.

We achieved gross margin of 51.2% and operating margin of 36.8%. We posted earnings per share of $2.63, up 11% year over year. We generated operating cash flow of $393 million, and we returned $509 million to shareholders through dividends and share repurchases. Our strong results this quarter were driven by a vast expansion of use cases from content-rich smartphones to complex IoT devices, to innovative solutions for the automotive markets, industrial and infrastructure.Specifically in mobile, we supported the top five OEMs with our Sky5 architectures, including flagship models from Google, Samsung and other Tier 1s. In parallel, we leverage our in-house temperature compensated SAW, BAW and gallium arsenide technologies, to extend the reach across further content opportunities in 5G. In enterprise and IoT, we powered Comcast’s latest WiFi 6 residential gateways, partnered with T-Mobile for their integrated 5G fixed wireless access service. We debuted the industry’s first WiFi 6E gaming router featuring ultrafast quad-band performance.And we embedded Sky5 technology in rugged mobile computing devices for industrial-grade factory automation. In automotive, we are executing on our vision to lead the global transition while accelerating the shift to electrification trends that pave the way for cleaner and more efficient autonomous transport. Over the past quarter, we enabled next-generation wireless technologies across multiple leading OEMs. Further, our power isolation portfolio continue to gain momentum, with the global EV market leaders.And finally, in infrastructure and in Industrial. We captured milestone design wins at Tier 1 equipment and service providers for 5G macro and small cell […]

source SWKS earnings call for the period ending March 31, 2022.