GO
Loading...

UPDATE 1-Skyworks forecasts strong qtr as demand rises for analog chips

Wednesday, 30 Oct 2013 | 6:19 PM ET

* Expects 1st-quarter adj earnings $0.66/shr vs est $0.65

* Expects revenue $500 mln vs est $494.6 mln

* 4th-quarter adj earnings $0.64/shr vs est $0.62

* Revenue $477.0 mln vs est $474.7 mln

* Shares rise 5 percent in extended trading

Oct 30 (Reuters) - Chipmaker Skyworks Solutions Inc forecast current-quarter results above analysts' estimates as it sells more analog chips used to connect machines to the Internet, sending its shares up 5 percent in extended trading.

Machine-to-machine connectivity, more commonly known as the "Internet of Things", allows machines on both wired and wireless networks to interact with one other.

The technology helps in detecting oil drill sites, controlling traffic, monitoring cars and allowing medical personnel to keep track of health of patients.

"We're already aligned with the major medical equipment makers like GE Medical, Boston Scientific Corp and Medtronic Inc," Skyworks Chief Executive David Aldrich said on a conference call with analysts.

Skyworks, whose analog chips are also used in e-book readers, cable modems and LED lighting, forecast first-quarter adjusted earnings of 66 cents per share. Revenue is expected to be $500 million.

Analysts on average expected earnings of 65 cents per share on revenue of $494.6 million, according to Thomson Reuters I/B/E/S.

The company, whose radio frequency chips connect smartphones and tablets to a network, counts Apple Inc's largest contract manufacturer Foxconn Technology Group and Samsung Electronics Co Ltd as its top customers.

RBC Capital Markets analyst Doug Freedman said in September that a tear-down of Apple's iPhone 5S and 5C models showed that Skyworks and RF Micro Devices Inc had replaced the main antenna switch previously supplied to iPhones by Peregrine Semiconductor Corp.

Skyworks' net income rose to $84.2 million, or 44 cents per share, in the quarter ended Sept. 27, from $61.6 million, or 32 cents per share, a year earlier.

Excluding one-time items, Skyworks earned 64 cents per share, above the average analyst estimate of 62 cents. Revenue rose 13.3 percent to $477 million, beating analysts' estimate of $474.7 million.

The company's customers also include Google Inc, Cisco Systems Inc and HTC Corp.

Skyworks shares closed at $24.48 on the Nasdaq.