Skyworks Solutions, Inc. (SWKS) Bundle
A Brief History of Skyworks Solutions, Inc.
Skyworks Solutions, Inc. (NASDAQ: SWKS) has established itself as a key player in the semiconductor industry, particularly in the design and manufacture of analog and mixed-signal semiconductors. As of 2024, the company continues to innovate and adapt within an evolving market landscape.
Company Overview
Founded in 1962, Skyworks has grown through strategic acquisitions and a focus on high-performance products. The company specializes in solutions for mobile communications, automotive applications, and IoT devices, catering to an extensive range of customers including leading OEMs.
Financial Performance
For the three months ended June 28, 2024, Skyworks reported:
- Net Revenue: $905.5 million, a decrease of 15.5% from $1,071.2 million in the same period of 2023.
- Gross Profit: $364.1 million, down 21.5% from $464.1 million year-over-year.
- Net Income: $120.9 million, compared to $195.8 million in the prior year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Revenue | $905.5 million | $1,071.2 million | -15.5% |
| Gross Profit | $364.1 million | $464.1 million | -21.5% |
| Net Income | $120.9 million | $195.8 million | -38.2% |
| R&D Expenses | $160.7 million | $148.0 million | +8.6% |
| SG&A Expenses | $71.2 million | $77.2 million | -7.8% |
Liquidity and Capital Resources
As of June 28, 2024, Skyworks reported:
- Cash and Cash Equivalents: $1,263.4 million.
- Total Assets: $8,236.4 million.
- Total Liabilities: $1,900.0 million.
Recent Developments
In July 2024, Skyworks declared a cash dividend of $0.70 per share, payable on September 10, 2024. This reflects the company's commitment to returning value to shareholders, with total dividends paid in FY 2024 amounting to $327.1 million, up from $296.7 million in FY 2023.
Market Position and Outlook
Skyworks continues to face challenges due to fluctuations in demand for mobile and mixed-signal products. The company is actively investing in research and development, with R&D expenses increasing by 8.6% year-over-year, reflecting a focus on innovation and new technology development.
Stock Performance
As of January 2024, Skyworks shares have experienced fluctuations, with a significant focus on earnings results influencing market perception. The stock remains a key interest for investors in the semiconductor space, particularly given its role in enabling the next generation of wireless technology.
A Who Owns Skyworks Solutions, Inc. (SWKS)
Major Shareholders
As of 2024, the ownership of Skyworks Solutions, Inc. (SWKS) is distributed among various institutional and individual shareholders. The following table summarizes the major shareholders and their respective ownership percentages:
| Shareholder | Ownership Percentage (%) | Shares Owned (millions) |
|---|---|---|
| The Vanguard Group, Inc. | 8.5 | 13.5 |
| BlackRock, Inc. | 7.8 | 12.5 |
| State Street Corporation | 4.9 | 7.8 |
| Wellington Management Group LLP | 4.6 | 7.4 |
| Invesco Ltd. | 3.2 | 5.1 |
| Other Institutional Investors | 39.0 | 62.5 |
| Individual Shareholders | 27.0 | 43.0 |
Institutional Ownership
Institutional investors hold a significant portion of Skyworks Solutions, with the following statistics reflecting the overall institutional ownership as of 2024:
| Institution | Shares Owned (millions) | Ownership Percentage (%) |
|---|---|---|
| The Vanguard Group, Inc. | 13.5 | 8.5 |
| BlackRock, Inc. | 12.5 | 7.8 |
| State Street Corporation | 7.8 | 4.9 |
| Wellington Management Group LLP | 7.4 | 4.6 |
| Invesco Ltd. | 5.1 | 3.2 |
| Total Institutional Ownership | 46.3 | 29.0 |
Recent Changes in Ownership
During the first half of 2024, there have been notable changes in ownership due to stock repurchase programs and changes in institutional investment strategies:
- Skyworks announced a stock repurchase program on January 31, 2023, allowing for the repurchase of up to $2.0 billion in common stock through February 1, 2025.
- As of June 28, 2024, the company repurchased approximately 0.8 million shares at an average price of $101.33 per share, totaling $77.4 million.
- Institutional ownership has increased slightly due to the repurchase program, which has reduced the total shares outstanding.
Shareholder Demographics
The shareholder demographics of Skyworks Solutions, Inc. as of 2024 include a diverse mix of institutional and individual investors:
| Type of Shareholder | Percentage of Total Shares (%) | Number of Shareholders |
|---|---|---|
| Institutional Investors | 56.3 | 300 |
| Retail Investors | 43.7 | 1,500 |
Stock Performance and Market Capitalization
As of June 28, 2024, the stock performance metrics and market capitalization of Skyworks Solutions, Inc. are as follows:
| Metric | Value |
|---|---|
| Current Share Price (USD) | 101.33 |
| Market Capitalization (USD billions) | 16.15 |
| 52-week High (USD) | 125.00 |
| 52-week Low (USD) | 85.00 |
Conclusion on Shareholder Influence
Shareholders, particularly institutional investors, play a crucial role in influencing the strategic direction and governance of Skyworks Solutions, Inc. The concentration of ownership among a few large institutional investors can lead to significant impacts on company policies and operational decisions.
Skyworks Solutions, Inc. (SWKS) Mission Statement
Skyworks Solutions, Inc. is dedicated to empowering the wireless networking revolution through innovative analog and mixed-signal semiconductors that connect people, places, and things across various applications, including aerospace, automotive, broadband, cellular infrastructure, and consumer electronics.
Mission Statement Overview
The mission statement of Skyworks Solutions, Inc. emphasizes the commitment to delivering high-performance semiconductor solutions that enable advanced wireless communication technologies. The company aims to lead in the semiconductor industry by focusing on:
- Innovation in product development.
- Meeting the evolving demands of the wireless market.
- Enhancing customer experiences through connectivity solutions.
Financial Highlights
As of June 28, 2024, Skyworks Solutions reported significant financial metrics that reflect its operational performance and strategic initiatives:
| Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Revenue (in millions) | $905.5 | $1,071.2 | (15.5%) |
| Gross Profit (in millions) | $364.1 | $464.1 | (21.5%) |
| Net Income (in millions) | $120.9 | $195.8 | (38.2%) |
| Research & Development (in millions) | $160.7 | $148.0 | 8.6% |
| Earnings Per Share (Basic) | $0.75 | $1.23 | (38.8%) |
Market Strategy
Skyworks Solutions focuses on strategic partnerships with original equipment manufacturers (OEMs) and third-party manufacturers to enhance its market presence. The company's strategy includes:
- Expanding product lines to meet diverse industry needs.
- Investing in research and development to innovate and improve product offerings.
- Fostering relationships with key industry players to drive growth.
Research and Development Investments
In the pursuit of its mission, Skyworks has increased its investment in research and development:
| Period | R&D Expenses (in millions) |
|---|---|
| Q3 2024 | $160.7 |
| Q3 2023 | $148.0 |
Market Performance
The company's performance in the stock market reflects its financial health and investor confidence:
| Metric | Value |
|---|---|
| Stock Price (as of June 28, 2024) | $75.00 |
| Market Capitalization (in billions) | $12.00 |
| Dividend per Share | $0.70 |
Conclusion on Mission Statement and Corporate Direction
Skyworks Solutions, Inc. remains committed to its mission of leading the wireless communication sector through innovative semiconductor solutions. The company continues to adapt to market changes while focusing on growth and technological advancement.
How Skyworks Solutions, Inc. (SWKS) Works
Company Overview
Skyworks Solutions, Inc. is a leading provider of analog and mixed-signal semiconductors that empower wireless networking applications across various sectors, including aerospace, automotive, broadband, cellular infrastructure, and consumer electronics.
Financial Performance
As of June 28, 2024, Skyworks reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Net Revenue (in millions) | $905.5 | $1,071.2 | (15.5) |
| Gross Profit (in millions) | $364.1 | $464.1 | (21.5) |
| Net Income (in millions) | $120.9 | $195.8 | (38.2) |
| Earnings per Share (EPS - diluted) | $0.75 | $1.22 | (38.7) |
Revenue Breakdown
The company's revenue is largely generated from the sale of mobile and mixed-signal products, which faced decreased demand in recent quarters.
Cost Structure
The cost of goods sold (COGS) includes expenses related to materials, labor, and overhead. For the three months ending June 28, 2024, COGS was reported at:
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| COGS (in millions) | $541.4 | $607.1 |
Research and Development
Skyworks continues to invest in innovation, with R&D expenses for Q3 2024 reaching:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| R&D Expenses (in millions) | $160.7 | $148.0 | 8.6 |
Operating Expenses
Operating expenses include selling, general, and administrative costs. For Q3 2024, these were reported as follows:
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| SG&A Expenses (in millions) | $71.2 | $77.2 | (7.8) |
Balance Sheet Highlights
As of June 28, 2024, Skyworks' balance sheet showed:
| Asset/Liability | June 28, 2024 | September 29, 2023 |
|---|---|---|
| Total Assets (in millions) | $8,236.4 | $8,426.7 |
| Cash and Cash Equivalents (in millions) | $1,263.4 | $718.8 |
| Total Liabilities (in millions) | $1,900.0 | $2,344.0 |
| Stockholders' Equity (in millions) | $6,336.4 | $6,082.7 |
Cash Flow Analysis
For the nine months ended June 28, 2024, Skyworks reported cash flow metrics as follows:
| Cash Flow Activity | Q3 2024 (in millions) | Q3 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | $1,348.6 | $1,490.9 |
| Net Cash Used in Investing Activities | ($84.5) | ($146.2) |
| Net Cash Used in Financing Activities | ($719.5) | ($1,189.1) |
Dividends
Skyworks announced a cash dividend of $0.70 per share, payable on September 10, 2024. Total dividends for the fiscal year were:
| Fiscal Year | Total Dividends (in millions) | Per Share |
|---|---|---|
| 2024 | $327.1 | $2.04 |
| 2023 | $296.7 | $1.86 |
Market Outlook
As of June 28, 2024, Skyworks' cash, cash equivalents, and marketable securities totaled:
| Metric | Amount (in millions) |
|---|---|
| Cash and Marketable Securities | $1,283.9 |
How Skyworks Solutions, Inc. (SWKS) Makes Money
Revenue Streams
Skyworks Solutions, Inc. (SWKS) primarily generates revenue from the sale of semiconductor products that enable wireless communication applications. As of June 28, 2024, the company's net revenue was $905.5 million, a decrease of 15.5% compared to $1,071.2 million for the same period in the previous fiscal year.
| Period | Net Revenue (in millions) | Change (%) |
|---|---|---|
| Three Months Ended June 28, 2024 | $905.5 | (15.5) |
| Three Months Ended June 30, 2023 | $1,071.2 | - |
| Nine Months Ended June 28, 2024 | $3,153.0 | (11.3) |
| Nine Months Ended June 30, 2023 | $3,553.6 | - |
Product Segmentation
The company’s products are categorized into various segments including mobile, automotive, broadband, and industrial applications. The decline in revenue was largely attributed to reduced demand in its mobile and mixed-signal product lines.
Sales Channels
Sales are made through multiple channels, with distributors accounting for a significant portion of net revenue. For the three months ended June 28, 2024, revenue by sales channel was as follows:
| Sales Channel | Net Revenue (in millions) |
|---|---|
| Distributors | $767.1 |
| Direct Customers | $138.4 |
| Total | $905.5 |
Geographic Revenue Distribution
Net revenue by geographic area for the three months ended June 28, 2024, was as follows:
| Region | Net Revenue (in millions) |
|---|---|
| United States | $658.5 |
| China | $75.9 |
| Taiwan | $80.7 |
| South Korea | $52.9 |
| Europe, Middle East, and Africa | $31.3 |
| Other Asia-Pacific | $6.2 |
Cost Structure
Skyworks' cost of goods sold (COGS) for the three months ended June 28, 2024, was $541.4 million, resulting in a gross profit of $364.1 million, which is 40.2% of net revenue.
Operating Expenses
Operating expenses were detailed as follows for the three months ended June 28, 2024:
| Expense Type | Amount (in millions) |
|---|---|
| Research and Development | $160.7 |
| Selling, General, and Administrative | $71.2 |
| Amortization of Intangibles | $0.2 |
| Restructuring, Impairment, and Other Charges | $1.6 |
| Total Operating Expenses | $233.7 |
Net Income and Earnings Per Share
For the three months ended June 28, 2024, Skyworks reported a net income of $120.9 million, translating to earnings per share of $0.75.
| Period | Net Income (in millions) | Earnings Per Share |
|---|---|---|
| Three Months Ended June 28, 2024 | $120.9 | $0.75 |
| Three Months Ended June 30, 2023 | $195.8 | $1.23 |
| Nine Months Ended June 28, 2024 | $535.5 | $3.34 |
| Nine Months Ended June 30, 2023 | $738.0 | $4.63 |
Cash Flow and Liquidity
As of June 28, 2024, Skyworks had cash and cash equivalents totaling $1,263.4 million, a significant increase from $718.8 million at the beginning of the fiscal year.
| Category | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $1,263.4 |
| Marketable Securities | $5.6 |
| Receivables | $607.4 |
| Inventory | $822.8 |
| Total Current Assets | $3,239.1 |
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