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Skyworks Solutions Annual Report, Year Ended Sep 30, 2005

Filing Date
Filed December 14, 2005
Period End
September 30, 2005
Security
SWKS
In the record · 2016–202610-K2110-Q338-K121

SWKS filed 21 annual reports (10-K), 33 quarterly reports (10-Q) and 121 current reports (8-K) between 2016 and 2026.

  1. FY2019 annual report10-K · Nov ’19Nov ’19
  2. Leadership change8-K · Feb ’22Feb ’22
  3. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed December 14, 2005. Cited figures are marked; the original filing is the authoritative source.

Skyworks Solutions, Inc. reported fiscal 2005 (year ended September 30, 2005) net revenues of $792.4 milliona, up 1.1% from $784.0 million in fiscal 2004, and net income of $25.6 million, or $0.16 per diluted share, compared with $22.4 million, or $0.15, in fiscal 2004.

Gross margin declined to 38.8% from 39.9%, driven by costs tied to the launch of highly integrated products, an unfavorable product mix shift, and a one-time $3.2 millionb payment to a customer. Operating income rose to $50.1 million from $42.7 million, helped by lower operating expenses; no special charges were recorded in fiscal 2005 compared with $17.4 million in fiscal 2004. RF product revenues increased 16.2% in aggregate dollars, while cellular systems revenues fell 13.9% and assembly and test services revenues declined 62.6% after the Conexant arrangement ended on June 30, 2005.

The balance sheet remained solid, with cash and cash equivalents of $116.5 millionc, short-term investments of $113.3 million, and stockholders' equity of $792.6 million. Total indebtedness was about $280 million, comprising a $230 million 4.75% convertible subordinated note due November 2007 and $50 million drawn on a receivables-backed credit facility. Operating cash flow was $54.2 million, down from $91.9 million, with days sales outstanding rising to 82 from 66, and the company flagged uncertainty over collection of a receivable from customer Vitelcom Mobile after weather-related damage to its Mexican facility.

Management expects capital expenditures of about $40 milliond in fiscal 2006 and anticipates stock-based compensation expense of $25.5 million over fiscal 2006 through 2011 after adopting SFAS 123(R). The filing highlights concentration risk, with the three largest customers representing approximately 38.4% of net revenue in fiscal 2005, and ongoing exposure to the cyclical wireless semiconductor market. The company has not paid cash dividends since fiscal 1986 and plans to retain earnings to fund growth.

02—Key points

Key Highlights

  1. Net revenues of $792.4 million in fiscal 2005, up 1.1% from $784.0 million in fiscal 2004.
  2. Net income of $25.6 million, or $0.16 per diluted share, versus $22.4 million, or $0.15, in fiscal 2004.
  3. Gross margin fell to 38.8% from 39.9%, reflecting product mix, launch costs for highly integrated products, and a one-time $3.2 million customer payment.
  4. Operating income rose to $50.1 million from $42.7 million, with no special charges in fiscal 2005 versus $17.4 million in fiscal 2004.
  5. Operating cash flow fell to $54.2 million from $91.9 million, with days sales outstanding rising to 82 from 66.
  6. Total indebtedness of about $280 million, including a $230 million 4.75% convertible subordinated note due November 2007 and $50 million under a credit facility.
  7. Three largest customers accounted for approximately 38.4% of fiscal 2005 net revenue, and a receivable from Vitelcom Mobile remains uncertain after weather-related damage to its customer's Mexican facility.

03—Questions

Frequently Asked Questions

  1. How did Skyworks perform financially in fiscal 2005?

    Net revenues were $792.4 million, up 1.1% from fiscal 2004, and net income was $25.6 million, or $0.16 per diluted share, compared with $22.4 million, or $0.15, a year earlier. Operating income increased to $50.1 million from $42.7 million.

  2. Why did gross margin decline in fiscal 2005?

    The filing attributes the decline from 39.9% to 38.8% to continued costs of launching more highly integrated products, an unfavorable product mix shift in the fourth quarter, and a one-time $3.2 million payment to a customer, along with lower assembly and test services provided to Conexant.

  3. What are the company's main debt obligations and liquidity position?

    Skyworks had about $280 million in total indebtedness at September 30, 2005, including $230 million of 4.75% convertible subordinated notes due November 2007 and $50 million borrowed under a credit facility. Cash and cash equivalents were $116.5 million and short-term investments were $113.3 million.

  4. What risks does the filing identify for investors?

    Key risks include the cyclical nature of the wireless semiconductor industry, customer concentration with the three largest customers at about 38.4% of fiscal 2005 revenue, reliance on third-party foundries and a sole-source supplier for epitaxial wafers, intense competition with declining average selling prices, and uncertainty over collection of a receivable from Vitelcom Mobile.

  5. Does Skyworks pay dividends, and what accounting changes affect future results?

    Skyworks has not paid cash dividends on common stock since an Alpha dividend in fiscal 1986 and expects to retain future earnings to finance growth. The company will adopt SFAS 123(R) on October 1, 2005, and anticipates stock-based compensation expense of $25.5 million over fiscal 2006 through 2011.

04—Continue

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