01—Abstract
Summary
Summary of the 10-K filed November 15, 2024. Cited figures are marked; the original filing is the authoritative source.
Skyworks Solutions, Inc. reported fiscal 2024 (year ended September 27, 2024) net revenue of $4,178.0 milliona, down 12.5% from $4,772.4 million in fiscal 2023, driven primarily by lower demand for mobile, analog, and mixed-signal products.
Gross profit fell to $1,720.8 millionb (41.2% of net revenue, versus 44.2% a year earlier), reflecting unfavorable product mix, lower unit volumes, and lower average selling prices. Operating income declined to $637.4 million from $1,125.0 million, and net income was $596.0 million, or $3.69 per diluted share, compared with $982.8 million and $6.13 in fiscal 2023. Impairment, restructuring, and other charges rose to $150.0 million, mainly from abandoned or delayed in-process R&D projects of $147.9 million.
Cash generation and balance sheet items were comparatively strong. Cash provided by operating activities was $1,824.7 millionc, and cash, cash equivalents, and marketable securities rose to $1,574.1 million from $738.5 million after $300.0 million of debt repayments. Dividends paid totaled $439.1 million, and share repurchases were $77.3 million.
The company declared a $0.70d quarterly dividend on November 12, 2024, and $1.9 billion remained available under its repurchase program. Apple accounted for 69% of fiscal 2024 net revenue, and the three largest receivable balances comprised 80% of gross accounts receivable.
The filing also flags risks for investors, including customer concentration, the planned relocation of the Singapore Filter Manufacturing Facility after its sublease expires in July 2025, a Singapore tax holiday that decreased taxes by $329.8 million cumulatively over fiscal 2021 through 2024, and exposure to China-related export restrictions. The company was in compliance with its debt covenants, and its Revolving Credit Facility had no borrowings outstanding as of September 27, 2024.
02—Key points
Key Highlights
- Net revenue of $4,178.0 million, down 12.5% from $4,772.4 million in fiscal 2023, driven primarily by lower demand for mobile, analog, and mixed-signal products.
- Gross profit of $1,720.8 million, or 41.2% of net revenue, versus 44.2% in fiscal 2023, due to unfavorable product mix, lower unit volumes, and lower average selling prices.
- Net income of $596.0 million, or $3.69 per diluted share, compared with $982.8 million, or $6.13 per diluted share, in fiscal 2023.
- Impairment, restructuring, and other charges rose to $150.0 million, primarily from $147.9 million of abandoned or delayed in-process R&D projects.
- Cash, cash equivalents, and marketable securities increased to $1,574.1 million from $738.5 million, supported by $1,824.7 million of operating cash flow and $300.0 million of debt repayments.
- Apple accounted for 69% of fiscal 2024 net revenue, and the three largest accounts receivable balances comprised 80% of gross accounts receivable, highlighting customer concentration.
- The company declared a $0.70 per share quarterly dividend on November 12, 2024, and $1.9 billion remained available under its stock repurchase program.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, Skyworks Solutions kept $0.14.
- Revenue$4.18B100.0%
- Cost of revenue−$2.46B58.8%
- Gross profit$1.72B41.2%
- Operating costs−$1.08B25.9%
- Operating income$637.4M15.3%
- Interest, other & tax−$41.4M1.0%
- Net income$596.0M14.3%
Where FY2024 revenue went
$4.18B- Cost of revenue: $2.46B, 59% of revenue
- R&D: $631.7M, 15% of revenue
- Net income: $596.0M, 14% of revenue
- SG&A: $300.8M, 7.2% of revenue
- Other operating costs: $150.9M, 3.6% of revenue
- Interest, other & tax: $41.4M, 1.0% of revenue
Kept 14% as net incomeInterest, other & tax $41.4M · 1.0%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed November 15, 2024Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $4.18B$4.77B | −12.5% |
| Cost of Revenue | $2.46B$2.67B | −7.8% |
| Gross Profit | $1.72B$2.11B | −18.3% |
| R&D Expenses | $631.70M$606.80M | +4.1% |
| SG&A Expenses | $300.80M$314.00M | −4.2% |
| Operating Expenses | $1.08B$982.30M | +10.3% |
| Operating Income | $637.40M$1.13B | −43.3% |
| Interest Expense | $30.70M$64.40M | −52.3% |
| Net Income | $596.00M$982.80M | −39.4% |
| EPS (Basic) | $3.72$6.17 | −39.7% |
| EPS (Diluted) | $3.69$6.13 | −39.8% |
| Shares Outstanding (Basic) | 160.10M159.40M | +0.4% |
| Shares Outstanding (Diluted) | 161.50M160.30M | +0.7% |
05—Questions
Frequently Asked Questions
Why did Skyworks' revenue and profitability decline in fiscal 2024?
Net revenue fell 12.5% to $4,178.0 million, driven primarily by lower demand for mobile, analog, and mixed-signal products. Gross profit declined due to unfavorable product mix, lower unit volumes, and lower average selling prices. Operating income dropped to $637.4 million from $1,125.0 million.
How strong is Skyworks' cash position and cash generation?
Cash provided by operating activities was $1,824.7 million in fiscal 2024. Cash, cash equivalents, and marketable securities increased to $1,574.1 million from $738.5 million, after $300.0 million of debt repayments, $439.1 million of dividends, and $77.3 million of share repurchases. The $750.0 million Revolving Credit Agreement had no borrowings outstanding as of September 27, 2024.
What are the main risks related to customer concentration?
Apple accounted for 69% of fiscal 2024 net revenue through distributors, contract manufacturers, and direct sales. The three largest accounts receivable balances comprised 80% of gross accounts receivable as of September 27, 2024. The filing notes that loss of, or reduced orders from, major customers could materially affect results and the stock price.
Will Skyworks need to change any manufacturing facilities?
Yes. The sublease for the Singapore Filter Manufacturing Facility expires in July 2025, and the site owner plans to redevelop it. The company intends to request a five-year extension, which it may request in February 2025, but there is no guarantee of approval. The company is exploring alternative sites, and relocation could cause disruptions and significant capital expenses.
What did Skyworks say about dividends and share repurchases?
The Board declared a $0.70 per share cash dividend on November 12, 2024, payable December 24, 2024. Fiscal 2024 dividends totaled $2.74 per share, or $439.1 million. The January 31, 2023 repurchase program authorizes up to $2.0 billion, with $1.9 billion remaining as of September 27, 2024. The program is scheduled to expire February 1, 2025.
06—Continue