Skyworks Solutions Faces Revenue Drop, Sets New Strategies

Published 1 hours agoSWKS

Skyworks Solutions Faces Revenue Drop, Sets New Strategies

Skyworks Solutions announced its first-quarter fiscal 2025 results on February 5, revealing a notable dip in revenue and net income. The company reported a revenue of $1.068 billion, falling from $1.201 billion during the same period last year. Net income also saw a decrease, dropping to $162 million, or $1.00 per share, compared to $231.3 million, or $1.44 per share, previously. Adjusted net income stood at $258.3 million, showing a decline from the previous year's $317.0 million, as detailed by RTTNews.

Despite the revenue decline, the company's mobile division saw a positive outcome, contributing 67% of the total revenue and marking a 6% increase from the previous quarter due to new product launches. The broad markets segment showed modest growth, bouncing back to a 2% increase year-over-year. However, escalating competition is pressing Skyworks, with expectations of a 20% to 25% reduction in content per device with a key client, which might start affecting the revenue in the fourth fiscal quarter of 2025 and beyond, according to Nasdaq.

Skyworks is responding to these challenges with strategic initiatives, including announcing a significant $2 billion stock repurchase program to bolster its capital allocation approach. Moreover, a cash dividend of $0.70 per share was declared, slated for payment on March 17, 2025. In leadership changes, Philip Brace has been appointed as the new President and CEO, effective February 17, 2025, following Liam Griffin transitioning to an advisory role for a smooth leadership handover, as reported by RTTNews.

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