skyworks overview

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Company Overview Company Overview May 2010

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Page 1: Skyworks Overview

Company OverviewCompany Overview

May 2010

Page 2: Skyworks Overview

Safe Harbor StatementThis presentation contains forward-looking statements that are based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us. These forward-looking statements speak only as of this p y g p ydate and are based upon the information available to us at this time. Such information is subject to change, and we will not necessarily inform you of such changes. Forward-looking statements are inherently subject to risks and uncertainties, and actual results and

t diff t i ll d d l lt f i f t S h f t outcomes may differ materially and adversely as a result of various factors. Such factors include, but are not limited to: uncertainty regarding global economic and financial market conditions; the susceptibility of the wireless semiconductor industry and the markets addressed by our, and our customers', products to economic downturns; the timing, addressed by our, and our customers , products to economic downturns; the timing, rescheduling or cancellation of significant customer orders and our ability, as well as the ability of our customers, to manage inventory; losses or curtailments of purchases or payments from key customers, or the timing of customer inventory adjustments; and changes in laws, regulations and/or policies in the United States that could adversely affect financial markets and our ability to raise capital. Additional information on these and other factors that may cause actual results and Skyworks’ performance to differ is included in the company’s recent SEC filingscompany s recent SEC filings.

Page 3: Skyworks Overview

Skyworks Vision

Enabling Mobile Connectivity Through Analog Semiconductor Innovation

I. Addressing High Growth Markets and Applications

II. Gaining Share Through Technology Leadership and Scale

III Generating Superior Operating ResultsIII. Generating Superior Operating Results

Page 4: Skyworks Overview

Mobile Internet Traffic

2 000 000

2,500,0002,184,212

r Mon

th

1,500,000

2,000,000 Data

P2P131% CAGR

erab

ytes

per

1,000,000 Video1,076,319

Te

500,000

Audio33,068 85,075207,412

482,216

02008 2009 2010E 2011E 2012E 2013E

Audio,

Page 5: Skyworks Overview

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Viral Social Networking

Page 6: Skyworks Overview

Al O Always On ConnectivityConnectivity

Page 7: Skyworks Overview

Cellular Handset Market Outlook

1 600

1,800 1,60910% CAGR

1,200

1,400

1,600

1,187 1,2001,310 GSM/GPRS

CDMA and iDEN

1 096

1,45010% CAGR

800

1,000

, 00EDGE

3G / Multi-mode32% CAGRUn

its (M

)

1,096

400

600 WCDMA

-

200

2008 2009 2010 2011 2012 2013

Source: Deutsche Bank, Oppenheimer and Internal Estimates, January 2010

Page 8: Skyworks Overview

800

Smart Phone Outlook

600

800

400

600

its (M

) Social Networking48% CAGR

200

Un

Advanced Multimedia

-2009 2010E 2011E 2012E

Enterprise Platforms2009 2010E 2011E 2012E

Page 9: Skyworks Overview

Addressable PA/FEM Semi Content

$4 500

$5,000 $4.9B

GSM/GPRSCDMA and iDEN

$3,500

$4,000

$4,500 EDGE

3G / 30% CAGR

17% CAGR

$2 000

$2,500

$3,000

$ Milli

ons

$2.6B

WCDMA

$2.6B

$1.50ASP

$1,000

$1,500

$2,000 WCDMA

$4-$5ASP

$0

$500

2008 2009 2010 2011 2012 2013

Source: Deutsche Bank, Oppenheimer and Internal Estimates, January 2010

Page 10: Skyworks Overview

Embedded Wireless Applications

Netbooks Notebooks

3G and 4G Datacards and Video PlatformseReaders

Explosion of New Access Products

Page 11: Skyworks Overview

Industry Dynamics

2GEDGE & 3GMultimode2G Multimode

LowMarket Growth High

$1 Dollar Content $3 to $6

Seldom

Many

Sole Source

Competitors

Almost Always

FewManyCompetitors Few

Changing Landscape with Fewer CompetitorsChanging Landscape with Fewer Competitors

Page 12: Skyworks Overview

Vertical MarketsVertical Markets

Smart GridSmart Grid

A High Growth Adjacent Application

Page 13: Skyworks Overview

Smart Metering

2,500 94%Unautomated

1,500

2,000

ts (M

)

Unautomated

500

1,000

Glob

al Un

it

6%• Utilizes WiFi and ZigBee

0Worldwide2.46 Billion

Automatedg

• Smart Meters

• Programmable Thermostats and Appliances

Source: ABS Energy Research and Management EstimatesElectric, Gas and Water MetersAppliances

Page 14: Skyworks Overview

Green TechnologiesHome Area NetworkSmart Meter

Displays Other Appliances

ZigBee® Smart EnergyN t k

ElectricNetwork

Frequency: 2.4 GHz

Water

Air Conditioners ProgrammableThermostatsGas

Addressing Both Access Points and Network / Grid Nodes

Page 15: Skyworks Overview

Linear Components

LNAsLNAs

Synthesizers

Switches

Attenuators

Diodes

Mixers

Passives

Receivers

Catalog with Over 800 Products for Adjacent Markets

Page 16: Skyworks Overview

T t M k t d A li ti

Analog Portfolio OverviewTarget Market and Applications

Core Competency

ssio

n

Amplifiers

MilitaryBroadband MedicalIndustrialInfrastructure

gTr

ansm

is Amplifiers

Receivers

Front-End Modules

al Pr

oces

sing

Synthesizers

Mixers

Sign

a

Modulators

Diversifying Our Business

Page 17: Skyworks Overview

Analog Market Outlook8% CAGR

16.0

18.0

$13 4 $14.1$15.4

$16.8

Wired CommunicationsAutomotive ElectronicsOther

$18

$16

10.0

12.0

14.0 $13.4

ons

Consumer Electronics

Wireless Communications

Wired Communications$14

$12

$10

6.0

8.0$ Billi

o

Industrial Electronics

Consumer Electronics$8

$6

$4

0.0

2.0

4.0

Computing / Storage

$4

$2

$02009 2010 2011 2012

Source: Gartner Group and Internal Estimates

2009 2010 2011 2012

Analog Markets Present Substantial and Diversified Opportunities

Page 18: Skyworks Overview

Operational Execution

Page 19: Skyworks Overview

Q210 Performance SummaryQuarterly Revenue and Gross Margin

45%

$275

$300

Quarterly Non-GAAP EPS and Operating Margin

25%$0.30

Operating

Gross M P EP

S

($M)

$238 43%

44%

$225

$250

$275 $0.2420%

$0.20

$0.25

Up 38%Up 100%

g Margin

MarginNo

n-GA

AP

Reve

nue

$173 41%

42%

$175

$200

$225

$0.1215%

$0 10

$0.15

Up 38%

39%

40%

$125

$150 10%$0.05

$0.10

38%$100Q209 Q210

5%$0.00Q209 Q210

O t i Add d M k t d Outpacing our Addressed Markets and Demonstrating Operating Leverage

Page 20: Skyworks Overview

Q310 Outlook

$300Revenue ($M)

$0.35Non-GAAP EPS

Up 10% - 15%

$200

$250

$0.25

$0.30

p$0.30Up 25%

$238

$0.24

$150

$200

$0.15

$0.20

$50

$100

$0.05

$0.10

$0Q210 Q310 G*

$0.00Q210 Q310 G*

* Per Company Guidance April 29, 2010

Page 21: Skyworks Overview

Margin Expansion Drivers

Non-GAAP

Revenue 100.0%

Q2 FY10

Gross Margin 42.3%

RevenueGrowth Efficiencies

Operating Expenses 21.8%Operating Expense

Leverage

Operating Margin 20.5% 25%

Page 22: Skyworks Overview

Skyworks Vision

Enabling Mobile Connectivity Through Analog Semiconductor Innovation

I. Addressing High Growth Markets and Applications

II. Gaining Share Through Technology Leadership and Scale

III Generating Superior Operating ResultsIII. Generating Superior Operating Results