skyworks overview
TRANSCRIPT
Company OverviewCompany Overview
May 2010
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.
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
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,
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Viral Social Networking
Al O Always On ConnectivityConnectivity
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
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
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
Embedded Wireless Applications
Netbooks Notebooks
3G and 4G Datacards and Video PlatformseReaders
Explosion of New Access Products
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
Vertical MarketsVertical Markets
Smart GridSmart Grid
A High Growth Adjacent Application
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
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
Linear Components
LNAsLNAs
Synthesizers
Switches
Attenuators
Diodes
Mixers
Passives
Receivers
Catalog with Over 800 Products for Adjacent Markets
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
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
Operational Execution
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
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
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%
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