Emcore and Skyworks report financial results
Recent restructuring to reduce its payroll and operating costs are expected to yield savings of $25 million annually. As a result, Emcore expects to see a cash flow breakeven in the first quarter of its next fiscal year.
Skyworks makes its reporting debut
Newly formed Skyworks Solutions (see related story) reported revenues of $113 million and a net loss of $182 million for the third quarter ended June 30. The figures reflect three months of Conexant Systems wireless business together with only three days of Alpha Industries’ operations. The merger that formed Skyworks closed three days before the end of the accounting period. The loss includes one-time charges associated with the merger and cost reduction activities. Skyworks expects revenues for the fourth quarter to be $150 million and for the company to approach breakeven.
"On a pro forma basis, assuming Alpha and Conexant s wireless business were together throughout the entire quarter, revenues would have been $137 million, up 7 percent sequentially, with a $19 million operating loss, excluding one-time items, in line with the guidance that both businesses established at the beginning of the quarter," said David Aldrich, Skyworks president and CEO.
"Overall I am extremely pleased with the performance of our newly combined business over the past few months, particularly given that we successfully completed the many merger-related tasks within the aggressive timetable set forth back in December," Aldrich added. "With the merger complete, we have intensified focus on our core strategic objectives of leveraging our product depth and breadth across our diversified customer base, growing significantly faster than the overall market, returning to operating profitability this year and steadily marching towards our target model of a 15% operating margin."
