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Financials from Skyworks and Alcatel Optronics

Newly formed Skyworks Solutions has met its target of reaching operating profitability by the September quarter, while Alcatel Optronics has seen its losses widen as it continues with its major restructuring project
Skyworks hits its target

Skyworks Solutions reported an overall loss in its fiscal fourth quarter ended September 27, but revenues rose sharply from the year-ago period. Furthermore, the company met its target of achieving operating profitability in the September quarter.

Revenues were up over 50% to $150.7 million in the quarter, compared with $99.4 million for the year-ago quarter. Sales were up 10% from combined revenue of $137 million in the previous quarter. The company reported an overall pro forma loss of $3.9 million, or 3 cents a share, beating analysts expectations for a loss of 8 cents a share. Pro forma operating profit was $0.5 million compared to an operating loss of $19 million in the previous quarter.

For the current first quarter, the company expects revenues to rise by at least 5% sequentially.

For the fiscal year, combined company revenues (Skyworks was formed in June 2002 by the combination of Alpha Industries and Conexant’s wireless business) for 2002 were $543.1 million compared with 2001 revenues of $458.3 million.

"Back in December of last year, when we announced our merger plans, we pledged creation of a profitable $150 million business in the September 2002 quarter," said David Aldrich, Skyworks president and CEO. "Since that time, we ve grown sequentially in each and every quarter through share gains and capture of an increasing amount of semiconductor content within the cellular handset.

"In parallel, we successfully implemented a set of cost reduction actions aimed at streamlining the organization, rationalizing our product portfolio and shortening our manufacturing cycle time," continued Aldrich. "Most importantly, today I am extremely pleased to report that in our first full quarter we have delivered on our goal of achieving operating profitability."

Losses widen at Alcatel Optronics

Alcatel Optronics net loss deepened to 78.6 million Euros ($77 million) in the third quarter ending September 30, from 9.9 million Euros in the year-ago period. The company reported sequential sales down by 48.8% sequentially to 13.0 million Euros. Sales decreased by 86.3% over the same period last year.

The conmpany cites inventory back-up at the customer level and demand remaining very weak for its current difficulties. "Even in a further deteriorating market, I am confident that we will from now on deliver a sequential improvement of our financial structure, thanks to cost-cutting actions," said Jean-Christophe Giroux, Alcatel Optronics’ CEO.

"To accelerate on restructuring, we ve launched on Sept 17 our Strategic Refocus Plan that will eventually articulate our business model in two streamlined centers of excellence: Nozay, France, for active components and Livingston, Scotland, for passive components. This is coherent with our belief that Hybrid integration represents the next evolution of this industry, with Alcatel Optronics being in a position to leapfrog competition and confirm its position as a key player in the next generation markets," said Giroux.

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