Efficiency drive boosts profit margin at Skyworks
Skyworks Solutions has reported revenue for the third fiscal quarter ended 1 July of $191.5 million, an increase of $1.0 million sequentially, but down $15.9 million year-on-year.
Third quarter profit for the US-based RF chip maker was $7.4 million, lower than the $13.0 million reported one year ago, but an improvement on the $1.2 million income in the previous quarter.
Gross margin for the recent quarter was 40.7%, a rise of 2.5% sequentially.
According to Skyworks CEO David Aldrich the improvement in gross margin was driven by a combination of further diversification into linear products, higher levels of integration, and greater operational efficiencies. The company believes that further improvements in these areas could lead to a gross margin of at least 45% in 2006.
Skyworks anticipates that fourth fiscal quarter revenue will be between $191 million and $202 million.
In the third fiscal quarter Skyworks generated $25 million of cash flow from operations, and its cash and investments balance increased to an all-time high of $235 million.
