Skyworks Solutions Inc. F3Q09 (Qtr End 03/07/09) Earnings Call Transcript

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2009-07-22 17:59:19.0

Tags: Call Transcript, Handset, Earnings, Skyworks Solutions Inc., Cellular Phones, Consumer Electronics, Personal Technology, Seeking Alpha

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from George Iwanyc - Oppenheimer.

George Iwanyc - Oppenheimer

Don, can you give us what the split is between the linear business and the handset business? Dave, I suspect a lot of the new application areas that you’re looking at for growth is coming in linear side. Can you give us an idea on top of energy what others applications might be coming and the timing involved?

Donald Palette

Sure, George. I will jump in quick. The split between linear and our handsets space was similar past quarter. Linear was in the 20 to 25% range and handsets in the 75 to 80% range.

Dave Aldrich

Sure, George, and I think we talked about energy management. We talked about mobile video. You probably heard a lot about that recently today. We have products, for example, that are going in high volume or ramping into high volume that would be actually facilitating an analog TV signal in certain markets that’s important.

We’re also seeing lot of these new VCO synthesizers and a high level silicon products going into 3 and 4G cellular infrastructure and back haul. We’ve talked about our catalog business. We continue to expand and add new product families and low noise amplifiers, VCOs and receiver components.

We talked about wireless LAN. We are pretty excited about the fact we can now talk about Intel as a volume customer. That’s just beginning, just at the very at its infancy. With our ongoing relationship with Broadcom, we’re now in, as of I think this quarter and next three of the four, largest laptop manufacturers in the world. That’s a pretty big change from where we were six months ago. So I guess those would be some of the top ones that come to mind, George.

George Iwanyc Oppenheimer

Following up on that, when you look at those applications ramping and the operating margin targeted 20% at 240 million, is the linear and handset mix staying in the same range? Is the long-term gross margin target still around 42%?

Dave Aldrich

Well, the short-term like I have to say now, the more immediate target that Don has defined as 20% operating income, we don’t view that as a long-term model any longer. That occurs in about 240 million in revenue and our growth rate, we think we can begin to see that. I think longer term, we’re really looking at a very different model I discussed in the prepared comments as paradigm shift.

 

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