Skyworks Cuts Dividend to Fund Qorvo Acquisition
The semiconductor maker reported third-quarter revenue of $935 million, a 3.2% decline from the prior-year period.
Skyworks Solutions (SWKS) reported a decline in quarterly revenue and earnings as it pivoted capital toward a major acquisition.
The results marked a period of financial contraction and strategic realignment. The company shifted its capital allocation strategy, prioritizing the combination with Qorvo over traditional shareholder returns.
Revenue fell to $935 million in the third quarter, down 3.2% from $965 million in the prior-year period. Non-GAAP diluted EPS declined to $1.08, compared with $1.15 in the second quarter.
Profitability and cash flow faced pressure during the period. GAAP gross margin compressed to 40.1% from 41.6% a year earlier. Non-GAAP free cash flow turned negative to $(16.7) million, a drop from $252.7 million in the prior-year period.
Growth in the Broad Markets segment provided a partial offset to the decline, driven by double-digit gains in the data center and automotive sectors. However, the company recorded $19.8 million in restructuring, impairment, and other charges, up from $1.5 million in the prior-year period.
Skyworks expects revenue to rise in the fourth quarter to a range between $1,010 million and $1,060 million. Mobile revenue will grow sequentially in the high-teens range, while Broad Markets is expected to grow approximately 5% year-over-year.
To fund the Qorvo acquisition, the company will raise approximately $2 billion in debt financing. Skyworks stopped declaring quarterly dividends to redirect capital toward the transaction and established a new $2 billion stock repurchase program to replace the one expiring in February 2027.