February 5, 2009 / 10:29 PM / 9 years ago

UPDATE 2-Skyworks Q1 profit tops Wall St view; shares up

* Q1 profit tops Street expectations

* Sees Q2 rev to fall 20 pct sequentially

* Shares rise 12 pct (Adds details, updates share movement)

Feb 5 (Reuters) - Cellphone chipmaker Skyworks Solutions Inc (SWKS.O) posted first-quarter profit above market estimates, helped by smart phone demand, sending its shares up 12 percent in after-hours trade.

The company also forecast second-quarter earnings range, the upper end of which topped market estimates by a penny. The company expects cost control measures to kick in during the quarter.

Skyworks, whose customers include Sony Ericsson and Samsung Electronics Co Ltd (005930.KS), gets almost three-fourths of its revenue from handset business.

The company, which is trying to expand product portfolio beyond handset chips, said it had ceased to develop low-margin 3.5G and 4G cellular transceivers and diverted resources to high-growth analog markets.

This action will help improve the company’s operating income by $20 million annually, it said.

First-quarter net income was $22 million, or 13 cents a share, compared with $19.1 million, or 12 cents a share, a year ago.

    Excluding items, earnings were 17 cents a share. Revenue was $210.2 million, compared with $210.5 million in the year-ago period. [ID:nWNAB9210]

    For the second quarter, the company expects earnings of 10 cents to 11 cents, excluding items. The company forecast a drop in revenue of 20 percent sequentially. This implies revenue of $168.2 million in the second quarter, which is below analysts’ estimate of $189.8 million.

    “We are in no way immune from this unprecedented economic downturn,” a company executive said on a conference call.

    “Consumer confidence levels are approaching all-time lows and is really unclear just when we see a market recovery,” he added.

    Shares of Skyworks, which competes with RF Micro Devices RFMD.O and Anadigics Inc ANAD.O, rose to $5.60 in trading after the bell. They had closed at $5.02 Thursday on Nasdaq Thursday. (Reporting by Purwa Naveen Raman in Bangalore; Editing by Anil D’Silva, Saumyadeb Chakrabarty)

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