Yahoo Finance Apple supplier Skyworks forecasts revenue above estimates
(Reuters) - Radio frequency chip supplier Skyworks Solutions Inc forecast better-than-expected revenue in the current quarter, helped by increased demand from smartphone makers, particularly Apple Inc.
Skyworks shares were up 1 percent in after-market trading.
Apple sold 10 million of its latest iPhones in the first weekend after the new, larger phone models went on sale in 10 countries on Sept. 19. The devices will be available in more than 115 countries by the end of the year.
Apple and Skyworks do not talk about their business relationship, but gadget repair firm iFixit said in September that iPhone 6 Plus uses chips made by Skyworks, among other companies, after prying open one of the devices.
Skyworks' strong forecast comes as investors are concerned about a broad-based downturn in the semiconductor industry due to lower demand for electronic devices
A number of U.S. chipmakers have in recent weeks suggested demand for chips from various industries, including automobiles and network equipment, was falling across regions — particularly Asia and Europe.
Skyworks, whose clients include Samsung Electronics Co Ltd, forecast an adjusted profit of $1.18 per share and revenue of $770 million for the quarter ending December.
Analysts on average were expecting a profit of $1.08 per share on revenue of $737.7 million, according to Thomson Reuters I/B/E/S.
The company had reported an adjusted profit of 67 cents per share and revenue of $505.2 million, a year earlier.
Net income rose to $174.9 million, or 90 cents per share, for the fourth quarter ended Oct. 3 from $84.2 million, or 44 cents per share, a year earlier.
On an adjusted basis, the company earned $1.12 per share.
Skyworks, whose chips connect smartphones and tablets to a telecom network, said revenue rose to $718.2 million from $477 million.
Analysts had expected a profit of $1.08 on revenue of $718.1 million.
(Reporting by Sai Sachin R and Soham Chatterjee in Bangalore; Editing by Joyjeet Das)
