Technology Stocks

Searching for a Bottoming Catalyst in Skyworks Solutions Inc (NASDAQ:SWKS)

Skyworks Solutions Inc (NASDAQ:SWKS) recently announced that Semtech (SMTC) is leveraging its newest suite of low-power, wide-area network (LPWAN) products. Specifically, Semtech is integrating Skyworks’ advanced front-end solutions with their next generation LoRa devices and wireless radio frequency technology (LoRa Technology) for picocell gateways.

According to the release, Skyworks’ industry-leading modules quadruple the operating range, supply maximum power and improve sensitivity versus alternative architectures – all in a compact form factor. The collaboration is also a potential model for future arrangements with new partners.

Skyworks Solutions Inc (NASDAQ:SWKS) bills itself as a company that, together with its subsidiaries, designs, develops, manufactures, and markets proprietary semiconductor products, including intellectual property worldwide.

Its product portfolio includes amplifiers, antenna tuners, attenuators, circulators/isolators, DC/DC converters, demodulators, detectors, diodes, directional couplers, diversity receive modules, filters, front-end modules, hybrids, LED drivers, low noise amplifiers, mixers, modulators, optocouplers/optoisolators, phase locked loops, phase shifters, power dividers/combiners, receivers, switches, synthesizers, technical ceramics, voltage controlled oscillators/synthesizers, and voltage regulators.

The company provides its products for use in the aerospace, automotive, broadband, cellular infrastructure, connected home, industrial, medical, military, smartphone, tablet, and wearable markets. It sells its products through direct sales force, electronic component distributors, and independent sales representatives. The company was founded in 1962 and is headquartered in Woburn, Massachusetts.

 

An Assistant but Right Behind?

We started off by noting that SWKS recently hit the wires with the announcement that its collaboration partner Semtech (SMTC) is leveraging its newest suite of low-power, wide-area network (LPWAN) products, with implications for SWKS end demand.

“Through our collaboration with Skyworks, we are expanding the availability of innovative LoRa options,” said Vivek Mohan, director of IoT for Semtech’s wireless and sensing products group. “Skyworks’ powerful wireless engines coupled with Semtech’s LoRa Technology will deliver easy to deploy, proven and flexible platforms with unprecedented efficiency and range to new markets for a more connected world.”

While this is a clear factor, it has been incorporated into a trading tape characterized by a pretty dominant offer, which hasn’t been the type of action SWKS shareholders really want to see. In total, over the past five days, shares of the stock have dropped by roughly -3% on above-average trading volume.

All in all, not a particularly friendly tape, but one that may ultimately present some new opportunities.

“Leveraging our global scale and expertise across diverse wireless standards, Skyworks is ramping breakthrough devices in support of exciting LoRa network deployments spanning a wide range of smart end markets,” said John O’Neill, vice president of marketing for Skyworks. “Together, we are enabling the world’s most energy-efficient ecosystems for the Internet of Things.”

Skyworks Solutions Inc (NASDAQ:SWKS) pulled in sales of $1B in its last reported quarterly financials, representing top line growth of 2.4%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1B against $389.7M).

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