* Second quarter results beat analysts' average estimate
* Third quarter profit, revenue forecast beats estimate
* In early talks with Samsung to supply chips for Galaxy S6
* Shares rise as much as 12 pct in extended trading
(Adds company executive, analyst comments, background; updates
By Aurindom Mukherjee
April 22 Chipmaker Skyworks Solutions Inc's
second-quarter results and current-quarter forecast
beat Wall Street estimates, helped by strong sales of chips used
to connect machines to the Internet.
Shares of the company, whose radio frequency analog chips
connect electronic devices to a network, rose 12 percent in
extended trading on Tuesday.
Machine-to-machine connectivity, more commonly known as the
"Internet of Things", allows machines on both wired and wireless
networks to interact, with its uses ranging from detecting oil
drill sites to medical personnel tracking patients' health.
Skyworks, whose chips connect smartphones and tablets to a
telecom network, expects revenue from Samsung Electronics Co Ltd
to rise this year, driven by the use of its chips in
the South Korean company's wide range of smartphones, including
the successful Galaxy S5.
"As we look beyond 2014 we are starting to now engage early
with the Galaxy S6," Executive Vice President Liam Griffin said
on a conference call.
Besides Samsung, Skyworks also supplies chips to Apple Inc's
largest contract manufacturer, Foxconn Technology
Skyworks is not only benefiting from higher orders from
handset makers but also from the growth of internet connected
devices, or the "Internet of Things", RBC Capital Markets
analyst Doug Freedman said.
Among other devices, the company's chips are used in
Volkswagen AG's luxury division Audi's HomeLink
programmable car system, allowing users to open and close garage
door from their car.
Skyworks is "set to substantially outpace the broader
semiconductor industry as we capitalize on increasing analog
system complexity driven by the Internet of Things," Skyworks
CEO David Aldrich said in a statement.
The company, whose chips are also used in e-book readers and
LED lighting, forecast current-quarter adjusted earnings of 73
cents per share on a 23 percent rise in revenue to $535 million.
Analysts on average were expecting earnings of 63 cents per
share on revenue of $488.2 million, according to Thomson Reuters
The company's net income rose to $76.9 million, or 40 cents
per share, in the second quarter ended March 28, from $61.7
million, or 32 cents per share, a year earlier.
Excluding one-time items, profit was 62 cents per share,
above the average analyst estimate of 59 cents.
Revenue rose 13 percent to $481.0 million, also beating
analysts' average estimate of $470.2 million.
Skyworks shares were up 12 percent at $41.38 in trading
after the bell. They closed at $37.02 in regular trading on the
(Reporting By Aurindom Mukherjee in Bangalore; Editing by Savio