On a non-GAAP basis, operating income was $28.6 million matching the $28.6 million from the first fiscal quarter of 2008. Non-GAAP diluted earnings per share for the quarter was $0.17 and $0.02 better than consensus estimates. On a GAAP basis, operating income for the first fiscal quarter was $21.0 million, in line with the year-ago timeframe. GAAP diluted earnings per share was $0.13 for the period versus $0.12 in the first fiscal quarter of 2008.

Despite significant market weakness, Skyworks delivered solid financial performance and outperformed in the first fiscal quarter of 2009 driven by accelerating energy management program ramps, new analog component product launches and smart phone demand, said David J. Aldrich, president and chief executive officer of Skyworks. During the quarter we generated $75 million of cash flow from operations, retired $41 million of convertible debt for $0.93 on the dollar and exited with a quarter of a billion dollars in cash and equivalents. Looking forward, though the market environment remains uncertain, Skyworks is taking steps to further differentiate and position our business for the eventual market recovery. Specifically, early in the quarter, we transitioned development resources from our low margin 3.5G and 4G cellular transceiver programs to our clearly identified higher growth, adjacent analog markets.

The net effect is a reduction in our operating expenses of more than $20 million annually. These actions will enable us to capitalize on our expanding market opportunity and rich product pipeline while improving operating income. In summary, our performance and actions reflect our commitment to further strengthening our strategic position, enhancing profitability and creating shareholder value.

Financial Achievements

Expanded gross margin 50 basis points year-over-year to 40.3% on a non-GAAP basis (39.9% on a GAAP basis).

Maintained 13.6% operating margin on a non-GAAP basis (10.0% on a GAAP basis).

Exited Q1 FY09 with $250 million of cash and cash equivalents.

Product Highlights

Ramped energy management semiconductor solutions in support of Itron, Sensus, Landis & Gyr and others with more than 30% sequential growth.

Gained traction at Nokia-Siemens, Huawei and ZTE with 3G base station solutions.

Introduced industry’s first 4G LTE, multi-band, multi-mode FDD/TDD front-end modules.

Launched a portfolio of SMT discretes for high performance mixer and detector applications.

Second Fiscal Quarter 2009 Outlook

Our fab-lite, hybrid manufacturing strategy coupled with the completion of our operating expense reduction initiative will enable us to deliver non-GAAP diluted earnings per share of $0.10 to $0.11 in the second fiscal quarter of 2009, said Donald W. Palette, vice president and chief financial officer of Skyworks. The ongoing inventory contraction is exacerbating traditional market seasonality, and as a result, we believe the supply chain sell-in will decline 20 to 30 percent sequentially in the March quarter. Against this backdrop, we are forecasting our revenue to decrease 20 percent sequentially.

Estimated non-GAAP diluted earnings per share for the second fiscal quarter excludes around $5 million of FASB Statement No. 123(R) – related expenses and previously disclosed non-recurring restructuring charges of roughly $18 million.