Skyworks Solutions Inc. saw its net income decline in the first quarter of fiscal 2018 after taking charges related to the recent U.S. tax reform, and rolled out a new stock repurchase program worth $1 billion.
The semiconductors company's net income was $70.4 million, or 38 cents diluted EPS, in the three months ended Dec. 29, 2017, compared with $257.8 million, or $1.38 diluted EPS, in the year-ago quarter.
The first-quarter results include a provision for income taxes of $315.2 million compared with $63.3 million in the year-ago period.
Skyworks said its net revenue beat estimates and rose 15% year over year to $1.05 billion in the first quarter compared with $914.3 million in the same quarter in fiscal 2017.
Liam Griffin, Skyworks president and CEO, said the increase in revenue was driven by "strong global demand for our wireless communications engines."
Operating income increased to $383.5 million, compared with $321.9 million in the year-ago quarter.
Skyworks declared a cash dividend of 32 cents per share, payable March 15 to stockholders of record Feb. 22.
For the second quarter of fiscal 2018, the company projects that revenue will rise 6% to 8% year over year.
It also raised its targeted cash return rate to shareholders to 60% to 75% from the prior range of 40% to 50% of free cash flow, after its board of directors approved the buyback of up to $1 billion of the company's common stock from time to time prior to Jan. 31, 2020.
The new buyback program will replace a $500 million stock repurchase program, which had approximately $2 million of repurchase authority remaining.
The company intends to fund this buyback program through its working capital.
