By Emon Reiser
Shares of Skyworks Solutions slid after the Apple supplier said tougher competition for the iPhone maker's semiconductor business would cut into sales this year.
The company on Wednesday also named a new chief executive and said it would spend $2 billion to buy back shares.
The stock retreated 23% to $66.35 in after-hours trading. The shares are down 16% in the last year.
Skyworks said it expected their share of the business to supply Apple with radio frequency components would decline by 20% to 25%. Apple is Skyworks' largest customer.
"We developed really high-performance RF solutions. And unfortunately, we didn't really get what we targeted," Chief Financial Officer Kris Sennesael told investors on an earnings call. "And that's a little bit of a setback."
The company said the decline will lead to lower revenue in the fourth quarter and the current fiscal year. Skyworks didn't identify the other company that is now supplying Apple.
Skyworks also named Philip Brace its next chief executive officer, effective Feb. 17. Brace will succeed Liam Griffin, who is retiring. Brace was most recently CEO of Inseego, a 5G mobile company.
Write to Emon Reiser at emon.reiser@wsj.com
(END) Dow Jones Newswires
February 05, 2025 18:56 ET (23:56 GMT)
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