Philip Carter in two short years has helped push the accounting department at Skyworks Solutions Inc. further into the digital age, just as he did in his previous role at Broadcom Inc.
The parallel is one of many the two tech companies share as Skyworks’ executive team in Irvine aims to replicate the success of Orange County’s most prominent legacy chipmaker; an effort that now includes an expansion into Broadcom’s former headquarters near the University of California-Irvine.
When the OC native in August 2008 took a position leading Broadcom’s technical accounting department, the Irvine-based company generated about $4 billion in annual revenue at that time.
When it was acquired for $37 billion in 2016 by Singapore’s Avago Technologies, Broadcom had doubled the top line to a record $8.4 billion.
“The team I have,” said Carter, referencing about 10 finance colleagues he brought to Skyworks, “has been through that.”
“We know what it takes to be an $8 billion company that buys a bunch of other companies.”
Carter was the recipient of the Corporate Controller award on Jan. 31 at the Business Journal’s 12th annual CFO of the Year Awards at Hotel Irvine (see profiles of other winners, pages 4, 6, 8 and 10).
$15B and Growing
Dealmaking has been brisk for Skyworks (Nasdaq: SWKS), which makes communication chips used in smartphones, tablets, routers, PCs and notebook computers. It has a market value of about $15 billion; shares jumped last week on news of a $2 billion stock repurchase program.
In August, the company completed a $405 million takeover of analog chip systems maker Avnera Corp., boosting wireless connectivity offerings with ultra-low power analog circuits that enable smart devices. The buy also boosts Skyworks’ presence in the artificial intelligence, Internet of Things, enterprise and auto sectors, the company said.
Skyworks grew revenue 6% to $3.8 billion in its last fiscal year ended in September.
Carter’s team has grown to about a dozen specialists.
Most are former Broadcom colleagues, though he’s also recruited talent from KPMG, Hawthorne-based Space Exploration Technologies Corp., or SpaceX, and Ingram Micro Inc., an Irvine-based technology products distributor and OC’s largest revenue generator with sales of $35.6 billion in the nine months through September.
His department at Skyworks oversees all financial and Securities and Exchange Commission reporting; general, technical and international accounting; Sarbanes-Oxley compliance; and payroll and fixed assets.
Since joining the company, Carter has implemented BlackLine software, which automates complex, manual and repetitive accounting processes; Basware, a procurement, invoicing finance software; a low-cost shared service center; and a center of excellence that provides leadership, best practices, research, support and training.
“In two years we’ve done all this,” he said.
His next initiative is just as aggressive and encompassing: implementing a companywide payroll and time system for more than 9,000 workers.
“We probably use 13 different providers globally to help on payroll,” Carter said. “We are looking to get it consolidated.”
Irvine Ties
The California State University-Fullerton alumnus sought a role at Skyworks during his transition following the Broadcom sale.
He first reached out to newly minted Chief Executive Liam Griffin after reading a story in the Business Journal on his promotion and plans to run the company in Irvine.
The two didn’t connect, but Skyworks Chief Financial officer Kris Sennesael followed up after he took the position in August 2016.
The Sennesael hiring further strengthened Skyworks’ growing OC operations, now home to nearly every top executive at the company, which has its headquarters in Woburn, Mass.
During a lunch meeting with Sennesael, Carter made a pitch that his team could help Skyworks grow and handle financial aspects related to acquisitions and other developments.
By January, Carter had been offered the vice president corporate controller position. He started work the next month.
“We’ve moved finance to Orange County,” Carter told the 700-plus attendees at the CFO of the Year Awards event.
The Business Journal last month reported Skyworks’ plans to significantly expand all parts of its local operations, not just finance, after signing a large lease near its Irvine offices.
The Apple Inc. supplier is set to occupy all of 5260 California Ave., a four-building office that totals about 91,000 square feet. It already occupies another 127,000 square feet nearby, which it is keeping.
The 5260 California building was last used by rival chipmaker Broadcom at its former sprawling operations at UCI Research Park.
Broadcom, now based in San Jose, moved its Irvine operations to the Five Point Gateway office campus last year, leaving behind a collection of buildings that are being re-leased.
The real estate developments underscore Skyworks’ growth locally. It entered the year as OC’s third largest chipmaker with 407 workers, up 15% from a year earlier, according to Business Journal data.
