Summary
Broadcom Inc. reported total net revenue of $5.858 billion for the fiscal quarter ended February 2, 2020, a slight increase from $5.789 billion in the prior year period. The company saw a decrease in its Semiconductor Solutions segment revenue, largely due to lower demand for wireless content in mobile handsets, but this was partially offset by growth in its Infrastructure Software segment, primarily driven by the recent acquisition of Symantec's enterprise security business. Operating income increased to $714 million from $555 million year-over-year. The company generated substantial cash flow from operations of $2.322 billion, reflecting strong operational performance. Significant debt financing was utilized to fund the $10.7 billion acquisition of the Symantec Business, which closed in November 2019. Key financial movements include a significant increase in total assets to $81.006 billion from $67.493 billion, largely due to goodwill and intangible assets from acquisitions. Long-term debt also increased substantially to $42.407 billion. While net income attributable to common stock decreased to $311 million ($0.74 per diluted share) from $471 million ($1.12 per diluted share) in the prior year, the company's robust cash generation and strategic acquisitions in its software segment position it for future growth, though the semiconductor segment faces headwinds.
Financial Highlights
57 data points| Revenue | $5.86B |
| Cost of Revenue | $2.59B |
| Gross Profit | $3.26B |
| R&D Expenses | $1.29B |
| SG&A Expenses | $601.00M |
| Operating Expenses | $2.55B |
| Operating Income | $714.00M |
| Interest Expense | $406.00M |
| Net Income | $385.00M |
| EPS (Basic) | $0.08 |
| EPS (Diluted) | $0.07 |
| Shares Outstanding (Basic) | 3.98B |
| Shares Outstanding (Diluted) | 4.20B |
Key Highlights
- 1Total net revenue for the quarter was $5.858 billion, a slight increase of 1% year-over-year.
- 2Infrastructure Software segment revenue increased by 19% year-over-year, driven by the acquisition of Symantec's enterprise security business.
- 3Semiconductor Solutions segment revenue decreased by 4% year-over-year, primarily due to lower demand for wireless content in mobile handsets.
- 4Operating income increased to $714 million from $555 million year-over-year, driven by higher gross margins and segment operating income growth in infrastructure software.
- 5Net cash provided by operating activities was strong at $2.322 billion.
- 6The company completed the $10.7 billion acquisition of Symantec's enterprise security business in November 2019, significantly increasing goodwill and intangible assets on the balance sheet.
- 7Total debt increased significantly to $44.663 billion as of February 2, 2020, largely due to financing the Symantec acquisition.