Summary
Broadcom Inc. (AVGO) reported strong financial results for the second quarter of fiscal year 2021, ending May 2, 2021. Total net revenue increased by 15% year-over-year to $6.61 billion, driven by a robust performance in the semiconductor solutions segment, which saw a 20% increase in revenue. The infrastructure software segment also contributed positively with a 4% revenue growth. This top-line growth translated into significant operating income improvement, up 158% to $1.98 billion, reflecting enhanced gross margins and controlled operating expenses. The company generated substantial cash flow from operations, totaling $6.68 billion for the first half of the fiscal year, underscoring its strong financial health. Broadcom continued to return capital to shareholders through dividends and also managed its debt effectively, with total debt remaining substantial but stable. The company highlighted strong demand across its product portfolio, especially for semiconductor products supporting remote work and learning, although it also noted ongoing supply chain constraints. Management expressed confidence in the company's liquidity and ability to fund operations and future growth initiatives.
Financial Highlights
55 data points| Revenue | $6.61B |
| Cost of Revenue | $2.55B |
| Gross Profit | $4.06B |
| R&D Expenses | $1.24B |
| SG&A Expenses | $325.00M |
| Operating Expenses | $2.08B |
| Operating Income | $1.98B |
| Interest Expense | $466.00M |
| Net Income | $1.49B |
| EPS (Basic) | $0.35 |
| EPS (Diluted) | $0.33 |
| Shares Outstanding (Basic) | 4.09B |
| Shares Outstanding (Diluted) | 4.29B |
Key Highlights
- 1Total net revenue for the fiscal quarter ended May 2, 2021, increased 15% year-over-year to $6.61 billion.
- 2Semiconductor solutions segment revenue grew 20% year-over-year to $4.82 billion, driven by demand for wireless content and networking/broadband products.
- 3Infrastructure software segment revenue increased 4% year-over-year to $1.79 billion.
- 4Operating income significantly increased by 158% to $1.98 billion, with gross margin improving to 61% from 55% in the prior year quarter.
- 5Cash provided by operating activities for the first half of the fiscal year was $6.68 billion, a substantial increase from $5.54 billion in the prior year period.
- 6The company maintained strong liquidity with $9.52 billion in cash and cash equivalents.
- 7Despite strong performance, the company noted ongoing supply chain constraints impacting component availability.