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10-QPeriod: Q1 FY2023

Broadcom Inc. Quarterly Report for Q1 Ended Jan 29, 2023

Filed March 8, 2023For Securities:AVGO

Summary

Broadcom Inc. reported strong financial results for the fiscal quarter ended January 29, 2023, demonstrating significant year-over-year growth. Total net revenue surged by 16% to $8.915 billion, driven primarily by a robust increase in the Semiconductor Solutions segment, which grew 21% to $7.107 billion. The Infrastructure Software segment saw a slight decrease of 1% to $1.808 billion. Net income attributable to common stock grew substantially to $3.774 billion, or $8.80 per diluted share, up from $2.398 billion, or $5.59 per diluted share, in the prior year period. The company generated $4.036 billion in cash from operations, underscoring its strong operational performance. Broadcom also continued its commitment to returning capital to shareholders by paying $1.926 billion in dividends and repurchasing $1.188 billion of its common stock. The company highlighted the pending acquisition of VMware, Inc., expected to close in fiscal year 2023, which is subject to customary closing conditions and regulatory approvals. Management expressed confidence in the company's liquidity and ability to fund operations and strategic initiatives, including the VMware acquisition, through existing cash, operational cash flow, and committed debt financing.

Financial Statements
Beta
Revenue$8.91B
Cost of Revenue$2.91B
Gross Profit$6.00B
R&D Expenses$1.20B
SG&A Expenses$348.00M
Operating Expenses$1.90B
Operating Income$4.10B
Interest Expense$406.00M
Net Income$3.77B
EPS (Basic)$0.90
EPS (Diluted)$0.88
Shares Outstanding (Basic)4.18B
Shares Outstanding (Diluted)4.29B

Key Highlights

  • 1Total net revenue increased 16% year-over-year to $8.915 billion.
  • 2Semiconductor Solutions revenue grew 21% to $7.107 billion, driven by strong demand in server storage, networking, and broadband.
  • 3Net income attributable to common stock increased significantly to $3.774 billion ($8.80 per diluted share), up from $2.398 billion ($5.59 per diluted share) in the prior year quarter.
  • 4Operating cash flow was strong at $4.036 billion for the quarter.
  • 5The company returned $1.926 billion to shareholders through dividends and repurchased $1.188 billion of common stock.
  • 6The pending acquisition of VMware, Inc. remains on track for completion in fiscal year 2023, subject to closing conditions and regulatory approvals.
  • 7Despite a slight decrease in Infrastructure Software revenue, overall profitability and cash generation remained robust.

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