- Revenue of $11,961 million for
the first quarter, up 34 percent from the prior year
period
- Cash from operations of $4,815
million for the first quarter, less capital expenditures of
$122 million, resulted in
$4,693 million of free cash flow, or
39 percent of revenue
- GAAP net income of $1,325
million for the first quarter; Non-GAAP net income of
$5,254 million for the first
quarter
- Adjusted EBITDA of $7,156
million for the first quarter, or 60 percent of
revenue
- GAAP diluted EPS of $2.84 for
the first quarter; Non-GAAP diluted EPS of $10.99 for the first quarter
- Quarterly common stock dividend of $5.25 per share
- Repurchased and eliminated 7.7 million shares for
$8,290 million
- Fiscal 2024 annual revenue guidance of approximately
$50.0 billion including contribution
from VMware, an increase of 40 percent from the prior year
period
- Fiscal 2024 annual Adjusted EBITDA guidance of approximately
60 percent of projected revenue (1)
PALO
ALTO, Calif., March 7,
2024 /PRNewswire/ -- Broadcom Inc. (Nasdaq:
AVGO), a global technology leader that designs, develops and
supplies semiconductor and infrastructure software solutions, today
reported financial results for its first quarter of fiscal year
2024, ended February 4, 2024,
provided guidance for its fiscal year 2024 and announced its
quarterly dividend.
"We are pleased to have two strong drivers of revenue growth for
Broadcom in the first quarter and fiscal year 2024. First, our
acquisition of VMware is accelerating revenue growth in our
infrastructure software segment, as customers deploy VMware Cloud
Foundation. Second, strong demand for our networking products in AI
data centers, as well as custom AI accelerators from hyperscalers,
are driving growth in our semiconductor segment," said Hock Tan,
President and CEO of Broadcom Inc. "We reiterate our fiscal year
2024 guidance for consolidated revenue of $50 billion and adjusted EBITDA of $30 billion."
"Consolidated revenue grew 34% year-over-year to $12.0 billion, including the contribution from
VMware, and was up 11% year-over-year, excluding VMware. Adjusted
EBITDA increased 26% year-over-year to $7.2
billion," said Kirsten
Spears, CFO of Broadcom Inc. "Free cash flow, excluding
restructuring in the quarter, continued to be strong at
$5.4 billion. We have started to pay
down debt, beginning with $3 billion
to date in 2024, and expect to continue to pay down debt in fiscal
year 2024."
First Quarter Fiscal Year 2024 Financial Highlights
|
|
GAAP
|
|
Non-GAAP
|
(Dollars in millions, except per share
data)
|
|
Q1 24
|
|
Q1 23
|
|
Change
|
|
Q1 24
|
|
Q1 23
|
|
Change
|
Net revenue
|
|
$
|
11,961
|
|
$
|
8,915
|
|
|
+34
|
%
|
$
|
11,961
|
|
$
|
8,915
|
|
|
+34
|
%
|
Net income
|
|
$
|
1,325
|
|
$
|
3,774
|
|
-$
|
2,449
|
|
|
$
|
5,254
|
|
$
|
4,483
|
|
+$
|
771
|
|
Earnings per common
share - diluted
|
|
$
|
2.84
|
|
$
|
8.80
|
|
-$
|
5.96
|
|
|
$
|
10.99
|
|
$
|
10.33
|
|
+$
|
0.66
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 24
|
|
Q1 23
|
|
Change
|
Cash flow from
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,815
|
|
$
|
4,036
|
|
+$
|
779
|
Adjusted
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,156
|
|
$
|
5,678
|
|
+$
|
1,478
|
Free cash
flow
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
4,693
|
|
$
|
3,933
|
|
+$
|
760
|
|
Net revenue by segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q1 24
|
|
Q1 23
|
|
Change
|
Semiconductor
solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
7,390
|
|
62
|
%
|
$
|
7,107
|
|
80
|
%
|
+4
|
%
|
Infrastructure
software
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4,571
|
|
38
|
|
|
|
1,808
|
|
20
|
|
|
+153
|
%
|
Total net
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
11,961
|
|
100
|
%
|
|
$
|
8,915
|
|
100
|
%
|
|
|
|
The Company's cash and cash equivalents at the end of the fiscal
quarter were $11,864 million,
compared to $14,189 million at the
end of the prior quarter.
During the first fiscal quarter, the Company generated
$4,815 million in cash from
operations and spent $122 million on
capital expenditures. The Company spent $8,290 million on share repurchases and
eliminations, consisting of $7,176
million in repurchases of 6.7 million shares and
$1,114 million of withholding tax
payments related to net settled equity awards that vested in the
quarter (representing approximately 1.0 million shares
withheld).
On December 29, 2023, the Company
paid a cash dividend of $5.25 per
share, totaling $2,435 million.
The differences between the Company's GAAP and non-GAAP results
are described generally under "Non-GAAP Financial Measures" below
and presented in detail in the financial reconciliation tables
attached to this release.
Fiscal Year 2024 Business Outlook
Based on current business trends and conditions, the outlook for
continuing operations for fiscal year 2024, ending November 3, 2024, including the contribution from
VMware, is expected to be as follows:
- Fiscal year 2024 revenue guidance of approximately $50.0 billion; and
- Fiscal year 2024 Adjusted EBITDA guidance of approximately 60
percent of projected revenue.
The guidance provided above is only an estimate of what the
Company believes is realizable as of the date of this release. The
Company is not readily able to provide a reconciliation of
projected Adjusted EBITDA to projected net income without
unreasonable effort. Actual results will vary from the guidance and
the variations may be material. The Company undertakes no intent or
obligation to publicly update or revise any of these projections,
whether as a result of new information, future events or otherwise,
except as required by law.
Quarterly Dividends
The Company's Board of Directors has approved a quarterly cash
dividend of $5.25 per share. The
dividend is payable on March 29, 2024
to stockholders of record at the close of business (5:00 p.m. Eastern Time) on March 21, 2024.
Financial Results Conference Call
Broadcom Inc. will host a conference call to review its
financial results for the first quarter of fiscal year 2024 and to
discuss the business outlook today at 2:15
p.m. Pacific Time.
To Listen via Internet: The conference call can be
accessed live online in the Investors section of the Broadcom
website at https://investors.broadcom.com/.
To Listen via Telephone: Preregistration is required by
the conference call operator. Please preregister at
https://register.vevent.com/register/BI6ca5b6701f3e42dfa51a334fd6672810.
Upon registering, a link to the dial-in number and unique PIN will
be emailed to the registrant.
Replay: An audio replay of the conference call can be
accessed for one year through the Investors section of Broadcom's
website at https://investors.broadcom.com/.
Non-GAAP Financial Measures
The non-GAAP measures should not be considered as a substitute
for, or superior to, measures of financial performance prepared in
accordance with GAAP. A reconciliation between GAAP and non-GAAP
financial data is included in the supplemental financial data
attached to this press release. Broadcom believes non-GAAP
financial information provides additional insight into the
Company's on-going performance. Therefore, Broadcom provides this
information to investors for a more consistent basis of comparison
and to help them evaluate the results of the Company's on-going
operations and enable more meaningful period to period
comparisons.
In addition to GAAP reporting, Broadcom provides investors with
net income, operating income, gross margin, operating expenses,
cash flow and other data on a non-GAAP basis. This non-GAAP
information excludes amortization of acquisition-related intangible
assets, stock-based compensation expense, restructuring and other
charges, acquisition-related costs, including integration costs,
non-GAAP tax reconciling adjustments, and other adjustments.
Management does not believe that these items are reflective of the
Company's underlying performance. Internally, these non-GAAP
measures are significant measures used by management for purposes
of evaluating the core operating performance of the Company,
establishing internal budgets, calculating return on investment for
development programs and growth initiatives, comparing performance
with internal forecasts and targeted business models, strategic
planning, evaluating and valuing potential acquisition candidates
and how their operations compare to the Company's operations, and
benchmarking performance externally against the Company's
competitors. The exclusion of these and other similar items from
Broadcom's non-GAAP financial results should not be interpreted as
implying that these items are non-recurring, infrequent or
unusual.
Free cash flow measures have limitations as they omit certain
components of the overall cash flow statement and do not represent
the residual cash flow available for discretionary expenditures.
Investors should not consider presentation of free cash flow
measures as implying that stockholders have any right to such cash.
Broadcom's free cash flow may not be calculated in a manner
comparable to similarly named measures used by other companies.
About Broadcom
Broadcom Inc. (NASDAQ: AVGO) is a global technology leader that
designs, develops, and supplies a broad range of semiconductor,
enterprise software and security solutions. Broadcom's
category-leading product portfolio serves critical markets
including cloud, data center, networking, broadband, wireless,
storage, industrial, and enterprise software. Our solutions include
service provider and enterprise networking and storage, mobile
device and broadband connectivity, mainframe, cybersecurity, and
private and hybrid cloud infrastructure. Broadcom is a Delaware corporation headquartered in
Palo Alto, CA. For more
information, go to www.broadcom.com.
Cautionary Note Regarding Forward-Looking
Statements
This announcement contains forward-looking statements (including
within the meaning of Section 21E of the United States Securities
Exchange Act of 1934, as amended, and Section 27A of the United
States Securities Act of 1933, as amended) concerning Broadcom.
These statements include, but are not limited to, statements that
address our expected future business and financial performance, and
other statements identified by words such as "will," "expect,"
"believe," "anticipate," "estimate," "should," "intend," "plan,"
"potential," "predict," "project," "aim," and similar words,
phrases or expressions. These forward-looking statements are based
on current expectations and beliefs of Broadcom's management,
current information available to Broadcom's management, and current
market trends and market conditions and involve risks and
uncertainties that may cause actual results to differ materially
from those contained in forward-looking statements. Accordingly,
undue reliance should not be placed on such statements.
Particular uncertainties that could materially affect future
results include risks associated with: global economic conditions
and concerns; government regulations and administrative
proceedings, trade restrictions and trade tensions; global
political and economic conditions; our acquisition of VMware, Inc.,
including employee retention, unexpected costs, charges or
expenses, and our ability to successfully integrate VMware's
business and realize the expected benefits; any acquisitions or
dispositions we may make, including our acquisition of VMware, such
as delays, challenges and expenses associated with receiving
governmental and regulatory approvals and satisfying other closing
conditions, and with integrating acquired businesses with our
existing businesses and our ability to achieve the benefits, growth
prospects and synergies expected by such acquisitions; dependence
on and risks associated with distributors and resellers of our
products; our significant indebtedness and the need to generate
sufficient cash flows to service and repay such debt; dependence on
senior management and our ability to attract and retain qualified
personnel; our ability to protect against cyber security threats
and a breach of security systems; cyclicality in the semiconductor
industry or in our target markets; any loss of our significant
customers and fluctuations in the timing and volume of significant
customer demand; our dependence on contract manufacturing and
outsourced supply chain; our dependency on a limited number of
suppliers; our ability to accurately estimate customers' demand and
adjust our manufacturing and supply chain accordingly; our ability
to continue achieving design wins with our customers, as well as
the timing of any design wins; prolonged disruptions of our or our
contract manufacturers' manufacturing facilities, warehouses or
other significant operations; our ability to improve our
manufacturing efficiency and quality; involvement in legal
proceedings; demand for our data center virtualization products;
customer and market acceptance of our products and services;
compatibility of our software products with operating environments,
platforms or third-party products; our ability to enter into
satisfactory software license agreements; availability of
third-party software used in our products; use of open source
software in our products; ability of our software products to
manage and secure IT infrastructures and environments; sales to
government customers; our ability to manage products and services
lifecycles; quarterly and annual fluctuations in operating results;
our competitive performance; our ability to maintain or improve
gross margin; our ability to protect our intellectual property and
the unpredictability of any associated litigation expenses; any
expenses or reputational damage associated with resolving customer
product warranty and indemnification claims, or other undetected
defects or bugs; our ability to sell to new types of customers and
to keep pace with technological advances; our compliance with
privacy and data security laws; fluctuations in foreign exchange
rates; our provision for income taxes and overall cash tax costs,
legislation that may impact our overall cash tax costs, our ability
to maintain tax concessions in certain jurisdictions and potential
tax liabilities as a result of acquiring VMware; and other events
and trends on a national, regional and global scale, including
those of a political, economic, business, competitive and
regulatory nature.
Our filings with the SEC, which are available without charge at
the SEC's website at https://www.sec.gov, discuss some of the
important risk factors that may affect our business, results of
operations and financial condition. Actual results may vary from
the estimates provided. We undertake no intent or obligation to
publicly update or revise any of the estimates and other
forward-looking statements made in this announcement, whether as a
result of new information, future events or otherwise, except as
required by law.
Contact:
Ji Yoo
Broadcom Inc.
Investor Relations
650-427-6000
investor.relations@broadcom.com
(AVGO-Q)
____________________________________________________________________________________________________________________________________________________
|
(1) The
Company is not readily able to provide a reconciliation of the
projected non-GAAP financial information presented to the relevant
projected GAAP measure without unreasonable effort.
|
BROADCOM
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
|
(IN MILLIONS, EXCEPT
PER SHARE DATA)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter
Ended
|
|
|
February
4,
|
|
October
29,
|
|
January
29,
|
|
|
2024
|
|
2023
|
|
2023
|
Net revenue
|
|
$
|
11,961
|
|
$
|
9,295
|
|
$
|
8,915
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
3,114
|
|
|
2,449
|
|
|
2,374
|
Amortization of
acquisition-related intangible assets
|
|
|
1,380
|
|
|
438
|
|
|
535
|
Restructuring
charges
|
|
|
92
|
|
|
1
|
|
|
2
|
Total cost of
revenue
|
|
|
4,586
|
|
|
2,888
|
|
|
2,911
|
Gross margin
|
|
|
7,375
|
|
|
6,407
|
|
|
6,004
|
Research and
development
|
|
|
2,308
|
|
|
1,388
|
|
|
1,195
|
Selling, general and
administrative
|
|
|
1,572
|
|
|
418
|
|
|
348
|
Amortization of
acquisition-related intangible assets
|
|
|
792
|
|
|
348
|
|
|
348
|
Restructuring and other
charges
|
|
|
620
|
|
|
13
|
|
|
10
|
Total operating
expenses
|
|
|
5,292
|
|
|
2,167
|
|
|
1,901
|
Operating
income
|
|
|
2,083
|
|
|
4,240
|
|
|
4,103
|
Interest
expense
|
|
|
(926)
|
|
|
(405)
|
|
|
(406)
|
Other income,
net
|
|
|
185
|
|
|
132
|
|
|
143
|
Income before income
taxes
|
|
|
1,342
|
|
|
3,967
|
|
|
3,840
|
Provision for income
taxes
|
|
|
68
|
|
|
443
|
|
|
66
|
Income from continuing
operations
|
|
|
1,274
|
|
|
3,524
|
|
|
3,774
|
Income from
discontinued operations, net of income taxes
|
|
|
51
|
|
|
-
|
|
|
-
|
Net income
|
|
$
|
1,325
|
|
$
|
3,524
|
|
$
|
3,774
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share:
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations
|
|
$
|
2.82
|
|
$
|
8.53
|
|
$
|
9.03
|
Income per share from
discontinued operations
|
|
|
0.11
|
|
|
-
|
|
|
-
|
Net income per
share
|
|
$
|
2.93
|
|
$
|
8.53
|
|
$
|
9.03
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
share:
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations
|
|
$
|
2.73
|
|
$
|
8.25
|
|
$
|
8.80
|
Income per share from
discontinued operations
|
|
|
0.11
|
|
|
-
|
|
|
-
|
Net income per
share
|
|
$
|
2.84
|
|
$
|
8.25
|
|
$
|
8.80
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in per share calculations:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
452
|
|
|
413
|
|
|
418
|
Diluted
|
|
|
467
|
|
|
427
|
|
|
429
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense included in continuing operations:
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
$
|
161
|
|
$
|
62
|
|
$
|
37
|
Research and
development
|
|
|
863
|
|
|
448
|
|
|
267
|
Selling, general and
administrative
|
|
|
548
|
|
|
128
|
|
|
87
|
Total stock-based
compensation expense
|
|
$
|
1,572
|
|
$
|
638
|
|
$
|
391
|
BROADCOM
INC.
|
FINANCIAL
RECONCILIATION: GAAP TO NON-GAAP - UNAUDITED
|
(IN
MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter
Ended
|
|
|
February
4,
|
|
October
29,
|
|
January
29,
|
|
|
2024
|
|
2023
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
Gross margin on GAAP
basis
|
|
$
|
7,375
|
|
$
|
6,407
|
|
$
|
6,004
|
Amortization of
acquisition-related intangible assets
|
|
|
1,380
|
|
|
438
|
|
|
535
|
Stock-based
compensation expense
|
|
|
161
|
|
|
62
|
|
|
37
|
Restructuring
charges
|
|
|
92
|
|
|
1
|
|
|
2
|
Acquisition-related
costs
|
|
|
6
|
|
|
-
|
|
|
-
|
Gross margin on
non-GAAP basis
|
|
$
|
9,014
|
|
$
|
6,908
|
|
$
|
6,578
|
|
|
|
|
|
|
|
|
|
|
Research and
development on GAAP basis
|
|
$
|
2,308
|
|
$
|
1,388
|
|
$
|
1,195
|
Stock-based
compensation expense
|
|
|
863
|
|
|
448
|
|
|
267
|
Acquisition-related
costs
|
|
|
1
|
|
|
-
|
|
|
(1)
|
Research and
development on non-GAAP basis
|
|
$
|
1,444
|
|
$
|
940
|
|
$
|
929
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense on GAAP basis
|
|
$
|
1,572
|
|
$
|
418
|
|
$
|
348
|
Stock-based
compensation expense
|
|
|
548
|
|
|
128
|
|
|
87
|
Acquisition-related
costs
|
|
|
285
|
|
|
69
|
|
|
42
|
Selling, general and
administrative expense on non-GAAP basis
|
|
$
|
739
|
|
$
|
221
|
|
$
|
219
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses on GAAP basis
|
|
$
|
5,292
|
|
$
|
2,167
|
|
$
|
1,901
|
Amortization of
acquisition-related intangible assets
|
|
|
792
|
|
|
348
|
|
|
348
|
Stock-based
compensation expense
|
|
|
1,411
|
|
|
576
|
|
|
354
|
Restructuring and other
charges
|
|
|
620
|
|
|
13
|
|
|
10
|
Acquisition-related
costs
|
|
|
286
|
|
|
69
|
|
|
41
|
Total operating
expenses on non-GAAP basis
|
|
$
|
2,183
|
|
$
|
1,161
|
|
$
|
1,148
|
|
|
|
|
|
|
|
|
|
|
Operating income on
GAAP basis
|
|
$
|
2,083
|
|
$
|
4,240
|
|
$
|
4,103
|
Amortization of
acquisition-related intangible assets
|
|
|
2,172
|
|
|
786
|
|
|
883
|
Stock-based
compensation expense
|
|
|
1,572
|
|
|
638
|
|
|
391
|
Restructuring and other
charges
|
|
|
712
|
|
|
14
|
|
|
12
|
Acquisition-related
costs
|
|
|
292
|
|
|
69
|
|
|
41
|
Operating income on
non-GAAP basis
|
|
$
|
6,831
|
|
$
|
5,747
|
|
$
|
5,430
|
|
|
|
|
|
|
|
|
|
|
Other income, net on
GAAP basis
|
|
$
|
185
|
|
$
|
132
|
|
$
|
143
|
(Gains) losses on
investments
|
|
|
(33)
|
|
|
24
|
|
|
(44)
|
Other
|
|
|
-
|
|
|
(1)
|
|
|
-
|
Other income, net on
non-GAAP basis
|
|
$
|
152
|
|
$
|
155
|
|
$
|
99
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes on GAAP basis
|
|
$
|
68
|
|
$
|
443
|
|
$
|
66
|
Non-GAAP tax
reconciling adjustments
|
|
|
735
|
|
|
244
|
|
|
574
|
Provision for income
taxes on non-GAAP basis
|
|
$
|
803
|
|
$
|
687
|
|
$
|
640
|
|
|
|
|
|
|
|
|
|
|
Net income on GAAP
basis
|
|
$
|
1,325
|
|
$
|
3,524
|
|
$
|
3,774
|
Amortization of
acquisition-related intangible assets
|
|
|
2,172
|
|
|
786
|
|
|
883
|
Stock-based
compensation expense
|
|
|
1,572
|
|
|
638
|
|
|
391
|
Restructuring and other
charges
|
|
|
712
|
|
|
14
|
|
|
12
|
Acquisition-related
costs
|
|
|
292
|
|
|
69
|
|
|
41
|
(Gains) losses on
investments
|
|
|
(33)
|
|
|
24
|
|
|
(44)
|
Other
|
|
|
-
|
|
|
(1)
|
|
|
-
|
Non-GAAP tax
reconciling adjustments
|
|
|
(735)
|
|
|
(244)
|
|
|
(574)
|
Income from
discontinued operations, net of income taxes
|
|
|
(51)
|
|
|
-
|
|
|
-
|
Net income on non-GAAP
basis
|
|
$
|
5,254
|
|
$
|
4,810
|
|
$
|
4,483
|
|
|
|
|
|
|
|
|
|
|
Net income on GAAP
basis
|
|
$
|
1,325
|
|
$
|
3,524
|
|
$
|
3,774
|
Non-GAAP
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
acquisition-related intangible assets
|
|
|
2,172
|
|
|
786
|
|
|
883
|
Stock-based
compensation expense
|
|
|
1,572
|
|
|
638
|
|
|
391
|
Restructuring and other
charges
|
|
|
712
|
|
|
14
|
|
|
12
|
Acquisition-related
costs
|
|
|
292
|
|
|
69
|
|
|
41
|
(Gains) losses on
investments
|
|
|
(33)
|
|
|
24
|
|
|
(44)
|
Other
|
|
|
-
|
|
|
(1)
|
|
|
-
|
Non-GAAP tax
reconciling adjustments
|
|
|
(735)
|
|
|
(244)
|
|
|
(574)
|
Income from
discontinued operations, net of income taxes
|
|
|
(51)
|
|
|
-
|
|
|
-
|
Other
Adjustments:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
926
|
|
|
405
|
|
|
406
|
Provision
for income taxes on non-GAAP basis
|
|
|
803
|
|
|
687
|
|
|
640
|
Depreciation
|
|
|
139
|
|
|
124
|
|
|
127
|
Amortization of purchased intangibles and right-of-use
assets
|
|
|
34
|
|
|
22
|
|
|
22
|
Adjusted
EBITDA
|
|
$
|
7,156
|
|
$
|
6,048
|
|
$
|
5,678
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in per share calculations - diluted on GAAP basis
|
|
|
467
|
|
|
427
|
|
|
429
|
Non-GAAP adjustment
(1)
|
|
|
11
|
|
|
8
|
|
|
5
|
Weighted-average shares
used in per share calculations - diluted on non-GAAP
basis
|
|
478
|
|
|
435
|
|
|
434
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
4,815
|
|
$
|
4,828
|
|
$
|
4,036
|
Purchases of property,
plant and equipment
|
|
|
(122)
|
|
|
(105)
|
|
|
(103)
|
Free cash
flow
|
|
$
|
4,693
|
|
$
|
4,723
|
|
$
|
3,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Quarter
Ending
|
|
|
|
|
|
|
|
|
May
5,
|
|
|
|
|
|
|
Expected average
diluted share count:
|
|
2024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in per share calculation - diluted on GAAP basis
|
|
480
|
|
|
|
|
|
|
Non-GAAP adjustment
(1)
|
|
12
|
|
|
|
|
|
|
Weighted-average shares
used in per share calculation - diluted on non-GAAP
basis
|
492
|
|
|
|
|
|
|
|
(1) Non-GAAP adjustment
for the number of shares used in the diluted per share calculations
excludes the impact of stock-based compensation
expense expected to be incurred in future periods and not yet
recognized in the financial statements, which would otherwise be
assumed to be used
to repurchase shares under the GAAP treasury stock
method.
|
BROADCOM
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS - UNAUDITED
|
(IN
MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
February
4,
|
|
October
29,
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
11,864
|
|
$
|
14,189
|
|
Trade accounts
receivable, net
|
|
|
4,969
|
|
|
3,154
|
|
Inventory
|
|
|
1,920
|
|
|
1,898
|
|
Other current
assets
|
|
|
8,439
|
|
|
1,606
|
|
Total current
assets
|
|
|
27,192
|
|
|
20,847
|
|
|
|
|
|
|
|
|
|
Long-term
assets:
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
2,662
|
|
|
2,154
|
|
Goodwill
|
|
|
97,586
|
|
|
43,653
|
|
Intangible assets,
net
|
|
|
47,185
|
|
|
3,867
|
|
Other long-term
assets
|
|
|
3,245
|
|
|
2,340
|
|
Total assets
|
|
$
|
177,870
|
|
$
|
72,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,496
|
|
$
|
1,210
|
|
Employee compensation
and benefits
|
|
|
1,128
|
|
|
935
|
|
Current portion of
long-term debt
|
|
|
2,433
|
|
|
1,608
|
|
Other current
liabilities
|
|
|
15,312
|
|
|
3,652
|
|
Total current
liabilities
|
|
|
20,369
|
|
|
7,405
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
73,468
|
|
|
37,621
|
|
Other long-term
liabilities
|
|
|
13,749
|
|
|
3,847
|
|
Total
liabilities
|
|
|
107,586
|
|
|
48,873
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Preferred
stock
|
|
|
-
|
|
|
-
|
|
Common stock
|
|
|
-
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
70,077
|
|
|
21,099
|
|
Retained
earnings
|
|
|
-
|
|
|
2,682
|
|
Accumulated other
comprehensive income
|
|
|
207
|
|
|
207
|
|
Total stockholders'
equity
|
|
|
70,284
|
|
|
23,988
|
|
Total
liabilities and equity
|
|
$
|
177,870
|
|
$
|
72,861
|
|
BROADCOM
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
|
(IN
MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter
Ended
|
|
|
|
February
4,
|
|
October
29,
|
|
January
29,
|
|
|
|
2024
|
|
2023
|
|
2023
|
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,325
|
|
$
|
3,524
|
|
$
|
3,774
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible and right-of-use assets
|
|
|
2,206
|
|
|
808
|
|
|
905
|
|
Depreciation
|
|
|
139
|
|
|
124
|
|
|
127
|
|
Stock-based
compensation
|
|
|
1,582
|
|
|
638
|
|
|
391
|
|
Deferred taxes and
other non-cash taxes
|
|
|
(294)
|
|
|
639
|
|
|
(573)
|
|
Non-cash interest
expense
|
|
|
102
|
|
|
34
|
|
|
32
|
|
Other
|
|
|
38
|
|
|
27
|
|
|
(39)
|
|
Changes in assets and
liabilities, net of acquisitions and disposals:
|
|
|
|
|
|
|
|
|
|
|
Trade accounts
receivable, net
|
|
|
1,756
|
|
|
(231)
|
|
|
(276)
|
|
Inventory
|
|
|
(14)
|
|
|
(56)
|
|
|
26
|
|
Accounts
payable
|
|
|
(74)
|
|
|
215
|
|
|
(80)
|
|
Employee
compensation and benefits
|
|
|
(660)
|
|
|
103
|
|
|
(657)
|
|
Other current
assets and current liabilities
|
|
|
(2,182)
|
|
|
(694)
|
|
|
570
|
|
Other long-term
assets and long-term liabilities
|
|
|
891
|
|
|
(303)
|
|
|
(164)
|
|
Net cash provided by
operating activities
|
|
|
4,815
|
|
|
4,828
|
|
|
4,036
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
Acquisitions of
businesses, net of cash acquired
|
|
|
(25,416)
|
|
|
(36)
|
|
|
-
|
|
Purchases of property,
plant and equipment
|
|
|
(122)
|
|
|
(105)
|
|
|
(103)
|
|
Purchases of
investments
|
|
|
(13)
|
|
|
(58)
|
|
|
-
|
|
Sales of
investments
|
|
|
89
|
|
|
154
|
|
|
-
|
|
Other
|
|
|
(15)
|
|
|
(79)
|
|
|
-
|
|
Net cash used in
investing activities
|
|
|
(25,477)
|
|
|
(124)
|
|
|
(103)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term
borrowings
|
|
|
30,010
|
|
|
-
|
|
|
-
|
|
Payments on debt
obligations
|
|
|
(934)
|
|
|
(143)
|
|
|
(260)
|
|
Payments of
dividends
|
|
|
(2,435)
|
|
|
(1,904)
|
|
|
(1,926)
|
|
Repurchases of common
stock - repurchase program
|
|
|
(7,176)
|
|
|
(123)
|
|
|
(1,188)
|
|
Shares repurchased for
tax withholdings on vesting of equity awards
|
|
|
(1,114)
|
|
|
(454)
|
|
|
(333)
|
|
Issuance of common
stock
|
|
|
-
|
|
|
59
|
|
|
-
|
|
Other
|
|
|
(14)
|
|
|
(5)
|
|
|
5
|
|
Net cash provided by
(used in) financing activities
|
|
|
18,337
|
|
|
(2,570)
|
|
|
(3,702)
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and
cash equivalents
|
|
|
(2,325)
|
|
|
2,134
|
|
|
231
|
|
Cash and cash
equivalents at beginning of period
|
|
|
14,189
|
|
|
12,055
|
|
|
12,416
|
|
Cash and cash
equivalents at end of period
|
|
$
|
11,864
|
|
$
|
14,189
|
|
$
|
12,647
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
750
|
|
$
|
397
|
|
$
|
361
|
|
Cash paid for income
taxes
|
|
$
|
904
|
|
$
|
191
|
|
$
|
273
|
|
View original
content:https://www.prnewswire.com/news-releases/broadcom-inc-announces-first-quarter-fiscal-year-2024-financial-results-and-quarterly-dividend-302083486.html
SOURCE Broadcom Inc.