By Maria Armental 
 

Chip maker Broadcom Inc. reported second-quarter results on Thursday. Here's what you need to know:

PROFIT: Net income fell to $563 million, or $1.17 a share, from $691 million, or $1.64 a share, a year earlier. On an adjusted basis, profit fell to $5.14 a share from $5.21 a share, a year earlier. Analysts surveyed by FactSet expected profit to fall to about 93 cents a share, or $5.14 a share on an adjusted basis.

REVENUE: Revenue rose to $5.74 billion from $5.52 billion a year earlier, driven by a 21% increase in infrastructure software revenue that offset a 2% decline from its core semiconductor solutions business. Analysts expected about $5.69 billion, roughly in line with Broadcom's March projection.

PANDEMIC: "Second quarter results were in-line with our expectations, and saw limited impact from the effects of COVID-19," Chief Executive Hock Tan said in a statement. "Looking ahead, our third quarter guidance for semiconductors reflects a surge in demand from cloud, telecom and enterprise customers, offset by supply chain constraints and an expected substantial reset in wireless. We remain focused on investing in our diverse set of mission critical semiconductor and software franchises, while carefully managing our expenses in this uncertain environment."

OUTLOOK: This quarter, Broadcom expects about $5.75 billion in revenue, compared with analysts' projected $5.79 billion.

FCF: Broadcom generated a record free cash flow of $3.07 billion. "Given our strong free cash flow generation, healthy balance sheet and enhanced liquidity position, we remain committed to maintaining our dividend while we navigate these unprecedented times," Chief Financial Officer Tom Krause said in a statement.

Write to Maria Armental at maria.armental@wsj.com

(END) Dow Jones Newswires

June 04, 2020 16:41 ET (20:41 GMT)