- Revenue of $8,733 million for
the second quarter, up 8 percent from the prior year
period
- Adjusted EBITDA of $5,686
million for the second quarter
- Non-GAAP diluted EPS of $10.32
for the second quarter; GAAP diluted EPS of $8.15 for the second quarter
- Quarterly common stock dividend of $4.60 per share
- Repurchased and eliminated 5.6 million shares for
$3,420 million
- Third quarter revenue guidance of approximately $8.85 billion, an increase of 5 percent from the
prior year period
- Third quarter Adjusted EBITDA guidance of approximately 65
percent of projected revenue (1)
SAN
JOSE, Calif., June 1, 2023
/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 second quarter of fiscal year 2023, ended
April 30, 2023, provided guidance for
the third quarter of its fiscal year 2023 and announced its
quarterly dividend.
"Broadcom's second quarter results were driven by demand for
next generation technologies from hyperscale, while enterprise and
service providers continued to sustain," said Hock Tan, President
and CEO of Broadcom Inc. "Our third quarter outlook projects
year-over-year growth, reflecting continued leadership in
networking as we support a measured ramp into large scale AI
networks."
"Consolidated revenue grew 8% year-over-year to $8.7 billion and adjusted EBITDA margin increased
year-over-year to 65%," said Kirsten
Spears, CFO of Broadcom Inc. "We generated $4.4 billion in free cash flow, and expect cash
flows to remain strong for Q3."
Second Quarter Fiscal Year 2023 Financial
Highlights
|
|
GAAP
|
|
Non-GAAP
|
(Dollars in millions,
except per share data)
|
|
Q2 23
|
|
Q2 22
|
|
Change
|
|
Q2 23
|
|
Q2 22
|
|
Change
|
Net revenue
|
|
$
|
8,733
|
|
$
|
8,103
|
|
|
+8 %
|
|
|
$
|
8,733
|
|
$
|
8,103
|
|
|
+8 %
|
|
Net income
|
|
$
|
3,481
|
|
$
|
2,590
|
|
+$
|
891
|
|
|
$
|
4,489
|
|
$
|
4,000
|
|
+$
|
489
|
|
Earnings per common
share - diluted
|
|
$
|
8.15
|
|
$
|
5.93
|
|
+$
|
2.22
|
|
|
$
|
10.32
|
|
$
|
9.07
|
|
+$
|
1.25
|
|
(Dollars in
millions)
|
|
Q2 23
|
|
Q2 22
|
|
Change
|
|
Cash flow from
operations
|
|
$
|
4,502
|
|
$
|
4,243
|
|
+$
|
259
|
|
Adjusted
EBITDA
|
|
$
|
5,686
|
|
$
|
5,111
|
|
+$
|
575
|
|
Free cash flow
|
|
$
|
4,380
|
|
$
|
4,158
|
|
+$
|
222
|
|
Net revenue by
segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 23
|
|
Q2 22
|
|
Change
|
Semiconductor
solutions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
6,808
|
|
78 %
|
|
|
$
|
6,229
|
|
77 %
|
|
+9 %
|
Infrastructure
software
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1,925
|
|
22
|
|
|
|
1,874
|
|
23
|
|
|
+3 %
|
Total net
revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
8,733
|
|
100 %
|
|
|
$
|
8,103
|
|
100 %
|
|
|
|
|
The Company's cash and cash equivalents at the end of the fiscal
quarter were $11,553 million,
compared to $12,647 million at the
end of the prior quarter.
During the second fiscal quarter, the Company generated
$4,502 million in cash from
operations and spent $122 million on
capital expenditures. The Company spent $3,420 million on share repurchases and
eliminations, consisting of $2,806
million in repurchases of 4.6 million shares and
$614 million of withholding tax
payments related to net settled equity awards that vested in the
quarter (representing approximately 1.0 million shares
withheld).
On March 31, 2023, the Company
paid a cash dividend of $4.60 per
share, totaling $1,914 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.
Third Quarter Fiscal Year 2023 Business Outlook
Based on current business trends and conditions, the outlook for
the third quarter of fiscal year 2023, ending July 30, 2023, is expected to be as
follows:
- Third quarter revenue guidance of approximately $8.85 billion; and
- Third quarter Adjusted EBITDA guidance of approximately 65
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 $4.60 per share. The
dividend is payable on June 30, 2023
to stockholders of record at the close of business (5:00 p.m. Eastern Time) on June 22, 2023.
Financial Results Conference Call
Broadcom Inc. will host a conference call to review its
financial results for the second quarter fiscal year 2023 and to
discuss the business outlook, today at 2:00
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/BI477cd40fc5ac48df90bd808feab60734.
Upon registering, you will be emailed a link to the dial-in number
and unique PIN.
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, impairment
and disposal charges, acquisition-related costs, including
integration costs, purchase accounting effect on inventory,
litigation settlements, loss on debt extinguishment, gains (losses)
on investments, income (loss) from discontinued operations,
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 Inc.
Broadcom Inc. (NASDAQ: AVGO), a Delaware corporation headquartered in
San Jose, CA, is a global
technology leader that designs, develops and supplies a broad range
of semiconductor and infrastructure software solutions. Broadcom's
category-leading product portfolio serves critical markets
including data center, networking, enterprise software, broadband,
wireless, storage and industrial. Our solutions include data center
networking and storage, enterprise, mainframe and cyber security
software focused on automation, monitoring and security, smartphone
components, telecoms and factory automation. For more information,
go to https://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, our
plans and expectations with regard to our share repurchases, 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 the management of Broadcom,
as well as assumptions made by and information currently available
to such management, current market trends and market conditions and
involve risks and uncertainties, many of which are outside the
Company's and management's control and may cause actual results to
differ materially from those contained in forward-looking
statements. Accordingly, you should not place undue reliance on
such statements.
Particular uncertainties that could materially affect future
results include risks associated with: global economic conditions
and concerns; 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;
government regulations and administrative proceedings, trade
restrictions and trade tensions; global political and economic
conditions; our significant indebtedness and the need to generate
sufficient cash flows to service and repay such debt; the amount
and frequency of our share repurchase programs; dependence on and
risks associated with distributors and resellers of our products;
dependence on senior management and our ability to attract and
retain qualified personnel; failing to complete or realize the
expected benefits of our acquisition of VMware, Inc.; any
acquisitions 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; involvement
in legal proceedings; quarterly and annual fluctuations in
operating results; our ability to accurately estimate customers'
demand and adjust our manufacturing and supply chain accordingly;
our competitive performance and 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; our dependence on outsourced service providers for certain
key business services and their ability to execute to our
requirements; our ability to protect against cyber security threats
and a breach of security systems; our ability to maintain or
improve gross margin; our ability to protect our intellectual
property and the unpredictability of any associated litigation
expenses; 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
code sources in our products; any expenses or reputational damage
associated with resolving customer product warranty and
indemnification claims; market acceptance of the end products into
which our products are designed; our ability to sell to new types
of customers and to keep pace with technological advances; our
compliance with privacy and data security laws; the COVID-19
pandemic; fluctuations in foreign exchange rates; our provision for
income taxes and overall cash tax costs, legislation that may
impact our overall cash tax costs and our ability to maintain tax
concessions in certain jurisdictions; and other events and trends
on a national, regional and global scale, including those of a
political, economic, business, competitive and regulatory nature.
We are not obligated to repurchase any specific amount of shares of
common stock, and the stock repurchase programs may be suspended or
terminated at any time.
Our filings with the SEC, which you may obtain for free at the
SEC's website at http://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
408-433-8000
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
|
|
Two Fiscal Quarters
Ended
|
|
|
April
30,
|
|
January
29,
|
|
May
1,
|
|
April
30,
|
|
May
1,
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net revenue
|
|
$
|
8,733
|
|
$
|
8,915
|
|
$
|
8,103
|
|
$
|
17,648
|
|
$
|
15,809
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
2,177
|
|
|
2,374
|
|
|
1,956
|
|
|
4,551
|
|
|
3,881
|
Amortization of
acquisition-related intangible assets
|
|
|
441
|
|
|
535
|
|
|
707
|
|
|
976
|
|
|
1,437
|
Restructuring
charges
|
|
|
-
|
|
|
2
|
|
|
1
|
|
|
2
|
|
|
3
|
Total cost of
revenue
|
|
|
2,618
|
|
|
2,911
|
|
|
2,664
|
|
|
5,529
|
|
|
5,321
|
Gross margin
|
|
|
6,115
|
|
|
6,004
|
|
|
5,439
|
|
|
12,119
|
|
|
10,488
|
Research and
development
|
|
|
1,312
|
|
|
1,195
|
|
|
1,261
|
|
|
2,507
|
|
|
2,467
|
Selling, general and
administrative
|
|
|
438
|
|
|
348
|
|
|
368
|
|
|
786
|
|
|
689
|
Amortization of
acquisition-related intangible assets
|
|
|
348
|
|
|
348
|
|
|
398
|
|
|
696
|
|
|
795
|
Restructuring,
impairment and disposal charges
|
|
|
9
|
|
|
10
|
|
|
18
|
|
|
19
|
|
|
35
|
Total operating
expenses
|
|
|
2,107
|
|
|
1,901
|
|
|
2,045
|
|
|
4,008
|
|
|
3,986
|
Operating
income
|
|
|
4,008
|
|
|
4,103
|
|
|
3,394
|
|
|
8,111
|
|
|
6,502
|
Interest
expense
|
|
|
(405)
|
|
|
(406)
|
|
|
(518)
|
|
|
(811)
|
|
|
(925)
|
Other income (expense),
net
|
|
|
113
|
|
|
143
|
|
|
(86)
|
|
|
256
|
|
|
(100)
|
Income before income
taxes
|
|
|
3,716
|
|
|
3,840
|
|
|
2,790
|
|
|
7,556
|
|
|
5,477
|
Provision for income
taxes
|
|
|
235
|
|
|
66
|
|
|
200
|
|
|
301
|
|
|
415
|
Net income
|
|
|
3,481
|
|
|
3,774
|
|
|
2,590
|
|
|
7,255
|
|
|
5,062
|
Dividends on preferred
stock
|
|
|
-
|
|
|
-
|
|
|
(75)
|
|
|
-
|
|
|
(149)
|
Net income attributable
to common stock
|
|
$
|
3,481
|
|
$
|
3,774
|
|
$
|
2,515
|
|
$
|
7,255
|
|
$
|
4,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income per share
attributable to common stock:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
8.39
|
|
$
|
9.03
|
|
$
|
6.16
|
|
$
|
17.40
|
|
$
|
11.98
|
Diluted
(1)
|
|
$
|
8.15
|
|
$
|
8.80
|
|
$
|
5.93
|
|
$
|
16.95
|
|
$
|
11.53
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in per share calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
415
|
|
|
418
|
|
|
408
|
|
|
417
|
|
|
410
|
Diluted
(1)
|
|
|
427
|
|
|
429
|
|
|
424
|
|
|
428
|
|
|
426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
$
|
50
|
|
$
|
37
|
|
$
|
36
|
|
$
|
87
|
|
$
|
72
|
Research and
development
|
|
|
354
|
|
|
267
|
|
|
261
|
|
|
621
|
|
|
529
|
Selling, general and
administrative
|
|
|
109
|
|
|
87
|
|
|
89
|
|
|
196
|
|
|
172
|
Total stock-based
compensation expense
|
|
$
|
513
|
|
$
|
391
|
|
$
|
386
|
|
$
|
904
|
|
$
|
773
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes the
potentially dilutive effect of Mandatory Convertible Preferred
Stock for the fiscal quarter and
two fiscal quarters ended May 1, 2022 as the impact was
antidilutive. All outstanding shares of Mandatory
Convertible Preferred Stock were converted into our common stock
during the fiscal quarter ended October 30,
2022.
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADCOM
INC.
|
FINANCIAL
RECONCILIATION: GAAP TO NON-GAAP - UNAUDITED
|
(IN
MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter
Ended
|
|
Two Fiscal Quarters
Ended
|
|
|
April
30,
|
|
January
29,
|
|
|
May
1,
|
|
April
30,
|
|
May
1,
|
|
|
2023
|
|
2023
|
|
|
2022
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross margin on GAAP
basis
|
|
$
|
6,115
|
|
$
|
6,004
|
|
|
$
|
5,439
|
|
$
|
12,119
|
|
$
|
10,488
|
Amortization of
acquisition-related intangible assets
|
|
|
441
|
|
|
535
|
|
|
|
707
|
|
|
976
|
|
|
1,437
|
Stock-based
compensation expense
|
|
|
50
|
|
|
37
|
|
|
|
36
|
|
|
87
|
|
|
72
|
Restructuring
charges
|
|
|
-
|
|
|
2
|
|
|
|
1
|
|
|
2
|
|
|
3
|
Acquisition-related
costs
|
|
|
-
|
|
|
-
|
|
|
|
3
|
|
|
-
|
|
|
7
|
Gross margin on
non-GAAP basis
|
|
$
|
6,606
|
|
$
|
6,578
|
|
|
$
|
6,186
|
|
$
|
13,184
|
|
$
|
12,007
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and
development on GAAP basis
|
|
$
|
1,312
|
|
$
|
1,195
|
|
|
$
|
1,261
|
|
$
|
2,507
|
|
$
|
2,467
|
Stock-based
compensation expense
|
|
|
354
|
|
|
267
|
|
|
|
261
|
|
|
621
|
|
|
529
|
Acquisition-related
costs
|
|
|
-
|
|
|
(1)
|
|
|
|
-
|
|
|
(1)
|
|
|
-
|
Research and
development on non-GAAP basis
|
|
$
|
958
|
|
$
|
929
|
|
|
$
|
1,000
|
|
$
|
1,887
|
|
$
|
1,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense on GAAP basis
|
|
$
|
438
|
|
$
|
348
|
|
|
$
|
368
|
|
$
|
786
|
|
$
|
689
|
Stock-based
compensation expense
|
|
|
109
|
|
|
87
|
|
|
|
89
|
|
|
196
|
|
|
172
|
Acquisition-related
costs
|
|
|
93
|
|
|
42
|
|
|
|
32
|
|
|
135
|
|
|
43
|
Selling, general and
administrative expense on non-GAAP basis
|
|
$
|
236
|
|
$
|
219
|
|
|
$
|
247
|
|
$
|
455
|
|
$
|
474
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses on GAAP basis
|
|
$
|
2,107
|
|
$
|
1,901
|
|
|
$
|
2,045
|
|
$
|
4,008
|
|
$
|
3,986
|
Amortization of
acquisition-related intangible assets
|
|
|
348
|
|
|
348
|
|
|
|
398
|
|
|
696
|
|
|
795
|
Stock-based
compensation expense
|
|
|
463
|
|
|
354
|
|
|
|
350
|
|
|
817
|
|
|
701
|
Restructuring,
impairment and disposal charges
|
|
|
9
|
|
|
10
|
|
|
|
18
|
|
|
19
|
|
|
35
|
Acquisition-related
costs
|
|
|
93
|
|
|
41
|
|
|
|
32
|
|
|
134
|
|
|
43
|
Total operating
expenses on non-GAAP basis
|
|
$
|
1,194
|
|
$
|
1,148
|
|
|
$
|
1,247
|
|
$
|
2,342
|
|
$
|
2,412
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income on
GAAP basis
|
|
$
|
4,008
|
|
$
|
4,103
|
|
|
$
|
3,394
|
|
$
|
8,111
|
|
$
|
6,502
|
Amortization of
acquisition-related intangible assets
|
|
|
789
|
|
|
883
|
|
|
|
1,105
|
|
|
1,672
|
|
|
2,232
|
Stock-based
compensation expense
|
|
|
513
|
|
|
391
|
|
|
|
386
|
|
|
904
|
|
|
773
|
Restructuring,
impairment and disposal charges
|
|
|
9
|
|
|
12
|
|
|
|
19
|
|
|
21
|
|
|
38
|
Acquisition-related
costs
|
|
|
93
|
|
|
41
|
|
|
|
35
|
|
|
134
|
|
|
50
|
Operating income on
non-GAAP basis
|
|
$
|
5,412
|
|
$
|
5,430
|
|
|
$
|
4,939
|
|
$
|
10,842
|
|
$
|
9,595
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense on
GAAP basis
|
|
$
|
(405)
|
|
$
|
(406)
|
|
|
$
|
(518)
|
|
$
|
(811)
|
|
$
|
(925)
|
Loss on debt
extinguishment
|
|
|
-
|
|
|
-
|
|
|
|
112
|
|
|
-
|
|
|
112
|
Interest expense on
non-GAAP basis
|
|
$
|
(405)
|
|
$
|
(406)
|
|
|
$
|
(406)
|
|
$
|
(811)
|
|
$
|
(813)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (expense),
net on GAAP basis
|
|
$
|
113
|
|
$
|
143
|
|
|
$
|
(86)
|
|
$
|
256
|
|
$
|
(100)
|
(Gains) losses on
investments
|
|
|
11
|
|
|
(44)
|
|
|
|
99
|
|
|
(33)
|
|
|
115
|
Other income, net on
non-GAAP basis
|
|
$
|
124
|
|
$
|
99
|
|
|
$
|
13
|
|
$
|
223
|
|
$
|
15
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for income
taxes on GAAP basis
|
|
$
|
235
|
|
$
|
66
|
|
|
$
|
200
|
|
$
|
301
|
|
$
|
415
|
Non-GAAP tax
reconciling adjustments
|
|
|
407
|
|
|
574
|
|
|
|
346
|
|
|
981
|
|
|
641
|
Provision for income
taxes on non-GAAP basis
|
|
$
|
642
|
|
$
|
640
|
|
|
$
|
546
|
|
$
|
1,282
|
|
$
|
1,056
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income on GAAP
basis
|
|
$
|
3,481
|
|
$
|
3,774
|
|
|
$
|
2,590
|
|
$
|
7,255
|
|
$
|
5,062
|
Amortization of
acquisition-related intangible assets
|
|
|
789
|
|
|
883
|
|
|
|
1,105
|
|
|
1,672
|
|
|
2,232
|
Stock-based
compensation expense
|
|
|
513
|
|
|
391
|
|
|
|
386
|
|
|
904
|
|
|
773
|
Restructuring,
impairment and disposal charges
|
|
|
9
|
|
|
12
|
|
|
|
19
|
|
|
21
|
|
|
38
|
Acquisition-related
costs
|
|
|
93
|
|
|
41
|
|
|
|
35
|
|
|
134
|
|
|
50
|
Loss on debt
extinguishment
|
|
|
-
|
|
|
-
|
|
|
|
112
|
|
|
-
|
|
|
112
|
(Gains) losses on
investments
|
|
|
11
|
|
|
(44)
|
|
|
|
99
|
|
|
(33)
|
|
|
115
|
Non-GAAP tax
reconciling adjustments
|
|
|
(407)
|
|
|
(574)
|
|
|
|
(346)
|
|
|
(981)
|
|
|
(641)
|
Net income on non-GAAP
basis
|
|
$
|
4,489
|
|
$
|
4,483
|
|
|
$
|
4,000
|
|
$
|
8,972
|
|
$
|
7,741
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in per share calculations - diluted on GAAP basis
|
|
|
427
|
|
|
429
|
|
|
|
424
|
|
|
428
|
|
|
426
|
Non-GAAP adjustment
(1)
|
|
|
8
|
|
|
5
|
|
|
|
17
|
|
|
7
|
|
|
17
|
Weighted-average shares
used in per share calculations - diluted on non-GAAP
basis
|
|
|
435
|
|
|
434
|
|
|
|
441
|
|
|
435
|
|
|
443
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income on non-GAAP
basis
|
|
$
|
4,489
|
|
$
|
4,483
|
|
|
$
|
4,000
|
|
$
|
8,972
|
|
$
|
7,741
|
Interest
expense
|
|
|
405
|
|
|
406
|
|
|
|
406
|
|
|
811
|
|
|
813
|
Provision for income
taxes on non-GAAP basis
|
|
|
642
|
|
|
640
|
|
|
|
546
|
|
|
1,282
|
|
|
1,056
|
Depreciation
|
|
|
129
|
|
|
127
|
|
|
|
135
|
|
|
256
|
|
|
271
|
Amortization of
purchased intangibles and right-of-use assets
|
|
|
21
|
|
|
22
|
|
|
|
24
|
|
|
43
|
|
|
48
|
Adjusted
EBITDA
|
|
$
|
5,686
|
|
$
|
5,678
|
|
|
$
|
5,111
|
|
$
|
11,364
|
|
$
|
9,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
4,502
|
|
$
|
4,036
|
|
|
$
|
4,243
|
|
$
|
8,538
|
|
$
|
7,729
|
Purchases of property,
plant and equipment
|
|
|
(122)
|
|
|
(103)
|
|
|
|
(85)
|
|
|
(225)
|
|
|
(186)
|
Free cash
flow
|
|
$
|
4,380
|
|
$
|
3,933
|
|
|
$
|
4,158
|
|
$
|
8,313
|
|
$
|
7,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Quarter
Ending
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
July
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected average
diluted share count (2):
|
|
2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in per share calculation - diluted on GAAP basis
|
|
427
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustment
(1)
|
|
11
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average shares
used in per share calculation - diluted on non-GAAP
basis
|
|
438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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. In
addition, the non-GAAP adjustment includes the impact of Mandatory
Convertible
Preferred Stock that was antidilutive on a GAAP basis for the
fiscal quarter and two fiscal quarters ended May 1,
2022.
|
(2) Excludes the
effects of potential share repurchases.
|
BROADCOM
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS - UNAUDITED
|
(IN
MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
April
30,
|
|
October
30,
|
|
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
11,553
|
|
$
|
12,416
|
|
Trade accounts
receivable, net
|
|
|
3,031
|
|
|
2,958
|
|
Inventory
|
|
|
1,886
|
|
|
1,925
|
|
Other current
assets
|
|
|
1,401
|
|
|
1,205
|
|
Total current
assets
|
|
|
17,871
|
|
|
18,504
|
|
|
|
|
|
|
|
|
|
Long-term
assets:
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
2,209
|
|
|
2,223
|
|
Goodwill
|
|
|
43,614
|
|
|
43,614
|
|
Intangible assets,
net
|
|
|
5,434
|
|
|
7,111
|
|
Other long-term
assets
|
|
|
2,539
|
|
|
1,797
|
|
Total assets
|
|
$
|
71,667
|
|
$
|
73,249
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
831
|
|
$
|
998
|
|
Employee compensation
and benefits
|
|
|
634
|
|
|
1,202
|
|
Current portion of
long-term debt
|
|
|
1,117
|
|
|
440
|
|
Other current
liabilities
|
|
|
4,929
|
|
|
4,412
|
|
Total current
liabilities
|
|
|
7,511
|
|
|
7,052
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
38,194
|
|
|
39,075
|
|
Other long-term
liabilities
|
|
|
3,955
|
|
|
4,413
|
|
Total
liabilities
|
|
|
49,660
|
|
|
50,540
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Preferred
stock
|
|
|
-
|
|
|
-
|
|
Common stock
|
|
|
-
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
20,826
|
|
|
21,159
|
|
Retained
earnings
|
|
|
1,363
|
|
|
1,604
|
|
Accumulated other
comprehensive loss
|
|
|
(182)
|
|
|
(54)
|
|
Total stockholders'
equity
|
|
|
22,007
|
|
|
22,709
|
|
Total
liabilities and equity
|
|
$
|
71,667
|
|
$
|
73,249
|
|
BROADCOM
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
|
(IN
MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter
Ended
|
|
Two Fiscal Quarters
Ended
|
|
|
April
30,
|
|
January
29,
|
|
May
1,
|
|
April
30,
|
|
May
1,
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
3,481
|
|
$
|
3,774
|
|
$
|
2,590
|
|
$
|
7,255
|
|
$
|
5,062
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangible and right-of-use assets
|
|
|
810
|
|
|
905
|
|
|
1,129
|
|
|
1,715
|
|
|
2,280
|
Depreciation
|
|
|
129
|
|
|
127
|
|
|
135
|
|
|
256
|
|
|
271
|
Stock-based
compensation
|
|
|
513
|
|
|
391
|
|
|
386
|
|
|
904
|
|
|
773
|
Deferred taxes and
other non-cash taxes
|
|
|
(316)
|
|
|
(573)
|
|
|
-
|
|
|
(889)
|
|
|
70
|
Loss on debt
extinguishment
|
|
|
-
|
|
|
-
|
|
|
100
|
|
|
-
|
|
|
100
|
Non-cash interest
expense
|
|
|
33
|
|
|
32
|
|
|
33
|
|
|
65
|
|
|
65
|
Other
|
|
|
21
|
|
|
(39)
|
|
|
110
|
|
|
(18)
|
|
|
125
|
Changes in assets and
liabilities, net of acquisitions and disposals:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts
receivable, net
|
|
|
185
|
|
|
(276)
|
|
|
(536)
|
|
|
(91)
|
|
|
(1,004)
|
Inventory
|
|
|
13
|
|
|
26
|
|
|
(147)
|
|
|
39
|
|
|
(370)
|
Accounts
payable
|
|
|
(114)
|
|
|
(80)
|
|
|
(31)
|
|
|
(194)
|
|
|
(31)
|
Employee
compensation and benefits
|
|
|
91
|
|
|
(657)
|
|
|
215
|
|
|
(566)
|
|
|
(313)
|
Other current
assets and current liabilities
|
|
|
(165)
|
|
|
570
|
|
|
287
|
|
|
405
|
|
|
808
|
Other long-term
assets and long-term liabilities
|
|
|
(179)
|
|
|
(164)
|
|
|
(28)
|
|
|
(343)
|
|
|
(107)
|
Net cash provided by
operating activities
|
|
|
4,502
|
|
|
4,036
|
|
|
4,243
|
|
|
8,538
|
|
|
7,729
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisitions of
businesses, net of cash acquired
|
|
|
-
|
|
|
-
|
|
|
(225)
|
|
|
-
|
|
|
(234)
|
Purchases of property,
plant and equipment
|
|
|
(122)
|
|
|
(103)
|
|
|
(85)
|
|
|
(225)
|
|
|
(186)
|
Purchases of
investments
|
|
|
(197)
|
|
|
-
|
|
|
-
|
|
|
(197)
|
|
|
(200)
|
Other
|
|
|
1
|
|
|
-
|
|
|
-
|
|
|
1
|
|
|
1
|
Net cash used in
investing activities
|
|
|
(318)
|
|
|
(103)
|
|
|
(310)
|
|
|
(421)
|
|
|
(619)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from long-term
borrowings
|
|
|
-
|
|
|
-
|
|
|
1,935
|
|
|
-
|
|
|
1,935
|
Payments on debt
obligations
|
|
|
-
|
|
|
(260)
|
|
|
(2,097)
|
|
|
(260)
|
|
|
(2,352)
|
Payments of
dividends
|
|
|
(1,914)
|
|
|
(1,926)
|
|
|
(1,750)
|
|
|
(3,840)
|
|
|
(3,514)
|
Repurchases of common
stock - repurchase program
|
|
|
(2,806)
|
|
|
(1,188)
|
|
|
(2,776)
|
|
|
(3,994)
|
|
|
(5,500)
|
Shares repurchased for
tax withholdings on vesting of equity awards
|
|
|
(614)
|
|
|
(333)
|
|
|
(514)
|
|
|
(947)
|
|
|
(889)
|
Issuance of common
stock
|
|
|
63
|
|
|
-
|
|
|
59
|
|
|
63
|
|
|
60
|
Other
|
|
|
(7)
|
|
|
5
|
|
|
(4)
|
|
|
(2)
|
|
|
(8)
|
Net cash used in
financing activities
|
|
|
(5,278)
|
|
|
(3,702)
|
|
|
(5,147)
|
|
|
(8,980)
|
|
|
(10,268)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and
cash equivalents
|
|
|
(1,094)
|
|
|
231
|
|
|
(1,214)
|
|
|
(863)
|
|
|
(3,158)
|
Cash and cash
equivalents at beginning of period
|
|
|
12,647
|
|
|
12,416
|
|
|
10,219
|
|
|
12,416
|
|
|
12,163
|
Cash and cash
equivalents at end of period
|
|
$
|
11,553
|
|
$
|
12,647
|
|
$
|
9,005
|
|
$
|
11,553
|
|
$
|
9,005
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
397
|
|
$
|
361
|
|
$
|
459
|
|
$
|
758
|
|
$
|
699
|
Cash paid for income
taxes
|
|
$
|
891
|
|
$
|
273
|
|
$
|
240
|
|
$
|
1,164
|
|
$
|
426
|
View original
content:https://www.prnewswire.com/news-releases/broadcom-inc-announces-second-quarter-fiscal-year-2023-financial-results-and-quarterly-dividend-301840634.html
SOURCE Broadcom Inc.