Broadcom Ltd (NASDAQ:AVGO) Reports Q1 2018 Financial Results

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Broadcom Ltd (NASDAQ:AVGO) a major semiconductor device supplier to the wireless, enterprise storage, wired, and industrial end markets, posted financial report for its Q1 2018, closed February 4, 2018, issued projection for Q2 2018, and reported a quarterly interim dividend.

The buzz

For Q1 2018, net revenue came at $5,327 million as compared to $4,844 million in the preceding quarter. It recorded a jump of 29% from $4,139 million in the comparable quarter last year. Broadcom reported that gross margin came at $2,628 million as compared to gross margin of $2,383 million in the previous quarter. Gross margin was $2,001 million in the comparable quarter last year.

Hock Tan, the CEO and President of Broadcom, expressed that they recorded an extremely good start to their fiscal year 2018 offering first quarter earnings and revenue towards the upper end of projection. In the second quarter, they anticipate to keep topline momentum with remarkable data center demand for their enterprise storage and networking products, and a seasonal retrieval in broadband access, to counterbalance a sharp seasonal drop in wireless. Importantly, they anticipate gross margin to expand and lead free cash flow above their long term target of 40% of revenue.

Operating income came at $943 million in Q1 2018 as compared to operating income of $755 million in the prior quarter. Operating income was $506 million in the comparable quarter last year.

Broadcom’s Board of Directors has permitted a quarterly, interim cash payout of $1.75 per ordinary share. A corresponding payout will also be done by the Partnership, of which the firm is the General Partner, to owners of LP Units, in the sum of $1.75 per LP Unit. The distribution and the dividend are both payable on March 29, 2018. This payout is payable to unitholders or shareholders as of record date March 22, 2018.

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