Summary by Futu AI
Broadcom Inc. responded to the U.S. Securities and Exchange Commission (SEC) on March 7, 2024, regarding concerns raised about its financial reporting. The SEC's correspondence, dated January 30, 2024, highlighted issues with Broadcom's presentation of non-GAAP financial measures in its filings. Specifically, the SEC noted that Broadcom did not give equal or greater prominence to the most directly comparable GAAP measures, such as Net Income and Net Income Margin, alongside non-GAAP measures like Adjusted EBITDA and Adjusted EBITDA Margin. Additionally, the SEC pointed out that Broadcom's non-GAAP reconciliations began with non-GAAP Net Income instead of the GAAP Net Income. Broadcom has since filed a Current Report on Form 8-K, including an earnings release for the fiscal quarter ended February 4, 2024, where it addressed the SEC's concerns by presenting GAAP measures with equal or greater prominence and beginning non-GAAP reconciliations with GAAP Net Income. The company has committed to maintaining these practices in future filings.
