Broadcom Inc. (Broadcom) has released its financial results for the fiscal quarter and two fiscal quarters ended May 5, 2024. The company reported a net revenue increase of 43% to $12.487 billion for the quarter and 39% to $24.448 billion for the two quarters year-over-year. This growth was attributed to strong product demand in the semiconductor solutions segment and contributions from the recently acquired VMware. However, operating income declined by 26% to $2.965 billion for the quarter and 38% to $5.048 billion for the two quarters compared to the same periods in the previous year, primarily due to higher amortization of acquisition-related intangible assets, stock-based compensation expense, and restructuring charges associated with the VMware merger. Gross margin as a percentage of net revenue decreased to 62% from...Show More

Broadcom Inc. (Broadcom) has released its financial results for the fiscal quarter and two fiscal quarters ended May 5, 2024. The company reported a net revenue increase of 43% to $12.487 billion for the quarter and 39% to $24.448 billion for the two quarters year-over-year. This growth was attributed to strong product demand in the semiconductor solutions segment and contributions from the recently acquired VMware. However, operating income declined by 26% to $2.965 billion for the quarter and 38% to $5.048 billion for the two quarters compared to the same periods in the previous year, primarily due to higher amortization of acquisition-related intangible assets, stock-based compensation expense, and restructuring charges associated with the VMware merger. Gross margin as a percentage of net revenue decreased to 62% from 70% for the quarter and from 69% to 62% for the two quarters, year-over-year. The company also reported restructuring charges of $345 million for the quarter and $1.057 billion for the two quarters, mainly related to employee termination costs from the VMware integration. Broadcom declared a quarterly cash dividend of $5.25 per share and announced a ten-for-one forward stock split to take effect in July 2024. Looking ahead, Broadcom expects to complete the restructuring activities by the end of fiscal year 2025 and anticipates the sale of VMware's end-user computing business for approximately $3.8 billion, subject to customary closing conditions.