Broadcom Inc. (Broadcom) has reported a mixed financial performance in its latest quarterly results. The company's total net revenue increased by 47% year-on-year to $13.072 billion, driven by a 200% increase in infrastructure software revenue, largely attributed to contributions from VMware following its acquisition. Semiconductor solutions revenue also saw a 5% rise. However, operating income saw a slight decrease of 2% to $3.788 billion compared to the same quarter last year. Gross margin as a percentage of net revenue declined from 69% to 64% due to higher amortization of acquisition-related intangible assets from the VMware Merger. Research and development expenses surged by 73%, and selling, general and administrative expenses by 184%, both primarily due to increased headcount and compensation following the VMware acquisition. Broadcom's cash...Show More

Broadcom Inc. (Broadcom) has reported a mixed financial performance in its latest quarterly results. The company's total net revenue increased by 47% year-on-year to $13.072 billion, driven by a 200% increase in infrastructure software revenue, largely attributed to contributions from VMware following its acquisition. Semiconductor solutions revenue also saw a 5% rise. However, operating income saw a slight decrease of 2% to $3.788 billion compared to the same quarter last year. Gross margin as a percentage of net revenue declined from 69% to 64% due to higher amortization of acquisition-related intangible assets from the VMware Merger. Research and development expenses surged by 73%, and selling, general and administrative expenses by 184%, both primarily due to increased headcount and compensation following the VMware acquisition. Broadcom's cash from operations stood at $4.963 billion, and the company paid $2.452 billion in cash dividends. The company also sold its end-user computing business to KKR & Co. Inc. for $3.5 billion and issued $5.0 billion of senior unsecured notes to repay outstanding debt. Looking ahead, Broadcom expects to complete its restructuring activities by the end of fiscal year 2025, with $361 million in restructuring charges recognized in the current quarter. The company's Board of Directors declared a quarterly cash dividend of $0.53 per share, payable on September 30, 2024. Broadcom continues to focus on its core semiconductor and infrastructure software segments, with the recent acquisition of VMware and the divestiture of the EUC business reflecting this strategy.