Broadcom lifts revenues in Q2 in-line with guidance, sees similar performance for Q3

News General Global 5 JUN 2020
Broadcom lifts revenues in Q2 in-line with guidance, sees similar performance for Q3
Broadcom reported results in line with guidance for its fiscal second quarter to 3 May, with CEO Hock Tan talking about a “limited” impact from the coronavirus pandemic. The company said it sees similar figures so far for its fiscal third quarter, with the surge in demand from cloud, telecom and enterprise customers unfortunately offset by supply chain constraints and a substantial reset at mobile. “We remain focused on investing in our diverse set of mission critical semiconductor and software franchises, while carefully managing our expenses in this uncertain environment,” Tan said. 

CFO Tom Krause said the company remains committed meanwhile to maintaining its dividend, helped by a record quarterly free cash flow of over USD 3 billion. The company ended the quarter with over USD 9 billion of cash and will pay a cash dividend of USD 3.25 per share, unchanged from the previous quarter. 

Revenues for Q2 rose 4 percent from the year before to USD 5.742 billion while the adjusted EBITDA lifted to USD 3.209 billion from 3.114 billion. The net profit declined to USD 563 million from 691 million, with diluted earnings per share going to USD 1.17 from 1.64. Looking at the different segments, infrastructure software revenues advanced 21 percent to USD 1.715 billion while at semiconductor solutions, they slipped 2 percent to USD 4.027 billion. The operating cash flow went higher to USD 3.213 billion from 2.667 billion, pushing the free cash flow up to USD 3.065 billion from 2.542 billion and the company’s cash position to 9.207 billion from 6.444 billion.

For Q3, Broadcom sees revenues at USD 5.75 billion, plus or minus USD 150 million, with the adjuted EBITDA at USD 3.220 billion, plus or minus USD 750 million.

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