Broadcom reported revenues for its fiscal third quarter to July up 9 percent year-on-year and little changed on a sequential basis at USD 5.515 billion. The company said it appeared the semiconductor market had bottomed out but it's expected to remain at a low level due to the uncertain market conditions.
The group's own chip sales fell 5 percent year-on-year to USD 4.353 billion. Infrastructure software contributed USD 1.140 billion in revenue, more than double a year earlier thanks to the acquisition of CA Technologies.
Broadcom improved its gross margin to 55.0 percent in the quarter from 51.7 percent a year earlier, while the operating margin fell to 15.7 percent from 26.4. Net profit fell to USD 715 million from USD 1.196 billion, but adjusted EPS from continuing operations rose to USD 5.16 from USD 4.98 in the year-earlier period.
Adjusted free cash flow from operations rose over 8 percent to USD 2.307 billion, and Broadcom finished the quarter with a slightly higher cash position of USD 5.462 billion. The dividend was maintained at USD 2.65 per share, and the group said it would focus on reducing debt going forward in order to maintain its investment-grade credit rating after the planned acquisition of Symantec.
Broadcom maintained its outlook for full-year revenues of around USD 22.5 billion and an operating margin of 14.75 percent.
