Broadcom(AVGO)2025-03-12 20:38Financial Performance - Total net revenue for the fiscal quarter ended February 2, 2025, was $14,916 million, a 25% increase from $11,961 million for the fiscal quarter ended February 4, 2024[96]. - Semiconductor solutions segment revenue increased by 11% to $8,212 million, while infrastructure software segment revenue surged by 47% to $6,704 million compared to the prior year[100]. - Total operating income reached $6,260 million, a significant increase of 201% compared to $2,083 million in the previous fiscal quarter[110]. Profitability Metrics - Gross margin for the fiscal quarter ended February 2, 2025, was $10,145 million, representing 68% of net revenue, up from 62% in the prior year[101][102]. - Operating income for the semiconductor solutions segment increased to $4,706 million, a 14% increase from $4,116 million in the prior year[110]. - Infrastructure software segment operating income rose to $5,122 million, an 89% increase from $2,715 million year-over-year[110]. Expenses and Cost Management - Research and development expenses decreased by $55 million, or 2%, to $2,253 million due to lower compensation and headcount reductions[103]. - Selling, general and administrative expenses decreased by $623 million, or 40%, to $949 million, primarily due to lower compensation and reduced acquisition-related costs[104]. - Amortization of acquisition-related intangible assets decreased by $281 million, or 35%, to $511 million, attributed to the full amortization of previous software acquisitions[105]. - Restructuring and other charges decreased by $448 million, or 72%, to $172 million, mainly due to lower employee termination costs related to the VMware integration[106]. Cash Flow and Liquidity - Cash generated from operations was $6,113 million, with $2,774 million paid in cash dividends during the quarter[95]. - Cash and cash equivalents totaled $9,307 million as of February 2, 2025, providing strong liquidity for operations[116]. - Net cash provided by operating activities was $6,113 million, an increase of $1,298 million compared to $4,815 million in the prior year[125]. Customer Concentration and Risks - A single distributor accounted for 29% of net revenue for the fiscal quarter ended February 2, 2025, highlighting significant customer concentration risks[97]. Debt and Interest - Interest expense decreased to $873 million from $926 million, attributed to reduced outstanding debt balances and lower effective interest rates[112]. - Other income, net, fell to $103 million from $185 million, mainly due to lower interest income from a reduced invested balance[113]. Shareholder Returns - Cash dividends declared increased to $2,774 million, up from $2,435 million, with dividends per share rising to $0.590 from $0.525[123]. Working Capital - Working capital decreased significantly to $80 million from $2,898 million, driven by increased short-term debt and other current liabilities[121].