Revenue and Segment Performance - Net revenue for the fiscal quarter ended February 4, 2024 was 11,961million,a348,915 million in the prior year fiscal quarter[100] - Semiconductor solutions segment revenue increased 4% to 7,390million,drivenbystrongdemandfornetworkingproducts[100]−Infrastructuresoftwaresegmentrevenuesurged1534,571 million, primarily due to contributions from the VMware acquisition[100] - Operating income from the infrastructure software segment increased by 108% to 2,715million,drivenbycontributionsfromVMware[108]−DirectsalestoWTMicroelectronicsaccountedfor271,371 million to 7,375million,butgrossmarginpercentagedecreasedfrom672,308 million, driven by higher stock-based compensation and headcount from the VMware acquisition[102] - Selling, general and administrative expense increased 352% to 1,572million,primarilyduetohigherstock−basedcompensationandacquisition−relatedcosts[103]−Amortizationofacquisition−relatedintangibleassetsincreased128792 million, mainly from customer-related intangible assets from the VMware acquisition[104] - Restructuring and other charges were 620million,primarilyduetoemployeeterminationcostsassociatedwiththeVMwareacquisition[105]−Unallocatedexpensesincreasedby2584,748 million, primarily due to higher amortization of acquisition-related intangible assets and stock-based compensation from the VMware Merger[108] VMware Acquisition and Integration - The company completed the acquisition of VMware for approximately 30.8billionincashand54.4millionsharesofBroadcomcommonstockvaluedat53.4 billion[90] - The company is currently integrating VMware operations, control processes, and information systems into its systems and control environment[124] - The company signed a definitive agreement to sell VMware's end-user computing business for approximately 3.8billion,expectedtoclosein2024[111]Stock−BasedCompensation−Totalstock−basedcompensationexpenseincreasedto1,572 million for the fiscal quarter ended February 4, 2024, compared to 391millionintheprioryear,primarilyduetoequityawardsfromtheVMwareMergerandhighergrant−datefairvalues[106]−Unrecognizedcompensationcostrelatedtounvestedstock−basedawardsasofFebruary4,2024,totals12,132 million, with a remaining weighted-average service period of 3.3 years[107] Interest and Debt - Interest expense rose to 926million,upfrom406 million, due to debt incurred for the VMware Merger[109] - The company had 48.1billioninprincipalamountoffixedrateseniornotesoutstandingasofFebruary4,2024,withanestimatedaggregatefairvalueof43.2 billion[122] - A hypothetical 50 basis point change in market interest rates would alter the fair value of the fixed rate senior notes by approximately 1.6billionasofFebruary4,2024[122]−Thecompanyhad30.4 billion of outstanding term loans subject to floating interest rates as of February 4, 2024[122] - A hypothetical 1% change in the interest rate would impact the interest expense on the 2023 Term Loans by approximately 307millionoverthenext12months[122]CashFlowandFinancialPosition−Thecompany′scashandcashequivalentstotaled11,864 million as of February 4, 2024, with a 7.5billionunsecuredrevolvingcreditfacilityavailable[111]−Netcashprovidedbyoperatingactivitiesincreasedto4,815 million, primarily due to contributions from VMware[118] - Cash used in investing activities surged to 25,477million,mainlydueto25,416 million paid for the VMware Merger[119] - Net cash provided by financing activities was 18,337million,drivenby30,010 million in net proceeds from the 2023 Term Loans[120] Internal Controls and Reporting - The company's disclosure controls and procedures were deemed effective as of February 4, 2024, at the reasonable assurance level[124] - No material changes in internal control over financial reporting were identified during the period covered by the report[124]
Broadcom(AVGO)2024-03-13 16:00