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Broadcom Inc. Pronounces Third Quarter Fiscal Yr 2022 Monetary Outcomes and Quarterly Dividends


Cision

  • Money from operations of $4,424 million for the third quarter, much less capital expenditures of $116 million resulted in $4,308 million of free money circulation, or 51 p.c of income

  • Quarterly frequent inventory dividend of $4.10 per share, FY22 annual frequent inventory dividend of $16.40 per share

  • Income of $8,464 million for the third quarter, up 25 p.c from the prior yr interval

  • GAAP web revenue of $3,074 million for the third quarter; Adjusted EBITDA of $5,378 million for the third quarter

  • GAAP diluted EPS of $7.15 for the third quarter; Non-GAAP diluted EPS of $9.73 for the third quarter

  • Repurchased and eradicated 3.2 million shares for $1,792 million

  • Fourth quarter income steerage of roughly $8.9 billion, a rise of 20 p.c from the prior yr interval

  • Fourth quarter Adjusted EBITDA steerage of roughly 63 p.c of projected income (1)

SAN JOSE, Calif., Sept. 1, 2022 /PRNewswire/ — Broadcom Inc. (Nasdaq: AVGO), a worldwide expertise chief that designs, develops and provides semiconductor and infrastructure software program options, at the moment reported monetary outcomes for its third quarter of fiscal yr 2022, ended July 31, 2022, supplied steerage for the fourth quarter of its fiscal yr 2022 and introduced its quarterly dividends.

“Broadcom’s report third quarter outcomes had been pushed by sturdy demand throughout cloud, service suppliers, and enterprise,” stated Hock Tan, President and CEO of Broadcom Inc. “We count on strong demand throughout our finish markets to proceed within the fourth quarter, reflecting continued funding by our prospects of subsequent technology applied sciences in information facilities, broadband, and wi-fi.”

“Consolidated income grew 25% year-over-year to $8.5 billion and working revenue elevated 32%,” stated Kirsten Spears, CFO of Broadcom Inc. “We generated $4.Three billion in free money circulation and expect free money circulation to be sturdy within the fourth quarter. We stay dedicated to return extra money to shareholders and within the third quarter, we returned $3.2 billion to shareholders together with $1.7 billion of money dividends and $1.5 billion of share repurchases.”

Third Quarter Fiscal Yr 2022 Monetary Highlights

GAAP

Non-GAAP

({Dollars} in thousands and thousands, besides per share information)

Q3 22

Q3 21

Change

Q3 22

Q3 21

Change

Internet income

$

8,464

$

6,778

+25

%

$

8,464

$

6,778

+25

%

Internet revenue

$

3,074

$

1,876

+$

1,198

$

4,241

$

3,124

+$

1,117

Earnings per frequent share – diluted

$

7.15

$

4.20

+$

2.95

$

9.73

$

6.96

+$

2.77

({Dollars} in thousands and thousands)

Q3 22

Q3 21

Change

Money circulation from operations

$

4,424

$

3,541

+$

883

Adjusted EBITDA

$

5,378

$

4,123

+$

1,255

Free money circulation

$

4,308

$

3,426

+$

882

Internet income by phase

({Dollars} in thousands and thousands)

Q3 22

Q3 21

Change

Semiconductor options

$

6,624

78 %

$

5,021

74 %

+32 %

Infrastructure software program

1,840

22

1,757

26

+5 %

Complete web income

$

8,464

100 %

$

6,778

100 %

The Firm’s money and money equivalents on the finish of the fiscal quarter had been $9,977 million, in comparison with $9,005 million on the finish of the prior quarter.

Through the third fiscal quarter, the Firm generated $4,424 million in money from operations and spent $116 million on capital expenditures. The Firm spent $1,792 million on share repurchases and eliminations, consisting of $1,500 million in repurchases of two.6 million shares and $292 million of withholding tax funds associated to web settled fairness awards that vested within the quarter (representing roughly 0.6 million shares withheld).

On June 30, 2022, the Firm paid a money dividend of $4.10 per share of frequent inventory, totaling $1,661 million and a money dividend of $20.00 per share of necessary convertible most well-liked inventory, totaling $75 million.

The variations between the Firm’s GAAP and non-GAAP outcomes are described usually beneath “Non-GAAP Monetary Measures” beneath, and offered intimately within the monetary reconciliation tables hooked up to this launch.

Fourth Quarter Fiscal Yr 2022 Enterprise Outlook

Based mostly on present enterprise developments and circumstances, the outlook for the fourth quarter of fiscal yr 2022, ending October 30, 2022, is anticipated to be as follows:

The steerage supplied above is barely an estimate of what the Firm believes is realizable as of the date of this launch. The Firm just isn’t readily in a position to present a reconciliation of projected Adjusted EBITDA to projected web revenue with out unreasonable effort. Precise outcomes will differ from the steerage and the variations could also be materials. The Firm undertakes no intent or obligation to publicly replace or revise any of those projections, whether or not on account of new info, future occasions or in any other case, besides as required by regulation.

Quarterly Dividends

The Firm’s Board of Administrators has authorized a quarterly money dividend on its frequent inventory of $4.10 per share. The frequent inventory dividend is payable on September 30, 2022 to frequent stockholders of report on the shut of enterprise (5:00 p.m. Jap Time) on September 22, 2022.

The Firm’s Board of Administrators has additionally authorized a quarterly money dividend on its 8.00% Necessary Convertible Most well-liked Inventory, Collection A, of $20.00 per share. This dividend is payable on September 30, 2022 to most well-liked stockholders of report on the shut of enterprise (5:00 p.m. Jap Time) on September 15, 2022.

Monetary Outcomes Convention Name

Broadcom Inc. will host a convention name to evaluate its monetary outcomes for the third quarter fiscal yr 2022 and to debate the enterprise outlook, at the moment at 2:00 p.m. Pacific Time.

To Hear through Web: The convention name could be accessed stay on-line within the Traders part of the Broadcom web site at https://traders.broadcom.com/.

To Hear through Phone: Preregistration is required by the convention name operator. Please preregister at https://register.vevent.com/register/BI4b942b6b1ed0474fab3f1f6f2d0f2b98. Upon registering, you can be emailed a hyperlink to the dial-in quantity and distinctive PIN.

Replay: An audio replay of the convention name could be accessed for one yr by means of the Traders part of Broadcom’s web site at https://traders.broadcom.com/.

Non-GAAP Monetary Measures

The non-GAAP measures shouldn’t be thought of as an alternative choice to, or superior to, measures of economic efficiency ready in accordance with GAAP. A reconciliation between GAAP and non-GAAP monetary information is included within the supplemental monetary information hooked up to this press launch. Broadcom believes non-GAAP monetary info offers extra perception into the Firm’s on-going efficiency. Due to this fact, Broadcom offers this info to traders for a extra constant foundation of comparability and to assist them consider the outcomes of the Firm’s on-going operations and allow extra significant interval to interval comparisons.

Along with GAAP reporting, Broadcom offers traders with web revenue, working revenue, gross margin, working bills, money circulation and different information on a non-GAAP foundation. This non-GAAP info excludes amortization of acquisition-related intangible belongings, stock-based compensation expense, restructuring, impairment and disposal costs, acquisition-related prices, together with integration prices, buy accounting impact on stock, litigation settlements, loss on debt extinguishment, positive factors (losses) on investments, revenue (loss) from discontinued operations, non-GAAP tax reconciling changes, and different changes. Administration doesn’t imagine that this stuff are reflective of the Firm’s underlying efficiency. Internally, these non-GAAP measures are vital measures utilized by administration for functions of evaluating the core working efficiency of the Firm, establishing inner budgets, calculating return on funding for growth packages and development initiatives, evaluating efficiency with inner forecasts and focused enterprise fashions, strategic planning, evaluating and valuing potential acquisition candidates and the way their operations evaluate to the Firm’s operations, and benchmarking efficiency externally in opposition to the Firm’s opponents. The exclusion of those and different related objects from Broadcom’s non-GAAP monetary outcomes shouldn’t be interpreted as implying that this stuff are non-recurring, rare or uncommon.

Free money circulation measures have limitations as they omit sure elements of the general money circulation assertion and don’t symbolize the residual money circulation accessible for discretionary expenditures. Traders mustn’t take into account presentation of free money circulation measures as implying that stockholders have any proper to such money. Broadcom’s free money circulation might not be calculated in a way similar to equally named measures utilized by different corporations.

About Broadcom Inc.

Broadcom Inc. (NASDAQ: AVGO), a Delaware company headquartered in San Jose, CA, is a worldwide expertise chief that designs, develops and provides a broad vary of semiconductor and infrastructure software program options. Broadcom’s category-leading product portfolio serves essential markets together with information heart, networking, enterprise software program, broadband, wi-fi, storage and industrial. Our options embrace information heart networking and storage, enterprise, mainframe and cyber safety software program centered on automation, monitoring and safety, smartphone elements, telecoms and manufacturing unit automation. For extra info, go to https://www.broadcom.com.

Cautionary Be aware Relating to Ahead-Trying Statements

This announcement comprises forward-looking statements (together with throughout the which means of Part 21E of the US Securities Alternate Act of 1934, as amended, and Part 27A of the US Securities Act of 1933, as amended) regarding Broadcom. These statements embrace, however aren’t restricted to, statements that deal with our anticipated future enterprise and monetary efficiency, our plans and expectations with regard to our share repurchases, and different statements recognized by phrases comparable to “will,” “count on,” “imagine,” “anticipate,” “estimate,” “ought to,” “intend,” “plan,” “potential,” “predict,” “venture,” “purpose,” and related phrases, phrases or expressions. These forward-looking statements are primarily based on present expectations and beliefs of the administration of Broadcom, in addition to assumptions made by, and data at the moment accessible to, such administration, present market developments and market circumstances and contain dangers and uncertainties, lots of that are exterior the Firm’s and administration’s management, and which can trigger precise outcomes to vary materially from these contained in forward-looking statements. Accordingly, you shouldn’t place undue reliance on such statements.

Explicit uncertainties that would materially have an effect on future outcomes embrace dangers related to: international financial circumstances and considerations; cyclicality within the semiconductor trade or in our goal markets; any lack of our vital prospects and fluctuations within the timing and quantity of great buyer demand; our dependence on contract manufacturing and outsourced provide chain; our dependency on a restricted variety of suppliers; authorities rules and administrative proceedings, commerce restrictions and commerce tensions; international political and financial circumstances; our vital indebtedness and the necessity to generate adequate money flows to service and repay such debt; the quantity and frequency of our share repurchase packages; the COVID-19 pandemic continues to disrupt, regular enterprise exercise; dependence on and dangers related to distributors and resellers of our merchandise; dependence on senior administration and our skill to draw and retain certified personnel; failing to finish or notice the anticipated advantages of our acquisition of VMware, Inc.; any acquisitions we could make, together with our acquisition of VMware, comparable to delays, challenges and bills related to receiving governmental and regulatory approvals and satisfying different closing circumstances, and with integrating acquired companies with our current companies and our skill to attain the advantages, development prospects and synergies anticipated by such acquisitions; involvement in authorized proceedings; quarterly and annual fluctuations in working outcomes; our skill to precisely estimate prospects’ demand and alter our manufacturing and provide chain accordingly; our aggressive efficiency and talent to proceed reaching design wins with our prospects, in addition to the timing of any design wins; extended disruptions of our or our contract producers’ manufacturing amenities, warehouses or different vital operations; our skill to enhance our manufacturing effectivity and high quality; our dependence on outsourced service suppliers for sure key enterprise providers and their skill to execute to our necessities; our skill to guard in opposition to cyber safety threats and a breach of safety programs; our skill to keep up or enhance gross margin; our skill to guard our mental property and the unpredictability of any related litigation bills; compatibility of our software program merchandise with working environments, platforms or third-party merchandise; our skill to enter into passable software program license agreements; availability of third get together software program utilized in our merchandise; use of open supply code sources in our merchandise; any bills or reputational injury related to resolving buyer product guarantee and indemnification claims; market acceptance of the tip merchandise into which our merchandise are designed; our skill to promote to new forms of prospects and to maintain tempo with technological advances; our compliance with privateness and information safety legal guidelines; fluctuations in international change charges; our provision for revenue taxes and total money tax prices, laws which will affect our total money tax prices and our skill to keep up tax concessions in sure jurisdictions; and different occasions and developments on a nationwide, regional and international scale, together with these of a political, financial, enterprise, aggressive and regulatory nature. Lots of the foregoing dangers and uncertainties are, and will probably be, exacerbated by the COVID-19 pandemic and any worsening of the worldwide enterprise and financial atmosphere consequently.

Our filings with the SEC, which you will receive free of charge on the SEC’s web site at http://www.sec.gov, focus on a number of the essential danger components which will have an effect on our enterprise, outcomes of operations and monetary situation. Precise outcomes could differ from the estimates supplied. We undertake no intent or obligation to publicly replace or revise any of the estimates and different forward-looking statements made on this announcement, whether or not on account of new info, future occasions or in any other case, besides as required by regulation.

Contact:
Ji Yoo
Broadcom Inc.
Investor Relations
408-433-8000
investor.relations@broadcom.com

(AVGO-Q)

(1) The Firm just isn’t readily in a position to present a reconciliation of the projected non-GAAP monetary info offered to the related projected GAAP measure with out unreasonable effort.

BROADCOM INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS – UNAUDITED

(IN MILLIONS, EXCEPT PER SHARE DATA)

Fiscal Quarter Ended

Three Fiscal Quarters Ended

July 31,

Might 1,

August 1,

July 31,

August 1,

2022

2022

2021

2022

2021

Internet income

$

8,464

$

8,103

$

6,778

$

24,273

$

20,043

Price of income:

Price of income

2,077

1,956

1,729

5,958

5,242

Amortization of acquisition-related intangible belongings

705

707

851

2,142

2,578

Restructuring costs

1

1

1

4

17

Complete value of income

2,783

2,664

2,581

8,104

7,837

Gross margin

5,681

5,439

4,197

16,169

12,206

Analysis and growth

1,255

1,261

1,205

3,722

3,654

Promoting, common and administrative

323

368

346

1,012

1,010

Amortization of acquisition-related intangible belongings

359

398

494

1,154

1,482

Restructuring, impairment and disposal costs

7

18

26

42

122

Complete working bills

1,944

2,045

2,071

5,930

6,268

Working revenue

3,737

3,394

2,126

10,239

5,938

Curiosity expense

(406)

(518)

(415)

(1,331)

(1,451)

Different revenue (expense), web

6

(86)

15

(94)

109

Earnings earlier than revenue taxes

3,337

2,790

1,726

8,814

4,596

Provision for (profit from) revenue taxes

263

200

(150)

678

(151)

Internet revenue

3,074

2,590

1,876

8,136

4,747

Dividends on most well-liked inventory

(75)

(75)

(74)

(224)

(224)

Internet revenue attributable to frequent inventory

$

2,999

$

2,515

$

1,802

$

7,912

$

4,523



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