SAN JOSE, Calif., March 4, 2021 /PRNewswire/
-- Broadcom Inc. (Nasdaq: AVGO), a global technology
leader that designs, develops and supplies semiconductor and
infrastructure software solutions, today reported financial results
for its first quarter of fiscal year 2021, ended January 31, 2021, provided guidance for the
second quarter of its fiscal year 2021 and announced its quarterly
dividends.
"We executed well during our first fiscal quarter driving 14%
organic growth year on year," said Hock Tan, President and CEO of
Broadcom Inc. "This growth reflects the critical role our
technology franchises play in this environment of accelerated
digital transformation."
"This quarter highlights the strength of our financial model
with 14% year over year revenue growth translating to an increase
in operating profit of 23%," said Kirsten
Spears, CFO of Broadcom Inc. "We continue to deliver strong
free cash flow, approximately $3
billion in the quarter, representing 35% growth on a year on
year basis."
First Quarter Fiscal Year 2021 Financial Highlights
|
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|
|
|
|
|
|
|
|
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|
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|
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GAAP
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Non-GAAP
|
(Dollars in millions,
except per share data)
|
|
Q1 21
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Q1 20
|
|
Change
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|
Q1 21
|
|
Q1 20
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Change
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Net
revenue
|
|
$
|
6,655
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|
$
|
5,858
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|
+14%
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|
$
|
6,655
|
|
$
|
5,858
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+14%
|
Net income
|
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$
|
1,378
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|
$
|
385
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|
+$
|
993
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|
$
|
2,973
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$
|
2,370
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+$
|
603
|
Earnings per common
share - diluted
|
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$
|
3.05
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$
|
0.74
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+$
|
2.31
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$
|
6.61
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$
|
5.25
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+$
|
1.36
|
(Dollars in
millions)
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Q1 21
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Q1 20
|
|
Change
|
Cash flow from
operations
|
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$
|
3,113
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$
|
2,322
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|
+$
|
791
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Adjusted
EBITDA
|
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$
|
3,941
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$
|
3,265
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+$
|
676
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Free cash
flow
|
|
|
|
|
|
|
|
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$
|
2,999
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$
|
2,214
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|
+$
|
785
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Net revenue by
segment
|
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(Dollars in
millions)
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Q1 21
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Q1 20
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Change
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Semiconductor
solutions
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$
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4,908
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74%
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$
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4,191
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72%
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+17%
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Infrastructure
software
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|
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1,747
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26
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|
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1,667
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|
28
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+5%
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Total net
revenue
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$
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6,655
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100%
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$
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5,858
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100%
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The Company's cash and cash equivalents at the end of the first
fiscal quarter were $9,552 million,
compared to $7,618 million at the end
of the prior quarter.
During the first fiscal quarter, the Company generated
$3,113 million in cash from
operations and spent $114 million on
capital expenditures.
On December 31, 2020, the Company
paid a cash dividend of $3.60 per
share of common stock, totaling $1,468
million and a cash dividend of $20.00 per share of mandatory convertible
preferred stock, totaling $75
million.
The differences between the Company's GAAP and non-GAAP results
are described generally under "Non-GAAP Financial Measures" below,
and presented in detail in the financial reconciliation tables
attached to this release.
Second Quarter Fiscal Year 2021 Business Outlook
Based on current business trends and conditions, the outlook for
the second quarter of fiscal year 2021, ending May 2, 2021, is expected to be as
follows:
- Second quarter revenue guidance of approximately $6.5 billion; and
- Second quarter Adjusted EBITDA guidance of approximately 59
percent of projected revenue
The guidance provided above is only an estimate of what the
Company believes is realizable as of the date of this release. The
Company is not readily able to provide a reconciliation of
projected Adjusted EBITDA to projected net income without
unreasonable effort. Actual results will vary from the guidance and
the variations may be material. The Company undertakes no intent or
obligation to publicly update or revise any of these projections,
whether as a result of new information, future events or otherwise,
except as required by law.
Quarterly Dividends
The Company's Board of Directors has approved a quarterly cash
dividend on its common stock of $3.60
per share. The common stock dividend is payable on March 31, 2021 to common stockholders of record
at the close of business (5:00 p.m. Eastern
Time) on March 22, 2021.
The Company's Board of Directors has also approved a quarterly
cash dividend on its 8.00% Mandatory Convertible Preferred Stock,
Series A, of $20.00 per share. This
dividend is payable on March 31, 2021
to preferred stockholders of record at the close of business
(5:00 p.m. Eastern Time) on
March 15, 2021.
Financial Results Conference Call
Broadcom Inc. will host a conference call to review its
financial results for the first quarter fiscal year ended
January 31, 2021, and to discuss the
business outlook, today at 2:00 p.m. Pacific
Time. Those wishing to access the call should dial (866)
310-8712; International +1 (720) 634-2946. The passcode is 9555701.
A replay of the call will be accessible for one week after the
call. To access the replay dial (855) 859-2056; International +1
(404) 537-3406; and reference the passcode: 9555701. A
webcast of the conference call will also be available in the
"Investors" section of Broadcom's website at www.broadcom.com.
Non-GAAP Financial Measures
The non-GAAP measures should not be considered as a substitute
for, or superior to, measures of financial performance prepared in
accordance with GAAP. A reconciliation between GAAP and non-GAAP
financial data is included in the supplemental financial data
attached to this press release. Broadcom believes non-GAAP
financial information provides additional insight into the
Company's on-going performance. Therefore, Broadcom provides this
information to investors for a more consistent basis of comparison
and to help them evaluate the results of the Company's on-going
operations and enable more meaningful period to period
comparisons.
In addition to GAAP reporting, Broadcom provides
investors with net revenue, net income, operating income, gross
margin, operating expenses, cash flow and other data on a non-GAAP
basis. This non-GAAP information excludes amortization of
acquisition-related intangible assets, stock-based compensation
expense, restructuring, impairment and disposal charges,
acquisition-related costs, including integration costs, purchase
accounting effect on inventory, litigation settlements, loss on
debt extinguishment, gains (losses) on investments, income (loss)
from discontinued operations, non-GAAP tax reconciling adjustments,
and other adjustments. Management does not believe that these items
are reflective of the Company's underlying performance. Internally,
these non-GAAP measures are significant measures used by management
for purposes of evaluating the core operating performance of the
Company, establishing internal budgets, calculating return on
investment for development programs and growth initiatives,
comparing performance with internal forecasts and targeted business
models, strategic planning, evaluating and valuing potential
acquisition candidates and how their operations compare to the
Company's operations, and benchmarking performance externally
against the Company's competitors. The exclusion of these and other
similar items from Broadcom's non-GAAP financial results should not
be interpreted as implying that these items are non-recurring,
infrequent or unusual.
Free cash flow measures have limitations as they omit certain
components of the overall cash flow statement and do not represent
the residual cash flow available for discretionary
expenditures. Investors should not consider presentation of
free cash flow measures as implying that stockholders have any
right to such cash. Broadcom's free cash flow may not be calculated
in a manner comparable to similarly named measures used by other
companies.
About Broadcom Inc.
Broadcom Inc., (NASDAQ: AVGO), a Delaware corporation headquartered in
San Jose, CA, is a global
technology leader that designs, develops and supplies a broad range
of semiconductor and infrastructure software solutions. Broadcom's
category-leading product portfolio serves critical markets
including data center, networking, enterprise software, broadband,
wireless, storage and industrial. Our solutions include data center
networking and storage, enterprise, mainframe and cyber security
software focused on automation, monitoring and security, smartphone
components, telecoms and factory automation. For more information,
go to www.broadcom.com.
Cautionary Note Regarding Forward-Looking Statements
This announcement contains forward-looking statements (including
within the meaning of Section 21E of the United States
Securities Exchange Act of 1934, as amended, and Section 27A
of the United States Securities Act of 1933, as amended) concerning
Broadcom. These statements include, but are not limited to,
statements that address our expected future business and financial
performance and other statements identified by words such as
"will", "expect", "believe", "anticipate", "estimate", "should",
"intend", "plan", "potential", "predict" "project", "aim", and
similar words, phrases or expressions. These forward-looking
statements are based on current expectations and beliefs of the
management of Broadcom, as well as assumptions made by, and
information currently available to, such management, current market
trends and market conditions and involve risks and uncertainties,
many of which are outside the Company's and management's control,
and which may cause actual results to differ materially from those
contained in forward-looking statements. Accordingly, you should
not place undue reliance on such statements.
Particular uncertainties that could materially affect future
results include risks associated with: the COVID-19 pandemic, which
has, and will likely continue to, negatively impact the global
economy and disrupt normal business activity, and which may have an
adverse effect on our results of operations; any loss of our
significant customers and fluctuations in the timing and volume of
significant customer demand; our dependence on contract
manufacturing and outsourced supply chain; our dependency on a
limited number of suppliers; global economic conditions and
concerns; global political and economic conditions; government
regulations, trade restrictions and trade tensions; our significant
indebtedness and the need to generate sufficient cash flows to
service and repay such debt; dependence on and risks associated
with distributors and resellers of our products; dependence on
senior management and our ability to attract and retain qualified
personnel; any acquisitions we may make, such as delays, challenges
and expenses associated with receiving governmental and regulatory
approvals and satisfying other closing conditions, and with
integrating acquired businesses with our existing businesses and
our ability to achieve the benefits, growth prospects and synergies
expected by such acquisitions; involvement in legal or
administrative proceedings; quarterly and annual fluctuations in
operating results; our ability to accurately estimate customers'
demand and adjust our manufacturing and supply chain accordingly;
cyclicality in the semiconductor industry or in our target markets;
our competitive performance and ability to continue achieving
design wins with our customers, as well as the timing of any design
wins; prolonged disruptions of our or our contract manufacturers'
manufacturing facilities, warehouses or other significant
operations; our ability to improve our manufacturing efficiency and
quality; our dependence on outsourced service providers for certain
key business services and their ability to execute to our
requirements; our ability to maintain or improve gross margin; our
ability to protect our intellectual property and the
unpredictability of any associated litigation expenses;
compatibility of our software products with operating environments,
platforms or third-party products; our ability to enter into
satisfactory software license agreements; availability of third
party software used in our products; use of open source code
sources in our products; any expenses or reputational damage
associated with resolving customer product warranty and
indemnification claims; market acceptance of the end products into
which our products are designed; our ability to sell to new types
of customers and to keep pace with technological advances; our
compliance with privacy and data security laws; our ability to
protect against a breach of security systems; fluctuations in
foreign exchange rates; our provision for income taxes and overall
cash tax costs, legislation that may impact our overall cash tax
costs and our ability to maintain tax concessions in certain
jurisdictions; and other events and trends on a national, regional
and global scale, including those of a political, economic,
business, competitive and regulatory nature. Many of the foregoing
risks and uncertainties are, and will be, exacerbated by the
COVID-19 pandemic and any worsening of the global business and
economic environment as a result.
Our filings with the SEC, which you may obtain for free at the
SEC's website at http://www.sec.gov, discuss some of the important
risk factors that may affect our business, results of operations
and financial condition. Actual results may vary from the estimates
provided. We undertake no intent or obligation to publicly update
or revise any of the estimates and other forward-looking statements
made in this announcement, whether as a result of new information,
future events or otherwise, except as required by law.
Contact:
Ji Yoo
Broadcom Inc.
Investor Relations
408-433-8000
investor.relations@broadcom.com
1 The
Company is not readily able to provide a reconciliation of the
projected non-GAAP financial information presented to the relevant
projected GAAP measure without unreasonable effort.
|
BROADCOM
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED
|
(IN MILLIONS,
EXCEPT PER SHARE DATA)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter
Ended
|
|
|
January
31,
|
|
November
1,
|
|
February
2,
|
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
|
$
|
6,655
|
|
$
|
6,467
|
|
$
|
5,858
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
1,814
|
|
|
1,753
|
|
|
1,636
|
Amortization of
acquisition-related intangible assets
|
|
|
874
|
|
|
962
|
|
|
950
|
Restructuring
charges
|
|
|
15
|
|
|
5
|
|
|
8
|
Total cost of
revenue
|
|
|
2,703
|
|
|
2,720
|
|
|
2,594
|
Gross
margin
|
|
|
3,952
|
|
|
3,747
|
|
|
3,264
|
Research and
development
|
|
|
1,211
|
|
|
1,182
|
|
|
1,289
|
Selling, general and
administrative
|
|
|
339
|
|
|
405
|
|
|
601
|
Amortization of
acquisition-related intangible assets
|
|
|
494
|
|
|
599
|
|
|
603
|
Restructuring,
impairment and disposal charges
|
|
|
71
|
|
|
35
|
|
|
57
|
Total operating
expenses
|
|
|
2,115
|
|
|
2,221
|
|
|
2,550
|
Operating
income
|
|
|
1,837
|
|
|
1,526
|
|
|
714
|
Interest
expense
|
|
|
(570)
|
|
|
(420)
|
|
|
(406)
|
Other income
(expense), net
|
|
|
117
|
|
|
31
|
|
|
(4)
|
Income from
continuing operations before income taxes
|
|
|
1,384
|
|
|
1,137
|
|
|
304
|
Provision for
(benefit from) income taxes
|
|
|
6
|
|
|
(187)
|
|
|
(76)
|
Income from
continuing operations
|
|
|
1,378
|
|
|
1,324
|
|
|
380
|
Income from
discontinued operations, net of income taxes
|
|
|
-
|
|
|
-
|
|
|
5
|
Net income
|
|
|
1,378
|
|
|
1,324
|
|
|
385
|
Dividends on
preferred stock
|
|
|
(74)
|
|
|
(74)
|
|
|
(74)
|
Net income
attributable to common stock
|
|
$
|
1,304
|
|
$
|
1,250
|
|
$
|
311
|
|
|
|
|
|
|
|
|
|
|
Basic income per
share attributable to common stock:
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations
|
|
$
|
3.20
|
|
$
|
3.09
|
|
$
|
0.77
|
Income per share from
discontinued operations
|
|
|
-
|
|
|
-
|
|
|
0.01
|
Net income per
share
|
|
$
|
3.20
|
|
$
|
3.09
|
|
$
|
0.78
|
|
|
|
|
|
|
|
|
|
|
Diluted income per
share attributable to common stock(1):
|
|
|
|
|
|
|
|
|
|
Income per share from
continuing operations
|
|
$
|
3.05
|
|
$
|
2.93
|
|
$
|
0.73
|
Income per share from
discontinued operations
|
|
|
-
|
|
|
-
|
|
|
0.01
|
Net income per
share
|
|
$
|
3.05
|
|
$
|
2.93
|
|
$
|
0.74
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used in per share calculations:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
407
|
|
|
405
|
|
|
398
|
Diluted
|
|
|
428
|
|
|
426
|
|
|
420
|
|
|
|
|
|
|
|
|
|
|
Stock-based
compensation expense included in continuing operations:
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
$
|
32
|
|
$
|
38
|
|
$
|
43
|
Research and
development
|
|
|
328
|
|
|
318
|
|
|
391
|
Selling, general and
administrative
|
|
|
84
|
|
|
93
|
|
|
111
|
Total stock-based
compensation expense
|
|
$
|
444
|
|
$
|
449
|
|
$
|
545
|
|
|
|
|
|
|
|
|
|
|
|
(1) Excludes the
potentially dilutive effect of Mandatory Convertible Preferred
Stock as the impact was antidilutive.
|
BROADCOM
INC.
|
FINANCIAL
RECONCILIATION: GAAP TO NON-GAAP - UNAUDITED
|
(IN
MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter
Ended
|
|
|
January
31,
|
|
November
1,
|
|
February
2,
|
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
Gross margin on GAAP
basis
|
|
$
|
3,952
|
|
$
|
3,747
|
|
$
|
3,264
|
Purchase accounting
effect on inventory
|
|
|
-
|
|
|
-
|
|
|
11
|
Amortization of
acquisition-related intangible assets
|
|
|
874
|
|
|
962
|
|
|
950
|
Stock-based
compensation expense
|
|
|
32
|
|
|
38
|
|
|
43
|
Restructuring
charges
|
|
|
15
|
|
|
5
|
|
|
8
|
Acquisition-related
costs
|
|
|
3
|
|
|
6
|
|
|
1
|
Gross margin on
non-GAAP basis
|
|
$
|
4,876
|
|
$
|
4,758
|
|
$
|
4,277
|
|
|
|
|
|
|
|
|
|
|
Research and
development on GAAP basis
|
|
$
|
1,211
|
|
$
|
1,182
|
|
$
|
1,289
|
Stock-based
compensation expense
|
|
|
328
|
|
|
318
|
|
|
391
|
Acquisition-related
costs
|
|
|
1
|
|
|
1
|
|
|
7
|
Research and
development on non-GAAP basis
|
|
$
|
882
|
|
$
|
863
|
|
$
|
891
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense on GAAP basis
|
|
$
|
339
|
|
$
|
405
|
|
$
|
601
|
Stock-based
compensation expense
|
|
|
84
|
|
|
93
|
|
|
111
|
Acquisition-related
costs
|
|
|
41
|
|
|
60
|
|
|
175
|
Litigation
settlements
|
|
|
-
|
|
|
-
|
|
|
13
|
Selling, general and
administrative expense on non-GAAP basis
|
|
$
|
214
|
|
$
|
252
|
|
$
|
302
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses on GAAP basis
|
|
$
|
2,115
|
|
$
|
2,221
|
|
$
|
2,550
|
Amortization of
acquisition-related intangible assets
|
|
|
494
|
|
|
599
|
|
|
603
|
Stock-based
compensation expense
|
|
|
412
|
|
|
411
|
|
|
502
|
Restructuring,
impairment and disposal charges
|
|
|
71
|
|
|
35
|
|
|
57
|
Litigation
settlements
|
|
|
-
|
|
|
-
|
|
|
13
|
Acquisition-related
costs
|
|
|
42
|
|
|
61
|
|
|
182
|
Total operating
expenses on non-GAAP basis
|
|
$
|
1,096
|
|
$
|
1,115
|
|
$
|
1,193
|
|
|
|
|
|
|
|
|
|
|
Operating income on
GAAP basis
|
|
$
|
1,837
|
|
$
|
1,526
|
|
$
|
714
|
Purchase accounting
effect on inventory
|
|
|
-
|
|
|
-
|
|
|
11
|
Amortization of
acquisition-related intangible assets
|
|
|
1,368
|
|
|
1,561
|
|
|
1,553
|
Stock-based
compensation expense
|
|
|
444
|
|
|
449
|
|
|
545
|
Restructuring,
impairment and disposal charges
|
|
|
86
|
|
|
40
|
|
|
65
|
Litigation
settlements
|
|
|
-
|
|
|
-
|
|
|
13
|
Acquisition-related
costs
|
|
|
45
|
|
|
67
|
|
|
183
|
Operating income on
non-GAAP basis
|
|
$
|
3,780
|
|
$
|
3,643
|
|
$
|
3,084
|
|
|
|
|
|
|
|
|
|
|
Interest expense on
GAAP basis
|
|
$
|
(570)
|
|
$
|
(420)
|
|
$
|
(406)
|
Loss on debt
extinguishment
|
|
|
172
|
|
|
16
|
|
|
5
|
Interest expense on
non-GAAP basis
|
|
$
|
(398)
|
|
$
|
(404)
|
|
$
|
(401)
|
|
|
|
|
|
|
|
|
|
|
Other income (loss),
net on GAAP basis
|
|
$
|
117
|
|
$
|
31
|
|
$
|
(4)
|
(Gains) losses on
investments
|
|
|
(119)
|
|
|
(10)
|
|
|
18
|
Acquisition-related
gain
|
|
|
(2)
|
|
|
(4)
|
|
|
(4)
|
Other income (loss),
net on non-GAAP basis
|
|
$
|
(4)
|
|
$
|
17
|
|
$
|
10
|
|
|
|
|
|
|
|
|
|
|
Provision for
(benefit from) income taxes on GAAP basis
|
|
$
|
6
|
|
$
|
(187)
|
|
$
|
(76)
|
Non-GAAP tax
reconciling adjustments
|
|
|
399
|
|
|
578
|
|
|
399
|
Provision for income
taxes on non-GAAP basis
|
|
$
|
405
|
|
$
|
391
|
|
$
|
323
|
|
|
|
|
|
|
|
|
|
|
Net income on GAAP
basis
|
|
$
|
1,378
|
|
$
|
1,324
|
|
$
|
385
|
Purchase accounting
effect on inventory
|
|
|
-
|
|
|
-
|
|
|
11
|
Amortization of
acquisition-related intangible assets
|
|
|
1,368
|
|
|
1,561
|
|
|
1,553
|
Stock-based
compensation expense
|
|
|
444
|
|
|
449
|
|
|
545
|
Restructuring,
impairment and disposal charges
|
|
|
86
|
|
|
40
|
|
|
65
|
Litigation
settlements
|
|
|
-
|
|
|
-
|
|
|
13
|
Acquisition-related
costs
|
|
|
43
|
|
|
63
|
|
|
179
|
Loss on debt
extinguishment
|
|
|
172
|
|
|
16
|
|
|
5
|
(Gains) losses on
investments
|
|
|
(119)
|
|
|
(10)
|
|
|
18
|
Non-GAAP tax
reconciling adjustments
|
|
|
(399)
|
|
|
(578)
|
|
|
(399)
|
Discontinued
operations, net of income taxes
|
|
|
-
|
|
|
-
|
|
|
(5)
|
Net income on
non-GAAP basis
|
|
$
|
2,973
|
|
$
|
2,865
|
|
$
|
2,370
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used in per share calculations - diluted on GAAP
basis
|
|
|
428
|
|
|
426
|
|
|
420
|
Non-GAAP adjustment
(1)
|
|
|
22
|
|
|
25
|
|
|
31
|
Weighted-average
shares used in per share calculations - diluted on non-GAAP
basis
|
|
|
450
|
|
|
451
|
|
|
451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income on
non-GAAP basis
|
|
$
|
2,973
|
|
$
|
2,865
|
|
$
|
2,370
|
Interest expense on
non-GAAP basis
|
|
|
398
|
|
|
404
|
|
|
401
|
Provision for income
taxes on non-GAAP basis
|
|
|
405
|
|
|
391
|
|
|
323
|
Depreciation
|
|
|
138
|
|
|
139
|
|
|
146
|
Amortization of
purchased intangibles and right-of-use assets
|
|
|
27
|
|
|
28
|
|
|
25
|
Adjusted
EBITDA
|
|
$
|
3,941
|
|
$
|
3,827
|
|
$
|
3,265
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by
operating activities
|
|
$
|
3,113
|
|
$
|
3,348
|
|
$
|
2,322
|
Purchases of
property, plant and equipment
|
|
|
(114)
|
|
|
(102)
|
|
|
(108)
|
Free cash
flow
|
|
$
|
2,999
|
|
$
|
3,246
|
|
$
|
2,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal
Quarter
Ending
|
|
|
|
|
|
|
|
|
May
2,
|
|
|
|
|
|
|
Expected average
diluted share count:
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
shares used in per share calculation - diluted on GAAP
basis
|
|
430
|
|
|
|
|
|
|
Non-GAAP adjustment
(1)
|
|
20
|
|
|
|
|
|
|
Weighted-average
shares used in per share calculation - diluted on non-GAAP
basis
|
|
450
|
|
|
|
|
|
|
|
(1) Non-GAAP
adjustment for the number of shares used in the diluted per share
calculations excludes the impact of stock-based compensation
expense
expected to be incurred in future periods and not yet recognized in
the financial statements, which would otherwise be assumed to be
used to repurchase
shares under the GAAP treasury stock method. The non-GAAP
adjustment also included the impact of Mandatory Convertible
Preferred Stock that was
antidilutive on a GAAP basis. For the fiscal quarter ending May 2,
2021, the non-GAAP adjustment includes the impact of Mandatory
Convertible
Preferred Stock that is expected to be antidilutive on a GAAP
basis.
|
BROADCOM
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS - UNAUDITED
|
(IN
MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
January
31,
|
|
November
1,
|
|
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
9,552
|
|
$
|
7,618
|
|
Trade accounts
receivable, net
|
|
|
2,524
|
|
|
2,297
|
|
Inventory
|
|
|
952
|
|
|
1,003
|
|
Other current
assets
|
|
|
1,272
|
|
|
977
|
|
Total current
assets
|
|
|
14,300
|
|
|
11,895
|
|
|
|
|
|
|
|
|
|
Long-term
assets:
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
2,496
|
|
|
2,509
|
|
Goodwill
|
|
|
43,457
|
|
|
43,447
|
|
Intangible assets,
net
|
|
|
15,419
|
|
|
16,782
|
|
Other long-term
assets
|
|
|
1,300
|
|
|
1,300
|
|
Total
assets
|
|
$
|
76,972
|
|
$
|
75,933
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
898
|
|
$
|
836
|
|
Employee compensation
and benefits
|
|
|
494
|
|
|
877
|
|
Current portion of
long-term debt
|
|
|
864
|
|
|
827
|
|
Other current
liabilities
|
|
|
4,438
|
|
|
3,831
|
|
Total current
liabilities
|
|
|
6,694
|
|
|
6,371
|
|
|
|
|
|
|
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
Long-term
debt
|
|
|
41,068
|
|
|
40,235
|
|
Other long-term
liabilities
|
|
|
5,211
|
|
|
5,426
|
|
Total
liabilities
|
|
|
52,973
|
|
|
52,032
|
|
|
|
|
|
|
|
|
|
Preferred stock
dividend obligation
|
|
|
26
|
|
|
27
|
|
|
|
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
|
|
|
Preferred
stock
|
|
|
-
|
|
|
-
|
|
Common
stock
|
|
|
-
|
|
|
-
|
|
Additional paid-in
capital
|
|
|
24,080
|
|
|
23,982
|
|
Retained
earnings
|
|
|
-
|
|
|
-
|
|
Accumulated other
comprehensive loss
|
|
|
(107)
|
|
|
(108)
|
|
Total stockholders'
equity
|
|
|
23,973
|
|
|
23,874
|
|
Total
liabilities and equity
|
|
$
|
76,972
|
|
$
|
75,933
|
|
BROADCOM
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS - UNAUDITED
|
(IN
MILLIONS)
|
|
|
|
|
|
|
|
|
|
|
|
|
Fiscal Quarter
Ended
|
|
|
January
31,
|
|
November
1,
|
|
February
2,
|
|
|
2021
|
|
2020
|
|
2020
|
Cash flows from
operating activities:
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
1,378
|
|
$
|
1,324
|
|
$
|
385
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
Amortization of
intangible and right-of-use assets
|
|
|
1,395
|
|
|
1,589
|
|
|
1,582
|
Depreciation
|
|
|
138
|
|
|
139
|
|
|
146
|
Stock-based
compensation
|
|
|
444
|
|
|
449
|
|
|
545
|
Deferred taxes and
other non-cash taxes
|
|
|
(149)
|
|
|
(459)
|
|
|
(72)
|
Loss on debt
extinguishment
|
|
|
172
|
|
|
16
|
|
|
5
|
Unrealized gain on
investments
|
|
|
(119)
|
|
|
-
|
|
|
-
|
Non-cash
restructuring, impairment and disposal charges
|
|
|
15
|
|
|
12
|
|
|
11
|
Non-cash interest
expense
|
|
|
22
|
|
|
25
|
|
|
30
|
Other
|
|
|
(5)
|
|
|
(9)
|
|
|
19
|
Changes in assets and
liabilities, net of acquisitions and disposals:
|
|
|
|
|
|
|
|
|
|
Trade accounts
receivable, net
|
|
|
(247)
|
|
|
391
|
|
|
(392)
|
Inventory
|
|
|
51
|
|
|
67
|
|
|
40
|
Accounts
payable
|
|
|
44
|
|
|
(230)
|
|
|
117
|
Employee
compensation and benefits
|
|
|
(375)
|
|
|
142
|
|
|
(217)
|
Other current
assets and current liabilities
|
|
|
408
|
|
|
(131)
|
|
|
346
|
Other
long-term assets and long-term liabilities
|
|
|
(59)
|
|
|
23
|
|
|
(223)
|
Net cash provided
by operating activities
|
|
|
3,113
|
|
|
3,348
|
|
|
2,322
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities:
|
|
|
|
|
|
|
|
|
|
Acquisitions of
businesses, net of cash acquired
|
|
|
(8)
|
|
|
-
|
|
|
(10,870)
|
Purchases of
property, plant and equipment
|
|
|
(114)
|
|
|
(102)
|
|
|
(108)
|
Proceeds from
disposals of property, plant and equipment
|
|
|
-
|
|
|
2
|
|
|
-
|
Other
|
|
|
-
|
|
|
-
|
|
|
(9)
|
Net cash used in
investing activities
|
|
|
(122)
|
|
|
(100)
|
|
|
(10,987)
|
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities:
|
|
|
|
|
|
|
|
|
|
Proceeds from
long-term borrowings
|
|
|
9,904
|
|
|
-
|
|
|
15,381
|
Repayment of
debt
|
|
|
(9,200)
|
|
|
(3,000)
|
|
|
(4,537)
|
Other borrowings,
net
|
|
|
-
|
|
|
-
|
|
|
718
|
Payment of
dividends
|
|
|
(1,543)
|
|
|
(1,395)
|
|
|
(1,372)
|
Shares repurchased
for tax withholdings on vesting of equity awards
|
|
|
(225)
|
|
|
(185)
|
|
|
(169)
|
Issuance of common
stock
|
|
|
35
|
|
|
102
|
|
|
37
|
Other
|
|
|
(28)
|
|
|
(9)
|
|
|
(4)
|
Net cash provided
by (used in) financing activities
|
|
|
(1,057)
|
|
|
(4,487)
|
|
|
10,054
|
|
|
|
|
|
|
|
|
|
|
Net change in cash
and cash equivalents
|
|
|
1,934
|
|
|
(1,239)
|
|
|
1,389
|
Cash and cash
equivalents at beginning of period
|
|
|
7,618
|
|
|
8,857
|
|
|
5,055
|
Cash and cash
equivalents at end of period
|
|
$
|
9,552
|
|
$
|
7,618
|
|
$
|
6,444
|
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure of cash flow information:
|
|
|
|
|
|
|
|
|
|
Cash paid for
interest
|
|
$
|
372
|
|
$
|
383
|
|
$
|
381
|
Cash paid for income
taxes
|
|
$
|
147
|
|
$
|
202
|
|
$
|
131
|
View original
content:http://www.prnewswire.com/news-releases/broadcom-inc-announces-first-quarter-fiscal-year-2021-financial-results-and-quarterly-dividends-301240995.html
SOURCE Broadcom Inc.