Broadcom Limited reported financial results for the first quarter of its fiscal year 2016, ended January 31, 2016.
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Net revenue was $1,771 million, a decrease of 4 percent from $1,840 million in the previous quarter and an increase of 8 percent from $1,635 million in the same quarter last year.
Gross margin was $941 million, or 53 percent of net revenue. This compares with gross margin of $997 million, or 54 percent of net revenue in the prior quarter, and gross margin of $826 million, or 51 percent of net revenue in the same quarter last year.
Operating expenses were $466 million. This compares with $483 million in the prior quarter and $425 million for the same quarter last year.
Operating income was $475 million, or 27 percent of net revenue. This compares with operating income of $514 million, or 28 percent of net revenue, in the prior quarter, and $401 million, or 25 percent of net revenue, in the same quarter last year.
Net income, which includes the impact of discontinued operations, was $377 million, or $1.30 per diluted share. This compares with net income of $429 million, or $1.49 per diluted share, for the prior quarter, and $351 million, or $1.26 per diluted share in the same quarter last year.
The company’s cash balance at the end of the first fiscal quarter was $2,169 million, compared to $1,822 million at the end of the prior quarter.
The company generated $474 million in cash from operations and spent $140 million on capital expenditures in the first fiscal quarter of 2016. The company also received $68 million in cash from the completion of the sale of certain fiber optics subsystem manufacturing and related assets to a third party in the quarter.
On December 30, 2015, the company paid a cash dividend of $0.44 per ordinary share, totaling $122 million.
Broadcom Limited is the successor to Avago Technologies Limited. Following Avago’s acquisition of Broadcom Corporation on February 1, 2016, Broadcom Limited became the ultimate parent company of Avago and BRCM. This is its first release of financial results following the Acquisition and relates solely to its predecessor, Avago, for the fiscal periods prior to the acquisition. ■