Broadcom Limited reported financial results for the fourth fiscal quarter and fiscal year ended October 29, 2017.
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The company completed its acquisition of Brocade Communications Systems, Inc. on November 17, 2017. The financial results provided below for the fourth quarter and fiscal year 2017 do not include any contribution from Brocade.
Fourth quarter
Net revenue was $4,844 million, an increase of 9 percent from $4,463 million in the previous quarter and an increase of 17 percent from $4,136 million in the same quarter last year.
Gross margin was $2,383 million, or 49.2 percent of net revenue. This compares with gross margin of $2,149 million, or 48.2 percent of net revenue, in the prior quarter, and gross margin of $2,171 million, or 52.5 percent of net revenue, in the same quarter last year.
Operating expenses were $1,518 million. This compares with $1,501 million in the prior quarter and $1,790 million for the same quarter last year.
Operating income was $865 million, or 17.9 percent of net revenue. This compares with operating income of $648 million, or 14.5 percent of net revenue, in the prior quarter, and operating income of $381 million, or 9.2 percent of net revenue, in the same quarter last year.
Net income, which includes the impact of discontinued operations, was $671 million, or $1.50 per diluted share. This compares with net income of $507 million, or $1.14 per diluted share, for the prior quarter, and net loss of $668 million, or $1.59 per diluted share, in the same quarter last year.
Net income attributable to ordinary shares was $636 million. Net income attributable to the noncontrolling interest (restricted exchangeable limited partnership units (REUs)) in the company’s subsidiary, Broadcom Cayman (the Partnership), was $35 million.
Fiscal year 2017
Net revenue from continuing operations was $17,636 million, an increase of 33 percent from $13,240 million in the prior year. Gross margin was $8,509 million, or 48.2 percent of net revenue, versus $5,940 million, or 44.9 percent of net revenue, in the prior year.
Operating income was $2,493 million compared with an operating loss of $409 million in the prior year. Net income, which includes the impact from discontinued operations, was $1,894 million, or $4.27 per diluted share.
This compares with a net loss of $1,861 million, or $4.86 per diluted share, in fiscal year 2016. Net income attributable to ordinary shares was $1,796 million in fiscal year 2017. Net income attributable to the noncontrolling interest REUs in the Partnership was $98 million. ■