Broadcom Releases First Quarter FY 2020 Financial Results | Financial Buzz

Broadcom Releases First Quarter FY 2020 Financial Results

Broadcom Inc. 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. 

Broadcom Inc., (NASDAQ: AVGO) reported financial results for the first quarter of fiscal year 2020.  The company reported revenue of USD 5.8 Billion, net income of USD 385 Million as adjusted EBITDA of USD 3.2 Billion. 

“Our first fiscal quarter results were in line with our expectations, with our networking, storage and broadband businesses together growing nicely year over year,” said Hock Tan, President and CEO of Broadcom Inc. “The fundamental semiconductor backdrop has been improving, and we did not see any material impact on our businesses due to COVID-19 in our first quarter. However, visibility in our global markets is lacking and demand uncertainty is intensifying. As a result, we believe it prudent to withdraw our annual guidance until visibility returns to pre COVID-19 levels.”

“We generated over $2.2 billion in free cash flow in the quarter, which represented 9% growth on a year on year basis,” said Tom Krause, CFO of Broadcom Inc. “We ended the first quarter with over $6.4 billion of cash on hand and our cash flow outlook remains healthy. As a result, we are well positioned to continue to support our dividends to stockholders despite the challenging market backdrop.”

For the second quarter of fiscal year 2020, the company expects revenue of USD 5.7 Billion as adjusted EBITDA of USD 3.1 Billion. 

The company board has approved a quarterly cash dividend on common stock of USD 3.25 per share.