Broadcom posts revenue of $5.78 billion, up 6% yoy

Broadcom reported quarterly net revenue of $5,776 million, 4.7 percent higher than $5,515 million in the previous quarter and 6.1 percent higher than $5,444 million in the same quarter last year.

Gross margin 54.6 percent of net revenue. Operating income was $1,054 million, or 18.2 percent of net revenue. This compares with operating income of $865 million, or 15.7 percent of net revenue, in the prior quarter, and operating income of $1,652 million, or 30.3 percent of net revenue, in the same quarter last year. Net income was $847 million, or $1.97 per diluted share. This compares with net income of $715 million, or $1.71 per diluted share, in the prior quarter, and net income of $1,115 million, or $2.64 per diluted share, in the same quarter last year.

The results do not include the Symantec Enterprise Security business, which Broadcom acquired on November 4, 2019.

On an annual basis, the semiconductor business declined 8% yoy, offset by gains in the infrastructure software business. All silicon categories declined for the year, with the exception of networking.

"Fiscal year 2019 concluded as expected. Our semiconductor solutions segment continued to work its way through a cyclical correction. This was more than offset by our infrastructure software segment, which delivered healthy results benefitting from the integration and performance of our CA business," said Hock Tan, President and CEO of Broadcom Inc. "Looking to fiscal 2020, we remain well-positioned across our technology franchises. We continue to believe that our core semiconductor business is bottoming and will return to year over year growth in the second half of our fiscal year. In addition, we expect to benefit from the integration of the Symantec Enterprise Security business into what is otherwise expected to be a stable infrastructure software segment in fiscal 2020."