Broadcom revenues jump, profit almost doubles in fiscal Q3

Broadcom Inc., a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its third quarter of fiscal year 2022, ended July 31, 2022, provided guidance for the fourth quarter of its fiscal year 2022 and announced its quarterly dividends.

“Broadcom’s record third quarter results were driven by robust demand across cloud, service providers, and enterprise,” said Hock Tan, President and CEO of Broadcom Inc. “We expect solid demand across our end markets to continue in the fourth quarter, reflecting continued investment by our customers of next generation technologies in data centers, broadband, and wireless.”

“Consolidated revenue grew 25% year-over-year to $8.5 billion and operating profit increased 32%,” said Kirsten Spears, CFO of Broadcom Inc. “We generated $4.3 billion in free cash flow and are expecting free cash flow to be strong in the fourth quarter. We remain committed to return excess cash to shareholders and in the third quarter, we returned $3.2 billion to shareholders including $1.7 billion of cash dividends and $1.5 billion of share repurchases.”

Third Quarter Fiscal Year 2022 Financial Highlights
The Company’s cash and cash equivalents at the end of the fiscal quarter were $9,977 million, compared to $9,005 million at the end of the prior quarter.

During the third fiscal quarter, the Company generated $4,424 million in cash from operations and spent $116 million on capital expenditures. The Company spent $1,792 million on share repurchases and eliminations, consisting of $1,500 million in repurchases of 2.6 million shares and $292 million of withholding tax payments related to net settled equity awards that vested in the quarter (representing approximately 0.6 million shares withheld).

On June 30, 2022, the Company paid a cash dividend of $4.10 per share of common stock, totaling $1,661 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.

Fourth Quarter Fiscal Year 2022 Business Outlook
Based on current business trends and conditions, the outlook for the fourth quarter of fiscal year 2022, ending October 30, 2022, is expected to be as follows:

• Fourth quarter revenue guidance of approximately $8.9 billion; and
• Fourth quarter Adjusted EBITDA guidance of approximately 63 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.

CT Bureau