Broadcom (AVGO) Affirms Q2 Guidance, Guides Q3 Revenue Below Views at Mid-Point

Broadcom Inc. (Nasdaq: AVGO), a leading semiconductor device supplier to the wired, wireless, enterprise storage, and industrial end markets, today narrowed the range for its revenue outlook for the second quarter of fiscal year 2018, ending May 6, 2018.

For the second quarter of fiscal year 2018, the Company expects non-GAAP net revenue in the range of $5,000 million plus or minus $25 million. The Company affirms all other non-GAAP guidance provided on March 15, 2018 for the second quarter.

(*Street sees Q2 revenue of 5.01 billion)

For the third quarter of fiscal year 2018, the Company expects non-GAAP net revenue in the range of $5,050 million, plus or minus $75 million.

(Street sees Q3 revenue of $5.24 billion)

“Our second quarter results reflect robust demand from datacenters which drove strong growth in our wired and enterprise storage segments while wireless was weak,” said Hock Tan, President and CEO of Broadcom Inc. “Looking ahead to our third fiscal quarter, we expect continued strength in demand from datacenters while wireless remains weak.”

“We remain focused on driving free cash flow growth per share and expect second quarter fiscal year 2018 free cash flow to exceed 40 percent of revenue,” said Tom Krause, CFO of Broadcom Inc. “We are taking this opportunity to reaffirm our commitment to continuing to return free cash flow to shareholders and are increasing our open market buyback activities as part of our recently announced $12 billion share repurchase program.”

Non-GAAP Financial Measures

Management uses non-GAAP measures for, among other things, purposes of evaluating the core operating performance of the Company. Broadcom believes these measures also provide investors with a consistent basis of comparison and helps them evaluate the results of the Company’s on-going operations. These non-GAAP measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The projected non-GAAP net revenue ranges provided above include de minimis amounts of expected licensing revenue that is not included in GAAP revenue due to the effects of purchase accounting for acquisitions.

You May Also Be Interested In

• BMO Capital Starts Broadcom Limited (AVGO) at Outperform
• Broadcom said to seek over $60B in latest AI debt deal
• James Hardie sells Fermacell unit to Holcim for €840 million