AVGO Q1 2020 Earnings

Call Details

• Call Title: Broadcom Q1 2020 Earnings Call
• Date: March 12, 2020 at 9:00 PM UTC
• Management Team:
  • Beatrice Rosado (Director of Investor Relations)
  • Hock Tan (President and Chief Executive Officer)
  • Tom Krause (President and Chief Financial Officer)

Call Summary

Financial Performance

• Consolidated net revenue for Q1 was $5.9B, up 1% year-over-year.
• Semiconductor solutions revenue was $4.2B, down 4% year-over-year and down 8% quarter-over-quarter.
• Semiconductor solutions represented 72% of total revenue for the quarter.
• Infrastructure software revenue was $1.7B, up 19% year-over-year and up 39% quarter-over-quarter, representing 28% of revenue.
• Operating income from continuing operations was $3.08B, representing 52.6% of net revenue.
• Adjusted EBITDA was $3.27B, representing 55.7% of net revenue and excluding $146M of depreciation.
• Operating expenses were $1.19B and included approximately $80M of Symantec-related expenses expected to go away over the year.
• Free cash flow in the quarter was $2.21B, representing 37.8% of revenue.

Guidance

• Full-year fiscal 2020 guidance was withdrawn due to COVID-19 driven uncertainty until visibility returns to pre-COVID-19 levels.
• Second quarter fiscal 2020 net revenue is expected to be $5.7B, plus or minus $150M.
• The semiconductor business is expected to be virtually flat year-over-year in Q2 after prior year declines.
• Infrastructure software revenues are expected to be sustained sequentially in Q2 as the Symantec integration continues.
• Second quarter adjusted EBITDA is expected to be approximately $3.135B, or 55% of net revenue.
• No updated full-year free cash flow or revenue target was provided on the call.