Broadcom Limited (AVGO) swung to a net profit for the quarter ended Apr. 30, 2017. The company has made a net profit of $440 million, or $ 1.05 a share in the quarter, against a net loss of $1,186 million, or $3.02 a share in the last year period. On an adjusted basis, net profit for the quarter was $1,666 million, when compared with $1,120 million in the last year period. Revenue during the quarter grew 18.33 percent to $4,190 million from $3,541 million in the previous year period. Gross margin for the quarter expanded 1762 basis points over the previous year period to 47.16 percent. Operating margin for the quarter period stood at positive 11.31 percent as compared to a negative 28.27 percent for the previous year period.
Operating income for the quarter was $474 million, compared with an operating loss of $1,001 million in the previous year period.
However, the adjusted operating income for the quarter stood at $1,853 million compared to $1,329 million in the prior year period. At the same time, adjusted operating margin improved 669 basis points in the quarter to 44.22 percent from 37.53 percent in the last year period.
“We delivered strong financial results for our second fiscal quarter with revenue, gross margin and EPS all above the top end of guidance” said Hock Tan, President and Chief executive officer of Broadcom Limited. “Anticipating that end markets will remain healthy, we expect third fiscal quarter revenue growth of approximately six percent sequentially, driven by solid growth from our wired segment and a seasonal second half ramp in our wireless segment.”
For the third-quarter 2017, Broadcom Limited expects revenue to be in the range of $4,370 million to $4,520 million and its adjusted revenue to be in the range of $4,375 million to $4,525 million.
Operating cash flow improves significantly
Broadcom Limited has generated cash of $2,936 million from operating activities during the first half, up 167.88 percent or $1,840 million, when compared with the last year period. The company has spent $812 million cash to meet investing activities during the first six months as against cash outgo of $10,292 million in the last year period.
The company has spent $967 million cash to carry out financing activities during the first six months as against cash inflow of $9,415 million in the last year period.
Cash and cash equivalents stood at $4,254 million as on Apr. 30, 2017, up 108.43 percent or $2,213 million from $2,041 million on May 01, 2016.
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