• Quarterly GAAP gross margin of 53 percent; Quarterly non-GAAP gross margin from continuing operations of 61 percent
• Quarterly GAAP diluted EPS of $1.30; Quarterly non-GAAP diluted EPS from continuing operations of $2.41

SAN JOSE, Calif., and SINGAPORE, March 03, 2016 (GLOBE NEWSWIRE) -- Broadcom Limited (Nasdaq:AVGO), a leading semiconductor device supplier to the wired, wireless, enterprise storage, and industrial end markets, today reported financial results for the first quarter of its fiscal year 2016, ended January 31, 2016, and provided guidance for the second quarter of its fiscal year 2016. 

Recent Developments

Broadcom Limited is the successor to Avago Technologies Limited (“Avago”). Following Avago’s acquisition of Broadcom Corporation (“BRCM”) on February 1, 2016 (the “Acquisition”), Broadcom Limited became the ultimate parent company of Avago and BRCM. This is our first release of financial results following the Acquisition and relates solely to our predecessor, Avago, for the fiscal periods prior to the Acquisition. The guidance for future periods and other forward-looking information provided in this release relates to Broadcom Limited. Unless the context otherwise requires, references in this press release to “Broadcom,” “the Company,” “we,” “our,” “us” and similar terms are to Broadcom Limited from and after the effective time of the Acquisition and, prior to that time, to our predecessor, Avago. Broadcom’s financial results include results from Emulex Corporation (“Emulex”) starting in the third fiscal quarter of 2015 from the date of such acquisition. The financial results from businesses that have been classified as discontinued operations in the Company’s financial statements are not included in the results presented below, unless otherwise stated.

First Quarter Fiscal Year 2016 GAAP Results

Net revenue was $1,771 million, a decrease of 4 percent from $1,840 million in the previous quarter and an increase of 8 percent from $1,635 million in the same quarter last year.

Gross margin was $941 million, or 53 percent of net revenue. This compares with gross margin of $997 million, or 54 percent of net revenue in the prior quarter, and gross margin of $826 million, or 51 percent of net revenue in the same quarter last year.

Operating expenses were $466 million. This compares with $483 million in the prior quarter and $425 million for the same quarter last year.

Operating income was $475 million, or 27 percent of net revenue. This compares with operating income of $514 million, or 28 percent of net revenue, in the prior quarter, and $401 million, or 25 percent of net revenue, in the same quarter last year.

Net income, which includes the impact of discontinued operations, was $377 million, or $1.30 per diluted share. This compares with net income of $429 million, or $1.49 per diluted share, for the prior quarter, and $351 million, or $1.26 per diluted share in the same quarter last year. 

The Company’s cash balance at the end of the first fiscal quarter was $2,169 million, compared to $1,822 million at the end of the prior quarter.

The Company generated $474 million in cash from operations and spent $140 million on capital expenditures in the first fiscal quarter of 2016. The Company also received $68 million in cash from the completion of the sale of certain fiber optics subsystem manufacturing and related assets to a third party in the quarter.

On December 30, 2015, the Company paid a cash dividend of $0.44 per ordinary share, totaling $122 million.

First Quarter Fiscal Year 2016 Non-GAAP Results From Continuing Operations

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.

Net revenue from continuing operations was $1,782 million, a decrease of 4 percent from $1,853 million in the previous quarter, and an increase of 8 percent from $1,657 million in the same quarter last year.

Gross margin from continuing operations was $1,089 million, or 61 percent of net revenue. This compares with gross margin of $1,149 million, or 62 percent of net revenue, in the prior quarter, and gross margin of $974 million, or 59 percent of net revenue, in the same quarter last year. 

Operating income from continuing operations was $783 million, or 44 percent of net revenue. This compares with operating income from continuing operations of $811 million, or 44 percent of net revenue, in the prior quarter, and $681 million, or 41 percent of net revenue, in the same quarter last year.

Net income from continuing operations was $710 million, or $2.41 per diluted share. This compares with net income of $737 million, or $2.51 per diluted share last quarter, and net income of $596 million, or $2.09 per diluted share, in the same quarter last year.