- Revenue of $5,063 million or 13 percent growth from the year ago period

SAN JOSE, Calif., Sept. 6, 2018 — (PRNewswire) —  Broadcom Inc. (Nasdaq: AVGO), a leading semiconductor device supplier to the wired, wireless, enterprise storage, and industrial end markets, today reported financial results for its third quarter of fiscal year 2018, ended August 5, 2018, provided guidance for the fourth quarter of its fiscal year 2018 and announced a quarterly dividend.

"Datacenter demand is driving strong growth in more than 50 percent of our consolidated revenue," said Hock Tan, President and CEO of Broadcom Inc. "Through the strength of our franchise business model, we delivered another quarter of sustained revenues and strong free cash flows."

"During the quarter, we repurchased 24 million shares, returning approximately $5.38 billion to our stockholders," said Tom Krause, CFO of Broadcom. "Consistent with our stated capital allocation plan, we intend to return to stockholders 50 percent of the prior fiscal year free cash flow in the form of cash dividends. With the balance of our free cash flow, we have the financial flexibility to fund a combination of share repurchases and future acquisitions to expand earnings capacity."

Third Quarter Fiscal Year 2018 GAAP Results

Net revenue was $5,063 million, an increase of 1 percent from $5,014 million in the previous quarter and an increase of 13 percent from $4,463 million in the same quarter last year.

Gross margin was $2,619 million, or 51.7 percent of net revenue. This compares with gross margin of $2,551 million, or 50.9 percent of net revenue, in the prior quarter, and gross margin of $2,149 million, or 48.2 percent of net revenue, in the same quarter last year.

Operating expenses were $1,280 million. This compares with $1,350 million in the prior quarter and $1,501 million in the same quarter last year.

Operating income was $1,339 million, or 26.4 percent of net revenue. This compares with operating income of $1,201 million, or 24.0 percent of net revenue, in the prior quarter, and operating income of $648 million, or 14.5 percent of net revenue, in the same quarter last year.

Net income, which includes the impact of discontinued operations, was $1,196 million, or $2.71 per diluted share. This compares with net income of $3,733 million, or $8.33 per diluted share, in the prior quarter, and net income of $507 million, or $1.14 per diluted share, in the same quarter last year.

 

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