Avago Technologies Limited’s, Broadcom Corporation’s and our filings with the Securities and Exchange Commission (“SEC”), which you may obtain for free at the SEC’s website at http://www.sec.gov, discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no intent or obligation to publicly update or revise any of these forward looking statements, whether as a result of new information, future events or otherwise, except as required by law.
| BROADCOM LIMITED | ||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - UNAUDITED | ||||||||||||
| (IN MILLIONS, EXCEPT PER SHARE DATA) | ||||||||||||
| Fiscal Quarter Ended | ||||||||||||
| January 31, | November 1, | February 1, | ||||||||||
| 2016 | 2015 | 2015 | ||||||||||
| Net revenue | $ | 1,771 | $ | 1,840 | $ | 1,635 | ||||||
| Cost of products sold: | ||||||||||||
| Cost of products sold | 699 | 712 | 690 | |||||||||
| Purchase accounting effect on inventory | - | - | 4 | |||||||||
| Amortization of intangible assets | 130 | 129 | 113 | |||||||||
| Restructuring charges | 1 | 2 | 2 | |||||||||
| Total cost of products sold | 830 | 843 | 809 | |||||||||
| Gross margin | 941 | 997 | 826 | |||||||||
| Research and development | 267 | 287 | 235 | |||||||||
| Selling, general and administrative | 114 | 118 | 117 | |||||||||
| Amortization of intangible assets | 54 | 63 | 59 | |||||||||
| Restructuring and disposal charges | 31 | 15 | 14 | |||||||||
| Total operating expenses | 466 | 483 | 425 | |||||||||
| Operating income | 475 | 514 | 401 | |||||||||
| Interest expense | (84 | ) | (41 | ) | (54 | ) | ||||||
| Other income, net | 3 | 12 | 4 | |||||||||
| Income from continuing operations before income taxes | 394 | 485 | 351 | |||||||||
| Provision for income taxes | 17 | 15 | 13 | |||||||||
| Income from continuing operations | 377 | 470 | 338 | |||||||||
| Income (loss) from discontinued operations, net of income taxes | - | (41 | ) | 13 | ||||||||
| Net income | $ | 377 | $ | 429 | $ | 351 | ||||||
| Basic income per share: | ||||||||||||
| Income per share from continuing operations | $ | 1.36 | $ | 1.70 | $ | 1.33 | ||||||
| Income (loss) per share from discontinued operations, net of income taxes | $ | - | $ | (0.15 | ) | $ | 0.05 | |||||
| Net income per share | $ | 1.36 | $ | 1.55 | $ | 1.38 | ||||||
| Diluted income per share: | ||||||||||||
| Income per share from continuing operations | $ | 1.30 | $ | 1.64 | $ | 1.22 | ||||||
| Income (loss) per share from discontinued operations, net of income taxes | $ | - | $ | (0.15 | ) | $ | 0.04 | |||||
| Net income per share | $ | 1.30 | $ | 1.49 | $ | 1.26 | ||||||
| Shares used in per share calculations: | ||||||||||||
| Basic | 277 | 276 | 255 | |||||||||
| Diluted | 289 | 287 | 278 | |||||||||
| Share-based compensation expense included in continuing operations: | ||||||||||||
| Cost of products sold | $ | 6 | $ | 7 | $ | 6 | ||||||
| Research and development | 28 | 30 | 19 | |||||||||
| Selling, general and administrative | 23 | 26 | 24 | |||||||||
| Total share-based compensation expense | $ | 57 | $ | 63 | $ | 49 | ||||||
