During the second fiscal quarter the Company generated $2,667 million in cash from operations and spent $1,330 million on share repurchases and eliminations consisting of $830 million in repurchases of 2.9 million shares and $500 million on withholding tax payments related to net settled equity awards that vested in the quarter (representing approximately 1.8 million shares withheld), as well as $125 million on capital expenditures.
On March 29, 2019, the Company paid a cash dividend of $2.65 per share of common stock, totaling $1,057 million.
Second Quarter Fiscal Year 2019 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.
Gross margin from continuing operations was $3,971 million, or 72.0 percent of net revenue. This compares with gross margin from continuing operations of $4,133 million, or 71.4 percent of net revenue, in the prior quarter, and $3,342 million, or 66.6 percent of net revenue, in the same quarter last year.
Operating income from continuing operations was $2,949 million, or 53.5 percent of net revenue. This compares with operating income from continuing operations of $3,052 million, or 52.7 percent of net revenue, in the prior quarter, and $2,455 million, or 48.9 percent of net revenue, in the same quarter last year.
Net income from continuing operations was $2,334 million, or $5.21 per diluted share. This compares with net income of $2,446 million, or $5.55 per diluted share, in the prior quarter, and net income of $2,243 million, or $4.88 per diluted share, in the same quarter last year.
Free cash flow from operations, defined as cash from operations less capital expenditures, was $2,542 million in the quarter, compared to $2,124 million in the same quarter last year.
Second Quarter Fiscal Year 2019 Non-GAAP Results |
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|
| Change | ||
(Dollars in millions, except per share data) |
| Q2 19 |
| Q1 19 |
| Q2 18 |
| Q/Q |
| Y/Y |
Gross margin |
| 72.0% |
| 71.4% |
| 66.6% |
| +60bps |
| +540bps |
Operating expenses |
| $ 1,022 |
| $ 1,081 |
| $ 887 |
| -$ 59 |
| +$ 135 |
Net income |
| $ 2,334 |
| $ 2,446 |
| $ 2,243 |
| -$ 112 |
| +$ 91 |
Earnings per share - diluted |
| $ 5.21 |
| $ 5.55 |
| $ 4.88 |
| -$ 0.34 |
| +$ 0.33 |
Other Quarterly Data
Net revenue by segment |
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|
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|
|
| Change | ||
(Dollars in millions) |
| Q2 19 |
| Q1 19 |
| Q2 18 |
| Q/Q |
| Y/Y | |||||||||
Semiconductor solutions |
| $ 4,088 |
| 74% |
| $ 4,374 |
| 76% |
| $ 4,537 |
| 90% |
| -7% |
| -10% | |||
| Infrastructure software |
| 1,413 |
| 26 |
|
| 1,403 |
| 24 |
|
| 447 |
| 9 |
|
| 1% |
| 216% |
| Intellectual property licensing |
| 16 |
| - |
|
| 12 |
| - |
|
| 30 |
| 1 |
|
| 33% |
| -47% |
| Total net revenue |
| $ 5,517 |
| 100% |
|
| $ 5,789 |
| 100% |
|
| $ 5,014 |
| 100% |
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