Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its first quarter of fiscal year 2021, ended January 31, 2021, provided guidance for the second quarter of its fiscal year 2021 and announced its quarterly dividends.
“This quarter highlights the strength of our financial model with 14% year over year revenue growth translating to an increase in operating profit of 23%,” said Kirsten Spears, CFO of Broadcom Inc. “We continue to deliver strong free cash flow, approximately $3 billion in the quarter, representing 35% growth on a year on year basis.”
The Company’s cash and cash equivalents at the end of the first fiscal quarter were $9,552 million, compared to $7,618 million at the end of the prior quarter.
During the first fiscal quarter, the Company generated $3,113 million in cash from operations and spent $114 million on capital expenditures.
On December 31, 2020, the Company paid a cash dividend of $3.60 per share of common stock, totaling $1,468 million and a cash dividend of $20.00 per share of mandatory convertible preferred stock, totaling $75 million.
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.
Second Quarter Fiscal Year 2021 Business Outlook
Based on current business trends and conditions, the outlook for the second quarter of fiscal year 2021, ending May 2, 2021, is expected to be as follows:
- Second quarter revenue guidance of approximately $6.5 billion; and
- Second quarter Adjusted EBITDA guidance of approximately 59 percent of projected revenue
The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The Company is not readily able to provide a reconciliation of projected Adjusted EBITDA to projected net income without unreasonable effort. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
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