Broadcom Inc. Announces Second Quarter Financial Results for 2019, Quarterly Dividend and Updated Forecasts

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– Income from $ 5,517 million for the quarter, up 10% from the previous year

– Diluted EPS under GAAP of $ 1.64; Non-GAAP diluted EPS $ 5.21

– GAAP operating margin of 18%; Non-GAAP operating margin of 53%

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "– $ 2.542 million free cash flow, defined as cash flows from $ 2,667 million less capital expenditure of $ 125 million, up 20% from the previous year"data-reactid =" 14 ">– $ 2.542 million free cash flow, defined as cash flows from $ 2,667 million less capital expenditure of $ 125 million, up 20% from the previous year

– Quarterly dividend of $ 2.65 per share

– Purchase and elimination of 4.7 million shares for $ 1,330 million

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "– Forecast update for fiscal year 2019, including revenue outlook for $ 22.5 billion; $ 17.5 billion from semiconductor solutions and $ 5 billion from the infrastructure software"data-reactid =" 17 ">– Forecast update for fiscal year 2019, including revenue outlook for $ 22.5 billion; $ 17.5 billion from semiconductor solutions and $ 5 billion from the infrastructure software

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "SAN JOSE, California, June 13, 2019 / PRNewswire / – & nbsp; Broadcom Inc. (Nasdaq: AVGO), a global leader in technology that designs, develops, and delivers semiconductor and infrastructure software solutions, today released the financial results for its second quarter of fiscal 2019, closed the May 5, 2019, has announced a quarterly dividend and updated its forecasts for fiscal year 2019. "data-reactid =" 18 ">SAN JOSE, California, June 13, 2019 / PRNewswire / – Broadcom Inc. (Nasdaq: AVGO), a global leader in technology that designs, develops, and delivers semiconductor and infrastructure software solutions, today released the financial results for its second quarter of fiscal 2019, closed the May 5, 2019, announced a quarterly dividend and updated its guidance for its 2019 fiscal year.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" We executed according to the plan in the second quarter with the backward winds of networking offsetting anticipated headwinds of wireless" Hock Tan, President and Chief Executive Officer of Broadcom Inc., said, "We are currently seeing a general slowdown in demand, which we believe is attributable to lingering geopolitical uncertainties, as well as the effects of the restrictions. Our customers are actively reducing their inventory levels and we are taking a cautious stance for the rest of the year: we remain well positioned in our markets. semiconductors and software and we are confident that this franchise portfolio will continue to grow, with strong long-term revenue growth and increased free cash flow. "" data-reactid = "19"> "We performed in accordance with the plan in the second quarter, favorable networking winds offset the adverse headwinds of wireless." Hock Tan, President and Chief Executive Officer of Broadcom Inc., said, "We are currently seeing a general slowdown in demand, which we believe is attributable to lingering geopolitical uncertainties, as well as the effects of the restrictions. Our customers are actively reducing their inventory levels and we are taking a cautious stance for the rest of the year: we remain well positioned in our markets. different semiconductor and software sectors and we are confident that this franchise portfolio will continue to grow, with sustained long-term revenue growth and increased free cash flow. "

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" We achieved a record free cash flow of 2.5 billion dollars growing 20% from one year to the next in the second quarter" m said Tom KrauseBroadcom CFO Inc. "Despite a challenging market environment and updated revenue outlook, we still expect free cash flow to increase by a double-digit percentage for the year." also focused on the completion of the $ 8 billion share buybacks and disposals during the 2019 financial year. "" data-reactid = "20"> "We achieved record free cash flow from 2.5 billion dollars growing 20% from one year to the next in the second quarter" m said Tom KrauseBroadcom CFO Inc. "Despite a challenging market environment and updated revenue outlook, we still expect free cash flow to increase by a double-digit percentage for the year." also focused on the completion of the $ 8 billion share buybacks and eliminations during the 2019 financial year. "

Second Quarter of Fiscal Year 2019 – GAAP Results from Continuing Operations

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The net income has been $ 5,517 million, a decrease of 4.7% compared to $ 5,789 million previous quarter and an increase of 10.0% over $ 5,014 million in the same quarter of last year. "data-reactid =" 22 "> The net income has been $ 5,517 million, a decrease of 4.7% compared to $ 5,789 million previous quarter and an increase of 10.0% over $ 5,014 million in the same quarter last year.

<p class = "canvas-atom-canvas-text MB (1.0em) MB (0) – sm Mt (0.8em) – sm" type = "text" content = "The gross margin was $ 3.089 millionor 56.0% of net income. This compares to the gross margin of $ 3.208 millionor 55.4% of the net income of the previous quarter and the gross margin of $ 2.551 million, or 50.9% of sales, in the same quarter of last year. "data-reactid =" 23 "> The gross margin has been $ 3.089 millionor 56.0% of net income. This compares to the gross margin of $ 3.208 millionor 55.4% of the net income of the previous quarter and the gross margin of $ 2.551 million, or 50.9% of net revenues, in the same quarter last year.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The operating expenses have been $ 2,119 million. It compares with $ 2,653 million in the previous quarter and $ 1,350 million data in the same quarter of last year. "data-reactid =" 24 "> $ 2,119 million. It compares with $ 2,653 million in the previous quarter and $ 1,350 million in the same quarter last year.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The result of exploitation was $ 970 millionor 17.6% of net income. This compares to the operating result of $ 555 million, or 9.6% of the net sales of the previous quarter, and the operating profit of $ 1,201 million, or 24.0% of the net business turnover of the same quarter of last year. "data-reactid =" 25 "> The operating result has been $ 970 millionor 17.6% of net income. This compares to the operating result of $ 555 million, or 9.6% of the net sales of the previous quarter, and the operating profit of $ 1,201 million, or 24.0% of net income, in the same quarter last year.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Net result, which includes the impact of the activities abandoned, was $ 691 million, or $ 1.64 by diluted action. This compares to the net income of $ 471 million, or $ 1.12 diluted share, in the previous quarter, and a net income of $ 3.733 million, or $ 8.33 per diluted share, in the same quarter of last year. "data-reactid =" 26 "> The net result, which includes the impact of discontinued operations, was $ 691 million, or $ 1.64 by diluted action. This compares to the net income of $ 471 million, or $ 1.12 diluted share, in the previous quarter, and a net income of $ 3.733 million, or $ 8.33 per diluted share, in the same quarter last year.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Cash from operations was $ 2,667 million in the quarter, compared to $ 2,313 million data-reactid = "27"> Cash flow from operations was $ 2,667 million in the quarter, compared to $ 2,313 million in the same quarter last year.

GAAP results for the second quarter of fiscal year 2019				Change
(In millions of dollars, except per share data)	Q2 19	Q1 19	Q2 18	Q / Q	Y / Y
Net revenue	$ 5,517	$ 5,789	$ 5,014	-4.7%	+ 10.0%
Gross margin	56.0%	55.4%	50.9%	+ 60bps	+ 510bps
Operating expenses	$ 2,119	$ 2,653	$ 1,350	– $ 534	+ $ 769
Net revenue	$ 691	$ 471	$ 3,733	+ $ 220	– $ 3,042
Net income attributable to minority interests	$ –	$ –	$ 15	$ –	– $ 15
Net income attributable to common shares	$ 691	$ 471	$ 3,718	+ $ 220	– $ 3,027
Earnings per share – diluted	$ 1.64	$ 1.12	$ 8.33	+ $ 0.52	– $ 6.69

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Cash and cash equivalents of the Company at the end of the second quarter was $ 5,328 million, compared to $ 5,093 million "data-reactid =" 31 "> The Company's cash and cash equivalents at the end of the second quarter were $ 5,328 million, compared to $ 5,093 million at the end of the previous quarter.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "During the second fiscal quarter generated by the Company $ 2,667 million in cash operations and spent $ 1,330 million on share buybacks and eliminations consisting of $ 830 million redemptions of 2.9 million shares and 500 million dollars withholding payments related to the net awards of settled shares acquired during the quarter (representing approximately 1.8 million shares held), as well as $ 125 million "data-reactid =" 32 "> During the second quarter, the company generated $ 2,667 million in cash operations and spent $ 1,330 million on share buybacks and eliminations consisting of $ 830 million redemptions of 2.9 million shares and 500 million dollars withholding payments related to the net awards of settled shares acquired during the quarter (representing approximately 1.8 million shares held), as well as $ 125 million on capital expenditures.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "On March 29, 2019, the company paid a cash dividend of $ 2.65 per common share, totaling $ 1.057 million"data-reactid =" 33 "> On March 29, 2019, the company paid a cash dividend of $ 2.65 per common share, totaling $ 1.057 million.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Second Quarter of Fiscal Year 2019 – Non-GAAP Results from Continuing Operations"data-reactid =" 38 ">Second Quarter of Fiscal Year 2019 – Non-GAAP Results from Continuing Operations

The differences between the Company's GAAP and non-GAAP results are described generally in the "Non-GAAP Financial Measures" section below and are detailed in the financial reconciliation tables attached to this press release.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The gross margin of continuing operations was $ 3,971 millionor 72.0% of net income. This compares with the gross margin from continuing operations of $ 4,133 millionor 71.4% of the net sales of the previous quarter, and $ 3.342 million, or 66.6% of net revenues in the same quarter last year. "data-reactid =" 40 "> The gross margin on continuing operations has been $ 3,971 millionor 72.0% of net income. This compares with the gross margin from continuing operations of $ 4,133 millionor 71.4% of the net sales of the previous quarter, and $ 3.342 million, or 66.6% of net sales, in the same quarter last year.

Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" The operating result of the continuing operations has been $ 2,949 millionor 53.5% of net income. This compares with the operating profit of the continuing operations of $ 3.052 millionor 52.7% of the net sales of the previous quarter, and $ 2.455 million, or 48.9% of net revenues in the same quarter last year. "data-reactid =" 41 "> The operating profit from continuing operations was $ 2,949 millionor 53.5% of net income. This compares with the operating profit of the continuing operations of $ 3.052 millionor 52.7% of the net sales of the previous quarter, and $ 2.455 million, or 48.9% of net sales, in the same quarter last year.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The net result of continuing operations has been $ 2,334 million, or $ 5.21 by diluted action. This compares to the net income of $ 2,446 million, or $ 5.55 diluted share, in the previous quarter, and a net income of $ 2,243 million, or $ 4.88 per diluted share, in the same quarter of last year. "data-reactid =" 42 "> Net income from continuing operations was $ 2,334 million, or $ 5.21 by diluted action. This compares to the net income of $ 2,446 million, or $ 5.55 diluted share, in the previous quarter, and a net income of $ 2,243 million, or $ 4.88 per diluted share, in the same quarter last year.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Free cash flow from operations, defined as operations less capital expenditures, was $ 2.542 million in the quarter, compared to $ 2.124 million "data-reactid =" 43 "> Free cash flow from operations, defined as cash flow from operations minus investment expenses, was $ 2.542 million in the quarter, compared to $ 2.124 million in the same quarter last year.

Non-GAAP Second Quarter Fiscal Year 2019 Results				Change
(In millions of dollars, 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 revenue	$ 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 income by segment							Change
(In millions of dollars)	Q2 19		Q1 19		Q2 18		Q / Q	Y / Y
Semiconductor solutions	$ 4,088	74%	$ 4,374	76%	$ 4,537	90%	-7%	-ten%
Infrastructure Software	1,413	26	1,403	24	447	9	1%	216%
Intellectual property license	16	–	12	–	30	1	33%	-47%
Total net income	$ 5,517	100%	$ 5,789	100%	$ 5,014	100%

Business Outlook for the 2019 Fiscal Year

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Based on current trends and business conditions, prospects for continuing operations for fiscal year 2019, ending November 3, 2019, including CA contributions, should be as follows: & nbsp; "data-reactid =" 52 "> Based on trends and market conditions, the business outlook continues for fiscal year 2019, ending November 3, 2019, including CA contributions, should be:

	GAAP	Reconciliation of articles	Non-GAAP
Net revenue	$ 22,500 million	–	$ 22,500 million
Operating margin	14.75%	$ 8,470 million	52.50%
Net interest expense and other	$ 1,300 million	–	$ 1,300 million
Provision for (profit) income tax	-9%	20%	11%

Non-GAAP operating margin excludes $ 5,210 million amortization of intangible assets related to acquisitions, $ 2.2 billion stock-based compensation expense, $ 820 million restructuring charges, and $ 240 million acquisition costs; and

The non-GAAP tax provision is 20% higher than GAAP due to the tax consequences of the reconciliations provided above.

<p class = "canvas-atom-text-canvas Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The capital expenditure for the financial year should to be around 500 million dollars. For the year, depreciation should be about& nbsp; $ 600 million and total intangible amortization is expected to be approximately $ 5,235 million"data-reactid =" 60 "> The capital expenditure of the exercise should be about 500 million dollars. For the year, depreciation should be about $ 600 million and total intangible amortization is expected to be approximately $ 5,235 million.

The guidance provided above is only an estimate of what the Company believes is achievable as of the date of this release. Among other things, this guidance is based on an initial estimate of the accounting adjustments and allocations for CA, Inc., all of which can be revised for the remainder of the evaluation period (which will not exceed 12 months from acquisition of CA). The forecast excludes the impact of the upcoming merger, acquisition, sale and redemption activity that may occur in fiscal 2019. Actual results will vary from expectations and the differences could be material. The Company assumes no intention 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.

Quarterly dividend

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The board of directors of the company approved a quarterly payment dividend of $ 2.65 "data-reactid =" 63 "> The Board of Directors of the Company has approved a quarterly cash dividend of $ 2.65 per share.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The dividend is payable on July 2, 2019 shareholders registered at the close of business (17:00) Eastern time sure June 24, 2019"data-reactid =" 64 "> The dividend is payable on July 2, 2019 shareholders registered at the close of business (17:00) Eastern time sure June 24, 2019.

Conference Call on Financial Results

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Broadcom Inc. will hold a teleconference to review its financial results for the second quarter of fiscal year 2019, ended on May 5, 2019, and discuss the orientations for the 2019 exercise, today at 2:00 p.m.. Pacific weather. Those wishing to access the call should dial (866) 310-8712; International +1 (720) 634-2946. The access code is 3044229. A retransmission of the call will be accessible for a week after the call. To access the replay, call (855) 859-2056; International +1 (404) 537-3406; and reference the access code: 3044229. A webcast of the teleconference will also be available in the "Investors" section of the Broadcom website at the address www.broadcom.com. "data-reactid =" 66 "> Broadcom Inc. will hold a conference call to review its financial results for the second quarter of fiscal year 2019, closed on May 5, 2019and discuss the directions for fiscal 2019, today to 2:00 p.m.. Pacific weather. Those wishing to access the call should dial (866) 310-8712; International +1 (720) 634-2946. The access code is 3044229. A retransmission of the call will be accessible for a week after the call. To access the replay, call (855) 859-2056; International +1 (404) 537-3406; and reference the access code: 3044229. A webcast of the call will also be available in the "Investors" section of the Broadcom website at www.broadcom.com.

Basis of presentation

Mb (0) – sm Mt (0.8em) – sm "type =" text "content =" Broadcom Inc. is the successor of Broadcom Limited for financial information from the close of trading on April 4, 2018. Information provided for fiscal years beginning in the quarter ended May 6, 2018, relates to Broadcom Inc. and, for prior years, Broadcom Limited. Unless the context otherwise requires, this press release refers to "Broadcom", "the company", "our", "our", "our" and similar terms, which apply to Broadcom Inc. and, before that date, to our society. its predecessor, Broadcom Limited. "data-reactid =" 68 "> Broadcom Inc. is the successor to Broadcom Limited for the purpose of providing financial information as of the close of trading. April 4, 2018. Information provided for fiscal years beginning in the quarter ended May 6, 2018, relates to Broadcom Inc. and, for prior years, Broadcom Limited. Unless the context otherwise requires, this press release refers to "Broadcom", "the company", "our", "our", "our" and similar terms, which apply to Broadcom Inc. and, before that date, to our society. predecessor, Broadcom Limited.

The Company's financial results include contributions from continuing operations of CA, Inc. beginning in the first quarter of fiscal 2019. The financial results of operations classified as discontinued operations in the Company's financial statements are not included. in the results presented above. , unless otherwise stated.

Due to the company's 52/53 week reporting cycle, the 2018 fiscal year included an extra week in the first quarter, compared to fiscal year 2019.

Non-GAAP financial measures

In addition to GAAP reporting, Broadcom provides investors with net income, net income, operating income, gross margin, operating expenses, cash flow and other data on a non-GAAP basis. . This non-GAAP information includes the effect, if any, of purchase accounting on revenue and excludes amortization of intangible assets related to acquisitions, stock-based compensation expense, restructuring charges, depreciation and disposal, acquisition-related costs, including integration costs, purchase accounting effect on inventories, litigation settlement, impairment of investments, debt-related costs, gain (loss) on extinguishment of debt gains on investments, income (loss) from discontinued operations and reconciliation adjustments for non-GAAP taxes. Management does not believe these items reflect the underlying performance of the Company. Internally, these non-GAAP measures are important measures used by management to assess the company's fundamental operating performance, establish internal budgets, calculate the return on investment of development programs and growth initiatives, compare performance against other companies, and evaluate the performance of the company. internal forecasts and targeted business models, strategic planning, evaluation and valuation of potential candidates for acquisitions and comparison of their activities with the company's business, as well as external comparison of performance with competitors of the society. The exclusion of these items and other similar items in Broadcom's non-GAAP financial results should not be interpreted to imply that such items are non-recurring, infrequent or unusual. Free cash flow measures have limitations because they omit certain components of the general statement of cash flows and do not represent the residual cash flows available for discretionary spending. Investors should not consider the presentation of free cash flow measures as implying that shareholders have the right to dispose of such cash. Broadcom's free cash flow may not be calculated in a manner comparable to similar measures used by other companies.

Broadcom believes that this non-GAAP financial information provides additional information on the current performance of the Company. As a result, Broadcom provides this information to investors to provide them with a more consistent basis for comparison and to help them evaluate the results of the ongoing operations of the company and to allow for more meaningful comparisons over a period of time. 39; another. These non-GAAP measures are provided in addition to, and not a substitute for or superior to, financial performance measures prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial data is included in the additional financial information attached to this press release.

About Broadcom Inc.

<p class = "web-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Broadcom Inc. (AVGO), a Delaware company headquartered in San Jose, California, is a global technology leader that designs, develops and delivers a broad range of semiconductor software and infrastructure software solutions. Broadcom's industry-leading product portfolio serves critical markets, including data centers, networks, enterprise software, broadband, wireless, storage and networking. industry. Our solutions include storage and storage in data centers, enterprise software and mainframes focused on automation, surveillance and security, smartphone components, telecommunications and networking. automation of factories. "Data-reactid =" 75 "> Broadcom Inc. (AVGO) Delaware company headquartered in San Jose, California, is a global technology leader that designs, develops and delivers a broad range of semiconductor software and infrastructure software solutions. Broadcom's industry-leading product portfolio serves critical markets, including data centers, networks, enterprise software, broadband, wireless, storage and networking. industry. Our solutions include networking and storage of data centers, enterprise software and mainframe systems focused on automation, surveillance and security, smartphone components, telecommunications and networking. 39, automation of factories.

Caution regarding forward-looking statements

Cette annonce contient des déclarations prospectives (y compris au sens de la Section 21E du Securities Exchange Act des États-Unis de 1934, telle que modifiée, et de la Section 27A du Securities Act des États-Unis de 1933, telle que modifiée) concernant Broadcom. Ces déclarations incluent, mais ne sont pas limitées à, des déclarations qui traitent de nos performances commerciales et financières futures attendues et d'autres déclarations identifiées par des termes tels que "sera", "s'attendre", "croire", "anticiper", "estimer", "devrait" "," a l'intention "," planifier "," potentiel "," prévoir "," projet "," objectif "et autres mots, expressions ou expressions similaires. Ces déclarations prospectives sont basées sur les attentes et convictions actuelles de la direction de Broadcom, ainsi que sur les hypothèses émises et les informations actuellement disponibles, relatives à la direction, aux tendances du marché et à la situation du marché, et comportent des risques et des incertitudes, dont beaucoup sont hors du contrôle de la société et de la direction, et pouvant entraîner une différence significative entre les résultats réels et ceux contenus dans les déclarations prospectives. En conséquence, vous ne devez pas vous fier indûment à de telles déclarations.

Les incertitudes particulières susceptibles d’affecter de manière importante les résultats futurs incluent les risques liés à: notre acquisition de CA, notamment (1) des difficultés potentielles de maintien en poste des employés, (2) des coûts, charges ou dépenses inattendus, et (3) notre capacité à intégrer avec succès les activités de CA et obtenir les avantages escomptés de la transaction; toute perte de nos clients importants et les fluctuations dans le calendrier et le volume d'une demande importante de la part des clients; notre dépendance vis-à-vis de la sous-traitance et de la chaîne d’approvisionnement; toute autre acquisition que nous pourrions réaliser, y compris l'intégration de sociétés acquises à nos activités existantes et notre capacité à obtenir les avantages, les perspectives de croissance et les synergies attendus de ces acquisitions; conditions et préoccupations économiques mondiales; réglementations gouvernementales et restrictions commerciales; notre capacité à estimer avec précision la demande des clients et à adapter notre chaîne de fabrication et notre chaîne logistique en conséquence; notre endettement important et la nécessité de générer des flux de trésorerie suffisants pour assurer le service et le remboursement de cette dette; la dépendance et les risques associés aux distributeurs de nos produits; la dépendance vis-à-vis de la haute direction et notre capacité à attirer et à retenir du personnel qualifié; conditions politiques et économiques internationales; notre dépendance à un nombre limité de fournisseurs; les fluctuations trimestrielles et annuelles des résultats d'exploitation; le montant et la fréquence de nos rachats d'actions; la cyclicité dans l'industrie des semi-conducteurs ou dans nos marchés cibles; notre performance concurrentielle et notre capacité à continuer à obtenir des gains de conception avec nos clients, ainsi que le calendrier de toute victoire de conception; des interruptions prolongées de nos installations de fabrication ou d’autres activités importantes de nos sous-traitants ou de nos sous-traitants; notre capacité à améliorer notre efficacité et notre qualité de fabrication; participation à des procédures judiciaires ou administratives; notre dépendance à l'égard de fournisseurs de services externalisés pour certains services commerciaux clés et leur capacité à répondre à nos besoins; notre capacité à maintenir ou à améliorer la marge brute; notre capacité à protéger notre propriété intellectuelle et l'imprévisibilité de tout frais de litige associé; compatibilité de nos produits logiciels avec des environnements d'exploitation, des plates-formes ou des produits tiers; notre capacité à conclure des contrats de licence de logiciel satisfaisants; les ventes à nos clients gouvernementaux; la disponibilité des logiciels tiers utilisés dans nos produits; utilisation de sources de code open source dans nos produits; tous les frais ou dommages à la réputation associés à la résolution des réclamations de garantie et d'indemnisation des produits du client; notre capacité à vendre à de nouveaux types de clients et à suivre le rythme des avancées technologiques; l'acceptation par le marché des produits finaux dans lesquels nos produits sont conçus; notre capacité à nous protéger contre une atteinte aux systèmes de sécurité; les changements de normes comptables; les fluctuations des taux de change; nos provisions pour impôts sur les bénéfices et les charges fiscales totales, les lois qui pourraient avoir une incidence sur nos charges fiscales totales et notre capacité à maintenir des allègements fiscaux dans certaines juridictions; et d'autres événements et tendances à l'échelle nationale, régionale et mondiale, notamment à caractère politique, économique, commercial, concurrentiel et réglementaire.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Nos dépôts à la SEC, que vous pouvez obtenir gratuitement sur le site Web de la SEC à http://www.sec.gov, discutez de certains des facteurs de risque importants qui pourraient avoir une incidence sur nos activités, nos résultats d’exploitation et notre situation financière. Les résultats réels peuvent différer des estimations fournies. Nous déclinons toute intention ou obligation de mettre à jour ou de réviser publiquement les estimations et autres déclarations prospectives faites dans la présente annonce, que ce soit à la suite de nouvelles informations, d'événements futurs ou autrement, sauf si la loi l'exige. "Data-reactid = "79"> Nos documents déposés auprès de la SEC, que vous pouvez obtenir gratuitement sur son site Web à l'adresse http://www.sec.gov, traitent de certains des facteurs de risque importants qui peuvent affecter nos activités, nos résultats d'exploitation et notre situation financière. Les résultats réels peuvent différer des estimations fournies. Nous ne prenons aucune intention ni obligation de mettre à jour ou de réviser publiquement les estimations et autres déclarations prospectives faites dans cette annonce, que ce soit à la suite de nouvelles informations, d'événements futurs ou de toute autre manière, sauf: comme requis par la loi.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Contact:
Broadcom Inc.
Beatrice F. Russotto
Relations avec les investisseurs
408-433-8000 & nbsp;
[email protected]"data-reactid =" 80 ">Contact:
Broadcom Inc.
Beatrice F. Russotto
Relations avec les investisseurs
408-433-8000
[email protected]

BROADCOM INC.
ÉTATS OPÉRATIONNELS CONSOLIDÉS RÉSUMÉS – NON AUDITÉS
(EN MILLIONS, SAUF DONNÉES PAR ACTION)


	Trimestre fiscal terminé			Deux trimestres fiscaux terminés
	Le 5 mai,	3 février	Le 6 mai,	Le 5 mai,	Le 6 mai,
	2019	2019	2018	2019	2018

Revenu net	5 517 $	5 789 $	5 014 $	11 306 $	10 341 $
Coût du revenu:
Coût du revenu	1 592	1,692	1,696	3 284	3 595
Purchase accounting effect on inventory	–	–	–	–	70
Amortization of acquisition-related intangible assets	826	833	765	1,659	1,480
Restructuring charges	ten	56	2	66	17

Total cost of revenue	2,428	2,581	2,463	5,009	5,162

Gross margin	3,089	3,208	2,551	6,297	5,179

Research and development	1,151	1,133	936	2,284	1,861
Selling, general and administrative	419	471	294	890	585
Amortization of acquisition-related intangible assets	473	476	67	949	406
Restructuring, impairment and disposal charges	76	573	53	649	183

Total operating expenses	2,119	2,653	1,350	4,772	3,035

Operating income	970	555	1,201	1,525	2,144
Interest expense	(376)	(345)	(148)	(721)	(331)
Other income, net	63	68	46	131	81

Income from continuing operations before income taxes	657	278	1,099	935	1,894
Benefit from income taxes	(36)	(203)	(2,637)	(239)	(8,423)

Income from continuing operations	693	481	3,736	1,174	10,317
Loss from discontinued operations, net of income taxes	(2)	(dix)	(3)	(12)	(18)

Net income	691	471	3,733	1,162	10,299
Net income attributable to noncontrolling interest ⁽¹⁾	–	–	15	–	351

Net income attributable to common stock	$ 691	$ 471	$ 3,718	$ 1,162	$ 9,948


Basic income per share:
Income per share from continuing operations	$ 1.75	$ 1.20	$ 8.84	$ 2.94	$ 24.01
Loss per share from discontinued operations	(0.01)	(0.03)	(0.01)	(0.03)	(0.04)
Net income per share	$ 1.74	$ 1.17	$ 8.83	$ 2.91	$ 23.97

Diluted income per share⁽²⁾:
Income per share from continuing operations	$ 1.64	$ 1.15	$ 8.34	$ 2.80	$ 23.03
Loss per share from discontinued operations	–	(0.03)	(0.01)	(0.03)	(0.04)
Net income per share	$ 1.64	$ 1.12	$ 8.33	$ 2.77	$ 22.99

Shares used in per share calculations:
De base	397	401	421	399	415
Diluted	422	419	448	420	448

Stock-based compensation expense included in continuing operations:
Cost of revenue	$ 41	$ 34	$ 21	$ 75	$ 41
Research and development	371	311	205	682	408
Selling, general and administrative	132	120	70	252	146

Total stock-based compensation expense	$ 544	$ 465	$ 296	$ 1,009	$ 595



(1) In connection with the redomiciliation to the United States on April 4, 2018, or the Redomiciliation, all outstanding exchangeable limited partnership units, or LP Units, in Broadcom Cayman L.P. were exchanged for common stock of Broadcom on a one-for-one basis and the noncontrolling interest, or NCI, was eliminated. Net income attributable to NCI prior to the Redomiciliation represents approximately 5% of net income attributable to LP Units.

(2) There were no LP Units outstanding during the fiscal quarters ended May 5, 2019, February 3, 2019, or two fiscal quarters ended May 5, 2019 due to the Redomiciliation. The diluted income per share calculations include approximately 14 million and 18 million LP Units for the fiscal quarter and two fiscal quarters ended May 6, 2018, respectively.

BROADCOM INC.
FINANCIAL RECONCILIATION: GAAP TO NON-GAAP – UNAUDITED
(IN MILLIONS)


	Fiscal Quarter Ended			Two Fiscal Quarters Ended
	May 5,	February 3,	May 6,	May 5,	May 6,
	2019	2019	2018	2019	2018


Net revenue on GAAP basis	$ 5,517	$ 5,789	$ 5,014	$ 11,306	$ 10,341
Acquisition-related purchase accounting revenue adjustment ⁽¹⁾	–	–	3	–	7

Net revenue on non-GAAP basis	$ 5,517	$ 5,789	$ 5,017	$ 11,306	$ 10,348


Gross margin on GAAP basis	$ 3,089	$ 3,208	$ 2,551	$ 6,297	$ 5,179
Acquisition-related purchase accounting revenue adjustment ⁽¹⁾	–	–	3	–	7
Purchase accounting effect on inventory	–	–	–	–	70
Amortization of acquisition-related intangible assets	826	833	765	1,659	1,480
Stock-based compensation expense	41	34	21	75	41
Restructuring charges	ten	56	2	66	17
Acquisition-related costs	5	2	–	7	2

Gross margin on non-GAAP basis	$ 3,971	$ 4,133	$ 3,342	$ 8,104	$ 6,796


Research and development on GAAP basis	$ 1,151	$ 1,133	$ 936	$ 2,284	$ 1,861
Stock-based compensation expense	371	311	205	682	408
Acquisition-related costs	1	2	–	3	3

Research and development on non-GAAP basis	$ 779	$ 820	$ 731	$ 1,599	$ 1,450


Selling, general and administrative expense on GAAP basis	$ 419	$ 471	$ 294	$ 890	$ 585
Stock-based compensation expense	132	120	70	252	146
Acquisition-related costs	44	90	68	134	119

Selling, general and administrative expense on non-GAAP basis	$ 243	$ 261	$ 156	$ 504	$ 320


Total operating expenses on GAAP basis	$ 2,119	$ 2,653	$ 1,350	$ 4,772	$ 3,035
Amortization of acquisition-related intangible assets	473	476	67	949	406
Stock-based compensation expense	503	431	275	934	554
Restructuring, impairment and disposal charges	76	573	53	649	183
Acquisition-related costs	45	92	68	137	122

Total operating expenses on non-GAAP basis	$ 1,022	$ 1,081	$ 887	$ 2,103	$ 1,770


Operating income on GAAP basis	$ 970	$ 555	$ 1,201	$ 1,525	$ 2,144
Acquisition-related purchase accounting revenue adjustment ⁽¹⁾	–	–	3	–	7
Purchase accounting effect on inventory	–	–	–	–	70
Amortization of acquisition-related intangible assets	1,299	1,309	832	2,608	1,886
Stock-based compensation expense	544	465	296	1,009	595
Restructuring, impairment and disposal charges	86	629	55	715	200
Acquisition-related costs	50	94	68	144	124

Operating income on non-GAAP basis	$ 2,949	$ 3,052	$ 2,455	$ 6,001	$ 5,026


Interest expense on GAAP basis	$ (376)	$ (345)	$ (148)	$ (721)	$ (331)
Debt-related costs	26	–	–	26	32

Interest expense on non-GAAP basis	$ (350)	$ (345)	$ (148)	$ (695)	$ (299)


Other income, net on GAAP basis	$ 63	$ 68	$ 46	$ 131	$ 81
Gains on investments	(40)	(27)	(4)	(67)	(4)

Other income, net on non-GAAP basis	$ 23	$ 41	$ 42	$ 64	$ 77


Income from continuing operations before income taxes on GAAP basis	$ 657	$ 278	$ 1,099	$ 935	$ 1,894
Acquisition-related purchase accounting revenue adjustment ⁽¹⁾	–	–	3	–	7
Purchase accounting effect on inventory	–	–	–	–	70
Amortization of acquisition-related intangible assets	1,299	1,309	832	2,608	1,886
Stock-based compensation expense	544	465	296	1,009	595
Restructuring, impairment and disposal charges	86	629	55	715	200
Acquisition-related costs	50	94	68	144	124
Debt-related costs	26	–	–	26	32
Gains on investments	(40)	(27)	(4)	(67)	(4)

Income before income taxes on non-GAAP basis	$ 2,622	$ 2,748	$ 2,349	$ 5,370	$ 4,804


Benefit from income taxes on GAAP basis	$ (36)	$ (203)	$ (2,637)	$ (239)	$ (8,423)
Non-GAAP tax reconciling adjustments	324	505	2,743	829	8,639

Provision for income taxes on non-GAAP basis	$ 288	$ 302	$ 106	$ 590	$ 216


Net income on GAAP basis	$ 691	$ 471	$ 3,733	$ 1,162	$ 10,299
Acquisition-related purchase accounting revenue adjustment ⁽¹⁾	–	–	3	–	7
Purchase accounting effect on inventory	–	–	–	–	70
Amortization of acquisition-related intangible assets	1,299	1,309	832	2,608	1,886
Stock-based compensation expense	544	465	296	1,009	595
Restructuring, impairment and disposal charges	86	629	55	715	200
Acquisition-related costs	50	94	68	144	124
Debt-related costs	26	–	–	26	32
Gains on investments	(40)	(27)	(4)	(67)	(4)
Non-GAAP tax reconciling adjustments	(324)	(505)	(2,743)	(829)	(8,639)
Discontinued operations, net of income taxes	2	ten	3	12	18

Net income on non-GAAP basis	$ 2,334	$ 2,446	$ 2,243	$ 4,780	$ 4,588



Shares used in per share calculation – diluted on GAAP basis	422	419	448	420	448
Non-GAAP adjustment ⁽²⁾	26	22	12	25	11

Shares used in per share calculation – diluted on non-GAAP basis	448	441	460	445	459


Net income on non-GAAP basis	$ 2,334	$ 2,446	$ 2,243	$ 4,780	$ 4,588
Interest expense on non-GAAP basis	350	345	148	695	299
Provision for income taxes on non-GAAP basis	288	302	106	590	216
Depreciation	142	143	128	285	254

Adjusted EBITDA	$ 3,114	$ 3,236	$ 2,625	$ 6,350	$ 5,357


Net cash provided by operating activities	$ 2,667	$ 2,132	$ 2,313	$ 4,799	$ 3,998
Purchases of property, plant and equipment	(125)	(99)	(189)	(224)	(409)

Free cash flow	$ 2,542	$ 2,033	$ 2,124	$ 4,575	$ 3,589


	Fiscal Quarter Ending
	August 4,	November 3,
Expected fully diluted share count:	2019	2019

Shares used in per share calculation – diluted on GAAP basis	419	420
Non-GAAP adjustment ⁽²⁾	25	23

Shares used in per share calculation – diluted on non-GAAP basis	444	443


(1) Amounts represent licensing revenue not included in GAAP net revenue as a result of the effect of purchase accounting for acquisitions.

(2) Non-GAAP adjustment for number of shares used in the diluted per share calculations excludes the impact of stock-based compensation expense expected to be incurred in future periods and not yet recognized in the financial statements, which would otherwise be assumed to be used to repurchase shares under the GAAP treasury stock method.

BROADCOM INC.
CONDENSED CONSOLIDATED BALANCE SHEETS – UNAUDITED
(IN MILLIONS)


	May 5,	November 4,
	2019	2018

ASSETS

Current assets:
Trésorerie et équivalents de trésorerie	$ 5,328	$ 4,292
Trade accounts receivable, net	3,484	3,325
Inventory	1,034	1,124
Other current assets	831	366

Total current assets	10,677	9,107

Long-term assets:
Property, plant and equipment, net	2,654	2,635
Bonne volonté	36,662	26,913
Immobilisations incorporelles nettes	20,188	10,762
Other long-term assets	735	707

Total assets	$ 70,916	$ 50,124



LIABILITIES AND STOCKHOLDERS' EQUITY

Passif à court terme:
Accounts payable	$ 759	$ 811
Employee compensation and benefits	478	715
Current portion of long-term debt	3,537	–
Other current liabilities	3,729	812

Total current liabilities	8,503	2,338

Long-term liabilities:
Long-term debt	34,011	17,493
Other long-term liabilities	6,230	3,636

Total liabilities	48,744	23,467


Stockholders' equity:
Common stock and additional paid-in capital	22,288	23,285
Retained earnings	–	3,487
Accumulated other comprehensive loss	(116)	(115)

Total stockholders' equity	22,172	26,657

Total liabilities and stockholders' equity	$ 70,916	$ 50,124

BROADCOM INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS – UNAUDITED
(IN MILLIONS)

	Fiscal Quarter Ended			Two Fiscal Quarters Ended
	May 5,	February 3,	May 6,	May 5,	May 6,
	2019	2019	2018	2019	2018
Cash flows from operating activities:
Net income	$ 691	$ 471	$ 3,733	$ 1,162	$ 10,299
Adjustments to reconcile net income to net cash provided by operating activities:
Amortissement des immobilisations incorporelles	1,305	1,316	836	2,621	1,894
Depreciation	142	143	128	285	254
Rémunération à base d'actions	544	465	296	1,009	595
Deferred taxes and other non-cash taxes	(94)	(379)	(2,702)	(473)	(8,534)
Non-cash restructuring, impairment and disposal charges	6	92	5	98	ten
Non-cash interest expense	14	13	6	27	12
Other	(39)	(21)	14	(60)	17
Changes in assets and liabilities, net of acquisitions and disposals:
Trade accounts receivable, net	193	68	(277)	261	(78)
Inventory	40	50	56	90	306
Accounts payable	30	(169)	91	(139)	(312)
Employee compensation and benefits	(6)	(458)	84	(464)	(292)
Contributions to defined benefit pension plans	–	–	–	–	(129)
Other current assets and current liabilities	(37)	506	70	469	354
Other long-term assets and long-term liabilities	(122)	35	(27)	(87)	(398)

Net cash provided by operating activities	2,667	2,132	2,313	4,799	3,998


Cash flows from investing activities:
Acquisitions of businesses, net of cash acquired	–	(16,027)	–	(16,027)	(4,786)
Proceeds from sales of businesses	–	957	–	957	782
Purchases of property, plant and equipment	(125)	(99)	(189)	(224)	(409)
Proceeds from disposals of property, plant and equipment	–	–	1	–	238
Purchases of investments	(5)	–	(5)	(5)	(249)
Proceeds from sales of investments	3	–	54	3	54
Other	21	(24)	(16)	(3)	(12)

Net cash used in investing activities	(106)	(15,193)	(155)	(15,299)	(4,382)


Cash flows from financing activities:
Proceeds from long-term borrowings	10,897	17,896	–	28,793	–
Repayment of debt	(12,000)	–	–	(12,000)	(856)
Payment of debt issuance costs	–	(46)	–	(46)	–
Other borrowings	1,044	531	–	1,575	–
Dividend and distribution payments	(1,057)	(1,067)	(766)	(2,124)	(1,521)
Repurchases of common stock – repurchase program	(830)	(3,436)	(347)	(4,266)	(347)
Shares repurchased for tax witholdings on vesting of equity awards	(500)	(77)	(2)	(577)	(2)
Issuance of common stock	121	62	80	183	114
Other	(1)	(1)	(12)	(2)	(21)

Net cash provided by (used in) financing activities	(2,326)	13,862	(1,047)	11,536	(2,633)


Net change in cash and cash equivalents	235	801	1,111	1,036	(3,017)
Cash and cash equivalents at the beginning of period	5,093	4,292	7,076	4,292	11,204
Cash and cash equivalents at end of period	$ 5,328	$ 5,093	$ 8,187	$ 5,328	$ 8,187

Supplemental disclosure of cash flow information:
Cash paid for interest	$ 189	$ 423	$ 1	$ 612	$ 233
Cash paid for income taxes	$ 425	$ 95	$ 87	$ 520	$ 196

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