Wed, Sep 11, 8:39 PM (100 days ago)
Broadcom Inc.'s quarterly report for the period ending August 4, 2024, reveals significant financial shifts following the VMware acquisition. Total net revenue surged to $13,072 million, a 47% increase from the prior year, driven by a substantial rise in infrastructure software revenue, which grew 200% due to VMware contributions. However, the company reported a net loss of $1,875 million, largely attributed to increased interest expenses and amortization related to acquisitions. Operating income fell to $3,788 million, down 2% year-over-year, impacted by rising operating expenses, including a 73% increase in R&D costs linked to workforce expansion post-acquisition. Cash generated from operations was robust at $14,358 million, although cash and equivalents decreased to $9,952 million due to significant outflows for acquisitions and dividends. Broadcom's debt has increased to $72,319 million, raising concerns about liquidity and financial flexibility, especially with ongoing restructuring and integration costs. The report highlights uncertainties in customer demand and macroeconomic conditions, emphasizing the need for careful management of resources and operational efficiency moving forward.