) generated revenues of $1.82 billion in the fourth quarter of
2011, down 6.4% year over year and down 7.0% sequentially, but
which surpassed Zacks Consensus Estimate of $1.79 billion and
management's projection of $1.8 billion.
In terms of end-markets, the Broadband Communications revenue
was down 3% sequentially due to decease in demand for DTV and
The Infrastructure & Networking business was down 13%
sequentially due to softness in Ethernet Switches and PHYs,
particularly in the enterprise and service provider segments
The Mobile and Wireless business was down 7% sequentially as
growth in 3G baseband and continued strong market share in wireless
connectivity combo chips was more than offset by softness in 2G
baseband and multimedia solutions.
On a product basis, product revenue declined to $1.9 billion
from $1.9 billion. Income from the Qualcomm agreement was flat at
51.7 million. License revenues were flat at $4.0 million.
: Product gross margin came in at 50.6%, up from 50.4% in the
previous quarter. Net income came in at $254 million or $0.45 per
diluted share compared to a net income of $266 million or $0.47 per
diluted share in the year-ago quarter and a net income of $270
million or $0.48 per share in the previous quarter. The net income
per share came reported in the quarter missed the Zacks Consensus
Estimate of $0.40.
For 2011, revenues came in $7.39, up 8.4% from a year ago. Net
income came in at $927 million or $1.65 per share compared to a net
income of $1.08 billion or $0.32 per share in 2010.
: During the quarter, Broadcom generated $482 million in cash from
operations and used $22.0 million for capital expenditures. The
company did not repurchase any shares in the quarter. Accounts
receivable days sales outstanding were 34 days in the quarter,
compared to 38 days in the previous quarter. Inventory levels
decreased $70 million from the previous quarter.
Broadcom ended the quarter with cash and equivalents of $4.2
billion, up from $2.4 billion at the end of third quarter. Broadcom
benefited from strong operating cash flows, a successful debt
offering of $500 million and roughly $200 million in net option
For 2011, Broadcom repurchased 17 million shares of our stock.
Broadcom returned $860 million in capital to shareholders in the
quarter as dividends and share repurchases.
: For the second quarter of 2012, Broadcom projects revenues
around $1.7 billion - $1.8 billion. Management expects revenues
from Broadband Communications and Mobile & Wireless segments
are expected to be down all segments to be down. Infrastructure and
Networking sales are expected to be roughly flat. Product gross
margin is expected to be flat. Product gross margin is projected to
be flat sequentially.
Broadcom continues to benefit from powerful trends in the
communications market driven by phenomenal growth of smartphones
around the globe. Management expects 5G Wi-Fi coming to market
opening up a wide array of opportunities.
The results led to a 1.89% increase in stock price in
after-market hours trading to close at $35.00.
BROADCOM CORP-A (
): Free Stock Analysis Report
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