) reported a net income of $160 million or 28 cents per diluted
share in the second quarter of 2012. Excluding one-time items,
earnings per share came in at 49 cents, easily beating the Zacks
Consensus Estimate of 43 cents.
Broadcom generated revenues of $1.971 billion in the second
quarter of 2012, an increase of 9.7% year over year and 7.9%
sequentially, and within management's projection of $1.9 billion -
Excluding the impact of acquisitions, revenue was up 5%
sequentially from a year ago.
In terms of end markets, the Broadband Communications revenue
was up 10% sequentially driven by growth in broadband access
solutions for both cable operators and telecommunications service
providers. This growth was partially offset by the anticipated
decline in Blu-ray and DTV.
Mobile & Wireless segments were up 3% from the first
quarter, better than management's expectations due to wireless
connectivity. Strong growth in Wi-Fi combos and 3G basebands more
than offset the anticipated softness in 2G basebands and multimedia
Smartphones continue to be growth drivers and management
continues to gain traction at Samsung, China Unicom, Vodafone,
Including the full quarter impact of NetLogic, revenue from
Infrastructure & Networking segment grew 18% sequentially.
Excluding NetLogic, revenues were approximately 6% driven
principally by growth in switching products.
On a product basis, product revenue were up 10.0% year over year
to $1.9 billion. Income from the Qualcomm agreement came in at $48
million, down from $52 million at the end of the year-ago quarter.
License revenues came in at $6 million.
: Product gross margin came in at 52.2%, up from 52.0% in the
previous quarter and 51.1% in the year-ago quarter.
: During the quarter, Broadcom generated $349 million in cash from
operations and used $50.0 million for capital expenditures. The
company did not repurchase any shares in the quarter.
Accounts receivable days sales outstanding were 38 days in the
quarter, flat with the previous quarter. Inventory levels came in
at $528 million, up from $421 million in the quarter.
Broadcom ended the quarter with cash and equivalents of $1.3
billion, flat with the December quarter. This was primarily due to
a net cash payment of $1.79 billion for BroadlLight and quarterly
dividend payment of $56 million.
: For the third quarter of 2012, Broadcom projects revenues
around $2.0 billion - $2.15 billion. The growth is expected to be
driven by the Broadband segment. Infrastructure & Networking
segment and other Mobile & Wireless segment are also expected
to grow while Product gross margin is expected to remain roughly
BROADCOM CORP-A (BRCM): Free Stock Analysis
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