Company profile

Ticker
AVGO, AVGOP
Exchange
CEO
Hock E. Tan
Employees
Incorporated
Location
Fiscal year end
Former names
Broadcom Ltd
SEC CIK

AVGO stock data

(
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Calendar

11 Sep 20
26 Nov 20
1 Nov 21

News

Quarter (USD) Aug 20 May 20 Feb 20 Aug 19
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Nov 19 Nov 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS

Financial data from Broadcom earnings reports.

Date Owner Security Transaction Code 10b5-1 $Price #Shares $Value #Remaining
15 Nov 20 Krause Thomas H. Common Stock, $0.001 par value Payment of exercise Dispose F No 373.5 2,480 926.28K 51,386
15 Nov 20 Krause Thomas H. Common Stock, $0.001 par value Option exercise Aquire M No 0 2,500 0 53,866
15 Nov 20 Krause Thomas H. RSU Common Stock, $0.001 par value Option exercise Dispose M No 0 2,500 0 0
10 Nov 20 Tan Hock E Common Stock, $0.001 par value Sell Dispose S Yes 372.285 2,813 1.05M 232,602
10 Nov 20 Tan Hock E Common Stock, $0.001 par value Sell Dispose S Yes 371.159 2,100 779.43K 235,415
10 Nov 20 Tan Hock E Common Stock, $0.001 par value Sell Dispose S Yes 370.313 2,793 1.03M 237,515
10 Nov 20 Tan Hock E Common Stock, $0.001 par value Sell Dispose S Yes 369.189 1,543 569.66K 240,308
10 Nov 20 Tan Hock E Common Stock, $0.001 par value Sell Dispose S Yes 368.319 8,408 3.1M 241,851
10 Nov 20 Tan Hock E Common Stock, $0.001 par value Sell Dispose S Yes 367.124 6,240 2.29M 250,259
10 Nov 20 Tan Hock E Common Stock, $0.001 par value Sell Dispose S Yes 366.344 7,306 2.68M 256,499

Financial report summary

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Risks
  • The ongoing COVID-19 pandemic has, and will likely continue to, negatively impact the global economy and disrupt normal business activity, which may have an adverse effect on our results of operations.
  • The majority of our sales come from a small number of customers and a reduction in demand or loss of one or more of our significant customers may adversely affect our business.
  • We purchase a significant amount of the materials used in our products from a limited number of suppliers.
  • Adverse global economic conditions could have a negative effect on our business, results of operations and financial condition and liquidity.
  • Our business would be adversely affected by the departure of existing members of our senior management team.
  • We may pursue acquisitions, investments, joint ventures and dispositions, which could adversely affect our results of operations.
  • Our operating results are subject to substantial quarterly and annual fluctuations.
  • We operate in the highly cyclical semiconductor industry, which is subject to significant downturns.
  • Winning business in the semiconductor solutions industry is subject to a lengthy process that often requires us to incur significant expense, from which we may ultimately generate no revenue.
  • Competition in our industries could prevent us from growing our revenue.
  • We may be unable to maintain appropriate manufacturing capacity or product yields at our own manufacturing facilities, which could adversely affect our relationships with our customers, and our business, financial condition and results of operations.
  • Our gross margin is dependent on a number of factors, including our product mix, price erosion, acquisitions we may make, level of capacity utilization and commodity prices.
  • If our software products do not remain compatible with ever-changing operating environments, platforms, or third-party products, demand for our products and services could decrease, which could materially adversely affect our business.
  • Failure to enter into software license agreements on a satisfactory basis could materially adversely affect our business.
  • Our sales to government clients subject us to uncertainties regarding fiscal funding approvals, renegotiations or terminations at the discretion of the government, as well as audits and investigations, which could result in litigation, penalties and sanctions including early termination, suspension and debarment.
  • Certain software that we use in our products is licensed from third parties and may not be available to us in the future, which may delay product development and production or cause us to incur additional expense.
  • Certain software we use is from open source code sources, which, under certain circumstances could materially adversely affect our business, financial condition, operating results and cash flow.
  • We are subject to warranty claims, product recalls and product liability.
  • The complexity of our products could result in unforeseen delays or expense or undetected defects or bugs, which could adversely affect the market acceptance of new products, damage our reputation with current or prospective customers, and materially and adversely affect our operating costs.
  • We make substantial investments in research and development to enhance existing and develop new technologies to keep pace with technological advances and to remain competitive in our business, and unsuccessful investments could materially adversely affect our business, financial condition and results of operations.
  • We collect, use, store, or otherwise process personal information, which subjects us to privacy and data security laws and contractual commitments, and our actual or perceived failure to comply with such laws and commitments could harm our business.
  • Social and environmental responsibility regulations, policies and provisions, as well as customer demand, may make our supply chain more complex and may adversely affect our relationships with customers.
  • A breach of our security systems may have a material adverse effect on our business.
  • Current and future accounting pronouncements and other financial reporting standards, especially concerning revenue recognition, may negatively impact our financial results.
  • Fluctuations in foreign exchange rates could result in losses.
  • The enactment of legislation implementing changes in taxation of international business activities, the adoption of other corporate tax reform policies, or changes in tax legislation or policies could materially impact our financial position and results of operations.
  • Our provision for income taxes and overall cash tax costs are affected by a number of factors, including reorganizations or restructurings of our businesses or assets, jurisdictional revenue mix and changes in tax regulations or policy, and may be further impacted by corporate transactions, all of which could materially, adversely affect financial results.
  • The Internal Revenue Service may not agree that prior to our redomiciliation into the U.S., our predecessor, Broadcom Limited should have been treated as a foreign corporation for U.S. federal income tax purposes.
  • Our substantial indebtedness could adversely affect our financial health and our ability to raise additional capital to fund our operations or potential acquisitions, could limit our ability to react to changes in the economy or our industry, and exposes us to interest rate risk to the extent of our variable rate indebtedness and prevent us from fulfilling our obligations under our indebtedness.
  • The instruments governing our indebtedness impose certain restrictions on our business.
  • Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business to pay our substantial debt.
  • A substantial amount of our stock is held by a small number of large investors and significant sales of our common stock in the public market by one or more of these holders could cause our stock price to fall.
  • There can be no assurance that we will continue to declare cash dividends.
  • Our actual operating results may differ significantly from our guidance.
Management Discussion
  • Historically, a relatively small number of customers have accounted for a significant portion of our net revenue. No customer accounted for 10% or more of our net revenue for the fiscal quarter ended August 2, 2020. Direct sales to WT Microelectronics, a distributor, accounted for 12% of our net revenue for the three fiscal quarters ended August 2, 2020, and 16% and 15% of our net revenue for the fiscal quarter and three fiscal quarters ended August 4, 2019, respectively.
  • We believe aggregate sales to our top five end customers, through all channels, accounted for approximately 25% and 30% of our net revenue for the fiscal quarter and three fiscal quarters ended August 2, 2020, respectively, and approximately 35% of our net revenue for each of the fiscal quarter and three fiscal quarters ended August 4, 2019. We believe aggregate sales to Apple Inc., through all channels, accounted for approximately 10% and 15% of our net revenue for the fiscal quarter and three fiscal quarters ended August 2, 2020, respectively, and approximately 20% of our net revenue for each of the fiscal quarter and three fiscal quarters ended August 4, 2019. We expect to continue to experience significant customer concentration in future periods. The loss of, or significant decrease in demand from, any of our top five end customers could have a material adverse effect on our business, results of operations and financial condition.
  • From time to time, some of our key semiconductor customers place large orders or delay orders, causing our quarterly net revenue to fluctuate significantly. This is particularly true of our wireless products as fluctuations may be magnified by the timing of launches, and seasonal variations in sales, of mobile handsets. In addition, the ongoing COVID-19 pandemic and related challenges and uncertainties may also cause our net revenue to fluctuate significantly and adversely affect our results of operations, as discussed above.
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