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Broadcom (AVGO)

Broadcom Inc., a Delaware corporation headquartered in San Jose, CA, is a global technology leader that designs, develops and supplies a broad range of semiconductor and infrastructure software solutions. Broadcom's category-leading product portfolio serves critical markets including data center, networking, enterprise software, broadband, wireless, storage and industrial. Broadcom Inc solutions include data center networking and storage, enterprise, mainframe and cyber security software focused on automation, monitoring and security, smartphone components, telecoms and factory automation.

Company profile

Ticker
AVGO, AVGOP
Exchange
CEO
Hock Tan
Employees
Incorporated
Location
Fiscal year end
Former names
Broadcom Ltd
SEC CIK
Subsidiaries
Avago Technologies International Sales Pte. Limited • Avago Technologies U.S. Inc. • Avago Technologies Wireless (U.S.A.) Manufacturing LLC • Broadcom Corporation • Broadcom Singapore Pte. Ltd. • CA, Inc. • CA Europe • LSI Corporation ...

AVGO stock data

Calendar

9 Jun 22
12 Aug 22
30 Oct 22
Quarter (USD) May 22 Jan 22 Oct 21 Aug 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Oct 21 Oct 20 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
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 9.01B 9.01B 9.01B 9.01B 9.01B 9.01B
Cash burn (monthly) 404.67M 42.75M (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 1.38B 146M n/a n/a n/a n/a
Cash remaining 7.62B 8.86B n/a n/a n/a n/a
Runway (months of cash) 18.8 207.2 n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
5 Apr 22 Bryant Diane M Common Stock, $0.001 par value Sell Dispose S No Yes 629.55 476 299.67K 1,560
4 Apr 22 Bryant Diane M Common Stock, $0.001 par value Grant Acquire A No No 0 413 0 2,036
4 Apr 22 Gayla J Delly Common Stock, $0.001 par value Grant Acquire A No No 0 413 0 3,464
4 Apr 22 Fernandez Raul J Common Stock, $0.001 par value Grant Acquire A No No 0 413 0 3,123
4 Apr 22 Eddy W Hartenstein Common Stock, $0.001 par value Grant Acquire A No No 0 413 0 889
4 Apr 22 Low Check Kian Common Stock, $0.001 par value Payment of exercise Dispose F No No 634.85 18 11.43K 4,583
4 Apr 22 Low Check Kian Common Stock, $0.001 par value Grant Acquire A No No 0 413 0 4,601
4 Jan 22 Eddy W Hartenstein Common Stock, $0.001 par value Gift Dispose G Yes No 0 655 0 12,909

Financial report summary

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Risks
  • Risks Related to Our Business
  • Risks Relating to Our Indebtedness
  • Risks Relating to Owning Our Common Stock
  • The ongoing COVID-19 pandemic continues to 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.
  • We operate in the highly cyclical semiconductor industry.
  • Global political and economic conditions and other factors related to our international operations could adversely affect our business, financial condition and results of operations.
  • Our business would be adversely affected by the departure of existing members of our senior management team.
  • The failure to complete our acquisition of VMware may adversely affect our business and our stock price.
  • Failure to realize the benefits expected from the VMware Merger could adversely affect the value of our common stock.
  • 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.
  • 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.
  • An impairment of the confidentiality, integrity, or availability of our IT systems, or those of one or more of our corporate infrastructure vendors could have a material adverse effect on our business.
  • 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.
  • 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.
  • Failure of our software products to manage and secure IT infrastructures and environments could have a material adverse effect on our business.
  • 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 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 and investor demands, may make our supply chain more complex and may adversely affect our relationships with customers and investors.
  • Fluctuations in foreign exchange rates could result in losses.
  • Changes in tax legislation or policies could materially impact our financial position and results of operations.
  • Our income taxes and overall cash tax costs are affected by a number of factors that could materially, adversely affect financial results.
  • Our substantial indebtedness could adversely affect our financial health and our ability to execute our business strategy.
  • 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.
  • The amount and frequency of our stock repurchases may fluctuate.
  • A substantial amount of our stock is held by a small number of large investors and significant sales of our common stock 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.
Management Discussion
  • A relatively small number of customers account for a significant portion of our net revenue. Direct sales to WT Microelectronics Co., Ltd., a distributor, accounted for 17% and 20% of our net revenue for the fiscal quarter and two fiscal quarters ended May 1, 2022, respectively, and 17% and 18% of our net revenue for the fiscal quarter and two fiscal quarters ended May 2, 2021, respectively.
  • We believe aggregate sales to our top five end customers, through all channels, accounted for approximately 35% of our net revenue for each of the fiscal quarter and two fiscal quarters ended May 1, 2022 and May 2, 2021. We believe aggregate sales to Apple Inc., through all channels, accounted for approximately 20% of our net revenue for each of the fiscal quarter and two fiscal quarters ended May 1, 2022 and May 2, 2021. 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. The ongoing COVID-19 pandemic and related uncertainties and supply imbalance have caused and may continue to cause our net revenue to fluctuate significantly and impact our results of operations, as discussed above.

Content analysis

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Positive
Negative
Uncertain
Constraining
Legalese
Litigous
Readability
H.S. freshman Good
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