Upcoming AWS Coverage on MACOM Technology Solutions Holdings Post-Earnings Results

LONDON, UK / ACCESSWIRE / December 16, 2016 / Active Wall St. announces its post-earnings coverage on Broadcom Ltd (NASDAQ: AVGO). The Company reported its fourth quarter and fiscal 2016 earnings results on December 08, 2016. The semiconductor Company posted better-than-expected sales and earnings results. Additionally, Broadcom's board declared an interim dividend. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of Broadcom's competitors within the Semiconductor - Broad Line space, MACOM Technology Solutions Holdings, Inc. (NASDAQ: MTSI), reported on November 15, 2016, its financial results for its fiscal fourth quarter and fiscal year ended September 30, 2016. AWS will be initiating a research report on MACOM Technology Solutions in the coming days.

Today, AWS is promoting its earnings coverage on AVGO; touching on MTSI. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=AVGO

http://www.activewallst.com/registration-3/?symbol=MTSI

Earnings Reviewed

For the quarter ended on October 30 2016, Broadcom reported net revenue of $4.14 billion, an increase of 125%, from $1.84 billion in Q4 FY15. The company's revenue numbers were at the top end of its guidance, primarily due to better seasonality from wireless and enterprise storage segments. The company's revenue figures surpassed analysts' expectations of revenue of $4.13 billion.

The company's gross margin for the reported quarter was $2.17 billion, or 52.5% of net revenue, compared to gross margin of $997 million, or 54.2% of net revenue, in the same quarter last year. Broadcom posted operating income of $381 million, or 9% of net revenue for the reported quarter, compared to operating income of $514 million, or 28% of net revenue, in the year earlier quarter.

Broadcom reported a net loss of $668 million, or $1.59 per share, for Q4 FY16 from a net income of $429 million, or $1.49 per share, in Q4 FY15. However, on an adjusted basis, the company reported earnings of $3.47 per share. Analysts were forecasting earnings of $3.38 per share.

In February 2016, Avago Technologies Ltd completed the acquisition of rival Broadcom Corp. for approximately $37 billion; the combined entity retained the Broadcom name and AVGO ticker symbol.

Segment Results

During Q4 FY16, revenue from Wired, Broadcom's largest segment, came in at $2.08 billion, representing 50% of the company's total revenue. Revenue for this segment during the reported quarter was up slightly on a sequential basis. In Q4 FY16, Broadcom's wireless revenue came in at about $1.35 billion and represented 32% of total revenue. Revenue for this segment was up 34% sequentially, a bit stronger than expectations. Growth was primarily driven by the full ramp of the new phone generation and the Company's North American Smartphone customers.

For Q4 FY16, Broadcom generated revenue of $561 million from its enterprise storage segment, which was 14% of its total revenue. The segment's revenue grew 6% sequentially and was better than expectation. The company benefited from the strengthening demand from both for its HDD hard disc drive and rate (whole box) adaptive products. In Q4 FY16, Broadcom's Industrial segment's revenue came in at $162 million, down 20% sequentially. This segment's revenue represented 4% of the company's total revenue.

FY16 Financial Results from Continuing Operations

For FY16, Broadcom's net revenue from continuing operations was $13.24 billion, an increase of 94% from $6.82 billion in the prior year. The Company's gross margin was $5.94 billion, or 44.9% of net revenue, versus $3.55 billion, or 52.1% of net revenue, in FY15. Operating loss was $409 million compared to operating income of $1.63 billion in the prior year. The company's net loss, which includes the impact from discontinued operations, was $1.86 billion, or $4.86 per diluted share, compared to net income of $1.36 billion, or $4.85 per diluted share, in FY15.

Liquidity and Capital Resources

As of October 30, 2016, Broadcom's cash balance was $3.10 billion compared to $1.96 billion at the end of the prior's quarter. During Q4 FY16, the Company generated $1.35 million in cash from operations and received $200 million in net cash proceeds from the completion of divestitures. In the reported quarter, the Company spent $193 million on capital expenditures. On September 30, 2016, the Company paid a cash dividend of $0.51 per ordinary share, totaling $202 million. On the same date, the Partnership, of which the Company is the General Partner, paid holders of REUs a corresponding distribution of $0.51 per REU, totaling $11 million.

Interim Dividend

Broadcom announced that its Board of Directors has approved a quarterly, interim cash dividend of $1.02 per ordinary share. A corresponding distribution will also be paid by the Partnership, of which the Company is the General Partner, to holders of REUs, in the amount of $1.02 per REU. The dividend and the distribution are both payable on December 30, 2016, to shareholders or unit-holders of record, as applicable, at the close of business Eastern Time on December 16, 2016.

Outlook

For Q1 FY17, Broadcom is projecting to generate net revenue of about $4.075 billion, plus or minus $75 million. Analysts expected adjusted revenue of $3.96 billion. The company expects gross margin of approximately 47%.

Stock Performance

On Thursday, December 15, 2016, the stock closed the trading session at $180.01, climbing 1.35% from its previous closing price of $177.62. A total volume of 3.81 million shares have exchanged hands, which was higher than the 3-month average volume of 2.77 million shares. Broadcom's stock price advanced 8.76% in the last month, 5.72% in the past three months, and 16.40% in the previous six months. Furthermore, since the start of the year, shares of the company have surged 25.91%. The stock has a dividend yield of 1.13% and currently has a market cap of $68.18 billion.

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SOURCE: Active Wall Street