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Broadcom Inc. (AVGO-2.33%) has submitted its Form 10-Q filing for the quarterly period ended February 2, 2025.
The filing details Broadcom's financial performance, reporting a total net revenue of $14,916 million for the quarter, an increase from $11,961 million in the same quarter the previous year. The revenue growth is attributed to strong demand for networking products, particularly AI networking solutions, and increased infrastructure software sales.
Gross margin for the quarter was $10,145 million, up from $7,375 million in the prior year, driven by higher software revenue and strong product demand. Operating income rose to $6,260 million from $2,083 million in the previous year.
Broadcom's semiconductor solutions segment contributed $8,212 million to net revenue, while the infrastructure software segment contributed $6,704 million. The increase in software revenue was primarily due to demand for VMware Cloud Foundation and the transition to a subscription license model.
Research and development expenses decreased slightly to $2,253 million, while selling, general, and administrative expenses fell to $949 million, reflecting lower compensation costs and reduced headcount.
Net income for the quarter was $5,503 million, a significant increase from $1,325 million in the previous year. The company also reported cash provided by operating activities of $6,113 million.
Broadcom issued $4.0 billion of commercial paper and $3.0 billion of senior unsecured notes, using the proceeds to repay $7,595 million of unsecured term loans. As of February 2, 2025, Broadcom had $9,307 million in cash and cash equivalents.
The company declared a quarterly cash dividend of $0.59 per share, amounting to $2,774 million in dividends paid during the quarter.
The report also outlines various risks, including dependence on a small number of customers, competition, and regulatory challenges, which could impact future performance.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Broadcom Inc. quarterly 10-Q report dated March 12, 2025. To report an error, please email earnings@qz.com.