Broadcom said it acquired VMware on November 22, 2023 in a cash-and-stock transaction. VMware shareholders received about $30,788 million in cash and 54.4 million shares of Broadcom common stock with a fair value of $53,398 million.

10-QQuarterly reportFiled Jun 13, 2024Period of report May 5, 2024Summary published (UTC) Oct 24, 2026

Key points

AI summary

Broadcom said it acquired VMware on November 22, 2023 in a cash-and-stock transaction. VMware shareholders received about $30,788 million in cash and 54.4 million shares of Broadcom common stock with a fair value of $53,398 million.
Broadcom said gross margin for the fiscal quarter ended May 5, 2024 rose to $7,776 million from $6,115 million a year earlier, and gross margin as a percentage of net revenue was 62%, compared with 70% a year earlier. The company cited higher amortization of acquisition-related intangible assets from the VMware Merger as the reason the margin declined.
The company said cash and cash equivalents fell over the 2 fiscal quarters ended May 5, 2024, driven by $32,058 million paid for the VMware Merger, $7,176 million of stock repurchases, $4,878 million of dividend payments and $2,662 million of employee withholding tax payments. Net borrowing proceeds of $27,076 million and net cash from operating activities of $9,395 million partly offset the decline.
Broadcom said it had $9,809 million in cash and cash equivalents as of May 5, 2024, along with available capacity under its $7.5 billion unsecured revolving credit facility, and outstanding debt of $76,521 million. The company also said it made a partial repayment of $2.0 billion on its 2023 Term Loans during the fiscal quarter.

Key figures

Quarter ended May 5, 2024

Revenue: $12.5B
Operating income: $3.0B
Net income: $2.1B
EPS: $4.42
Gross profit: $7.8B

From the XBRL financial data filed with the SEC · not processed by AI.

Summary

AI-written

Analysis scope · Management's discussion (MD&A)We analyzed the Management's Discussion and Analysis (MD&A) section. Other sections of the report, such as the notes to the financial statements and risk factors, were not reviewed.

VMware acquisition consideration and closing date

Broadcom said it acquired VMware on November 22, 2023 in a cash-and-stock transaction. VMware shareholders received about $30,788 million in cash and 54.4 million shares of Broadcom common stock with a fair value of $53,398 million.

Source · Based on the MD&A text of the filing

Quarterly gross margin and gross margin rate change

Broadcom said gross margin for the fiscal quarter ended May 5, 2024 rose to $7,776 million from $6,115 million a year earlier, and gross margin as a percentage of net revenue was 62%, compared with 70% a year earlier. The company cited higher amortization of acquisition-related intangible assets from the VMware Merger as the reason the margin declined.

Source · Based on the MD&A text of the filing

Cash uses over the 6-month period

The company said cash and cash equivalents fell over the 2 fiscal quarters ended May 5, 2024, driven by $32,058 million paid for the VMware Merger, $7,176 million of stock repurchases, $4,878 million of dividend payments and $2,662 million of employee withholding tax payments. Net borrowing proceeds of $27,076 million and net cash from operating activities of $9,395 million partly offset the decline.

Source · Based on the MD&A text of the filing

Liquidity and debt balances as of date

Broadcom said it had $9,809 million in cash and cash equivalents as of May 5, 2024, along with available capacity under its $7.5 billion unsecured revolving credit facility, and outstanding debt of $76,521 million. The company also said it made a partial repayment of $2.0 billion on its 2023 Term Loans during the fiscal quarter.

Source · Based on the MD&A text of the filing

AI summarized the filing and translated the summary into English; it may differ from the original. For reference only, not investment advice. AI translated the published Korean report into English. Figures are copied as filed, not recalculated.

Original filing

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