Infrastructure Leads
At $5.52 billion, revenues were higher by 9% from the prior-year quarter but slightly below Wall Street’s consensus forecast. Infrastructure solutions revenue more than doubled to $1.14 billion, while semiconductor solutions revenue dropped 5% to $4.35 billion.
“Our broad portfolio of mission critical semiconductor and infrastructure software solutions, utilized by the world’s largest enterprises, continued to drive sustained revenues and robust cash flow despite a challenging market backdrop,” said CEO Hock Tan.
Outlook
Meanwhile, the management reaffirmed its full-year 2019 revenue guidance at $22.5 billion, which is expected to generate operating margins of 14.75%. The outlook includes revenues of $17.5 billion from semiconductor solutions and $5 billion from infrastructure software.
During the quarter, the company repurchased 3.5 million shares for $977 million and approved a dividend of $2.65 per share, to be paid on October 1 to stockholders of record on September 23.
Symantec Deal
Last month, Broadcom acquired the struggling enterprise security business of cybersecurity expert Symantec (SYMC)for about $11 billion. The management expects cost synergies of about $1 billion from the combination a year after the completion of the transaction.
Also see: Broadcom Q2 2019 Earnings Conference Call Transcript
After retreating from the recent peak, Broadcom shares witnessed significant volatility in the last few months. The stock, which gained about 16% since the beginning of the year, dropped 2% during Thursday’s after-hours trading session.