Business Segment Performance of Broadcom in 2Q15
Highlights of Broadcom Corp’s 2Q15 Results
Broadband and connectivity
In 2Q15, the “Broadband and Connectivity” segment of Broadcom (BRCM) generated revenues of $1.42 billion compared to $1.40 billion in 1Q15 and $1.30 billion in 2Q14. Operating income in 2Q15 for this segment was $268 million compared to $241 million in 1Q15 and $243 million in 2Q14. While operating margin was 18.8% in 2Q15 for this segment, the figures were $17.1% and 18.7% respectively for 1Q15 and 2Q14. Revenues improved 9.3% year over year (or YoY) driven by growth in set-top box and broadband modems.
Infrastructure and Networking
In 2Q15, the “Infrastructure and Networking” segment of Broadcom generated revenues of $669 million compared to $631 million in 1Q15 and $655 million in 2Q14. Operating income in 2Q15 for this segment was $194 million compared to $167 million in 1Q15 and $206 million in 2Q14. While operating margin was 29% in 2Q15 for this segment, the figures were $26.5% and 31.5% respectively for 1Q15 and 2Q14. Revenues increased 2.1% YoY driven by higher demand for products in the data center and enterprise markets.
Revenues for competitors like Intel (INTC) and Qualcomm (QCOM) declined 14.31% and 4.51%, respectively in 2Q15.
Cash flow from operations
Net cash from operation in 2Q15 was $802 million compared to $225 million in 2Q14.Cash and cash equivalents were $1.976 billion at the end of 2Q15 with long-term debt of $1.594 billion. Broadcom paid $84 million in dividends and repurchased shares worth $128 million in 2Q15.
Broadcom accounts for 0.76% of the Technology Select Sector SPDR ETF (XLK) and 5.07% of the Market Vectors Semiconductor ETF (SMH).
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