News Article
Avago's Q3 FY 2010 Revenues Increase by 52% over Same Quarter Last Year
Revenues for the quarter were $550 million and the cash balance at the end of the third quarter was $367 million, compared to $256 million at the end of the prior quarter. The increase in cash over the quarter is primarily due to $137 million of cash generated from operations.
Avago Technologies, a global supplier of a broad range of analog semiconductor devices with a focus on III-V based products, has reported financial results for Q3 FY 2010, ended August 1, 2010.
The firm has also provided guidance for the fourth quarter fiscal year 2010.
GAAP net revenue was $550 million, an increase of 7 % compared with the previous quarter, and up 52 % from the same quarter last year.
GAAP gross margin was $263 million, or 47.8 % of net revenue. This compares with gross margin of $141 million, or 38.8 % of net revenue in the same quarter last year.
Operating expenses were $128 million. This compares with $125 million in the prior quarter and $117 million in the same quarter the previous year.
Third quarter net income was $123 million, or $0.50 per diluted share. This compares with net income of $90 million, or $0.37 per diluted share last quarter, and net income of $2 million, or $0.01 per diluted share in the same quarter last year.
The Company’s cash balance at the end of the third quarter was $367 million, compared to $256 million at the end of the prior quarter. The increase in cash over the quarter is primarily due to $137 million of cash generated from operations.
Net income was $152 million, or $0.61 per diluted share. This compares with net income of $117 million, or $0.47 per diluted share last quarter, and net income of $40 million, or $0.18 per diluted share in the same quarter last year.
Adjusted EBITDA, as defined in the indenture governing the Company’s outstanding debt securities, was $184 million, compared with $154 million last quarter and $87 million in the same quarter last year.
“Our business reached a historic milestone in the third quarter of fiscal 2010. In addition to another record net revenue quarter, Avago’s non-GAAP Gross Margin surpassed 50% as we continued to execute well on our strategy of expanding gross margins,” said Hock Tan, President and CEO of Avago. “Our business remains robust and our proprietary products continue to gain momentum as we win more programs at major OEMs.”
Based on current business trends, the outlook for the fourth fiscal quarter of 2010, ending October 31, 2010, is expected to be as follows:
Reconciling items include $14 million of amortization of acquisition-related intangibles and $1 million of share-based compensation expenses at the Gross Margin line and $5 million of amortization of acquisition-related intangibles, $7 million of share-based compensation and $1 million of restructuring expenses at the Operating Expenses line.
Capital expenditures are expected to increase in the fourth quarter and be in the range of $25 million to $30 million. Depreciation is expected to be $20 million and amortization is expected to be $19 million in the fourth quarter.
Avago will be presenting at the Citi Technology Conference in New York on September 8, 2010 and at the Deutsche Bank Technology Conference in San Francisco on September 14, 2010. The company will also be hosting an analyst event in Santa Clara on the afternoon of September 16, 2010. These presentations will be webcast and available for replay on the Investors section of Avago’s website at www.avagotech.com.
Avago hosted a conference call to review its financial results for the third quarter fiscal year 2010, and to provide guidance for the fourth quarter of fiscal year 2010,
A replay of the call will be available through August 31, 2010. To access the replay users may dial: 888-286-8010; (U.S.)
617-801-6888 (International)
and use reference the passcode: 40275389.
A webcast of the conference call will be available in the Investors section of Avago’s website at www.avagotech.com.
Avago Technologies is a designer, developer and global supplier of a broad range of analog semiconductor devices with a focus on III-V based products. Its four primary target markets are wireless communications, wired infrastructure, industrial and automotive electronics and consumer and computing peripherals.
