Avago Q1 results 131 percent up on Q1 2014
Avago Technologies, a semiconductor device supplier with a focus on III-V based products and complex digital and mixed signal CMOS based devices, today reported financial results for the first quarter of its fiscal year 2015, ended February 1, 2015, and provided guidance for the second quarter of its fiscal year 2015.
Q1 2015 GAAP results showed a net revenue of $1,635 million, an increase of 3 percent from $1,590 million in the previous quarter and an increase of 131 percent from $709 million in the same quarter last year. Gross margin was $826 million, or 51 percent of net revenue. This compares with gross margin of $788 million, or 50 percent of net revenue last quarter, and gross margin of $339 million, or 48 percent of net revenue in the same quarter last year.
Avago's financial results include results from LSI Corporation starting the third fiscal quarter of 2014, and from PLX Technology Inc starting in the fourth fiscal quarter of 2014, in each case from the date of their acquisition. The financial results from LSI's flash and Axxia businesses, which were recently sold, have been classified as discontinued operations in the company's financial statements and the results of operations from these businesses are not included in the results presented below, unless otherwise stated.
"We had a strong start to our fiscal year with better than expected 3 percent sequential revenue growth in the first quarter, driven by our wireless revenues, which grew by 90 percent from the same quarter last year." said Hock Tan, president and CEO of Avago Technologies Limited. "And we continued to deliver very strong financial results with greater than 40 percent operating margins and $2.09 in EPS."
Operating expenses were $425 million. This compares with $487 million in the prior quarter and $200 million for the same quarter last year. Operating income was $401 million, or 25 percent of net revenue. This compares with operating income of $301 million, or 19 percent of net revenue, in the prior quarter, and $139 million, or 20 percent of net revenue, in the same quarter last year.
Net income, which includes the impact of discontinued operations, was $351 million, or $1.26 per diluted share. This compares with net income of $135 million, or $0.50 per diluted share, for the prior quarter, and net income of $134 million, or $0.53 per diluted share in the same quarter last year.
The company's cash balance at the end of the first fiscal quarter was $2.6 billion, compared to $1.6 billion at the end of the prior quarter. The company generated $481 million in cash from operations and spent $162 million on capital expenditures in the first fiscal quarter of 2015.
On December 31, 2014, the company paid a quarterly cash dividend of $0.35 per ordinary share, totaling approximately $89 million.
For Q1 2015 Non-GAAP results from continuing operations, net revenue from continuing operations was $1,657 million, an increase of 3 percent from $1,610 million in the previous quarter, and an increase of 134 percent from $709 million, in the same quarter last year.
Gross margin from continuing operations was $974 million, or 59 percent of net revenue. This compares with gross margin of $939 million, or 58 percent of net revenue last quarter, and gross margin of $366 million, or 52 percent of net revenue, in the same quarter last year.
Operating income from continuing operations was $681 million, or 41 percent of net revenue. This compares with operating income from continuing operations of $636 million, or 40 percent of net revenue, in the prior quarter, and $224 million, or 32 percent of net revenue, in the same quarter last year.
Net income from continuing operations was $596 million, or $2.09 per diluted share. This compares with net income of $556 million, or $1.99 per diluted share last quarter, and net income of $217 million, or $0.84 per diluted share, in the same quarter last year.
Second Quarter Fiscal Year 2015 Business Outlook
Based on current business trends and conditions, the outlook for continuing operations for the second quarter of fiscal year 2015, ending May 3, 2015, is expected to be as shown in the table above.
