Broadcom published its first quarter financial results on Thursday, beating earnings expectations but falling short on revenue. CEO Hock Tan noted in a statement that Broadcom benefited from strong results in its networking business, despite an anticipated sharp decline in wireless.
The semiconductor device supplier posted non-GAAP earnings of $5.55 per share on revenue of $5.79 billion, up 9 percent year-over-year.
Analysts were expecting earnings of $5.23 per share on revenue of $5.82 billion.
"We had a good start to 2019 as we continued to execute on our proven business model," Tan said in a statement. "Strong results in our networking business supported our semiconductor solutions segment, despite the anticipated sharp decline in wireless. Additionally, our infrastructure software segment performed extremely well as we made good progress with the CA business integration into Broadcom.
Like others in the industry, Broadcom is seeing a slowdown in China impacting demand, Tan said. The company is maintaining its full fiscal year 2019 revenue outlook of $24.5 billion in spite of the slowdown.
Broadcom generated over $2 billion in free cash flow in the quarter, which represented 39 percent growth on a year-over-year basis.
Additionally, the company announced its Board of Directors has approved a quarterly cash dividend of $2.65 per share.