Broadcom Q4 tops estimates as software cushions semiconductor lull

Broadcom maintains that the semiconductor market has bottomed, but for now its infrastructure software business is cushioning the blow.

Broadcom reported better-than-expected fourth quarter results as its infrastructure software business, acquired via the CA Technologies purchase, offset its semiconductor business.

The company reported fourth quarter net income of $847 million, or $1.97 a share, on revenue of $5.78 billion, up 6% from a year ago. Non-GAAP earnings in the quarter were $5.39 a share.

For the fourth quarter, Broadcom was expected to report non-GAAP earnings of $5.35 a share on revenue of $5.73 billion.

By unit, Broadcom's semiconductor business represented 79% of total sales in the fourth quarter.

Broadcom said it is expecting fiscal 2020 revenue of $25 billion, give or take $500 million. That outlook includes results from Symantec's enterprise security unit.

In a statement, Broadcom CEO Hock Tan said that the year ended about as expected. He added that the semiconductor business is bottoming and should return to year over year growth in the second half of 2020.

For fiscal 2019, Broadcom reported revenue of $22.6 billion, up 8 percent from the previous year, with net income of $2.69 billion.

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