Broadcom, a global technology leader, has reported its financial performance for the fiscal year ended November 3, 2024, in its latest 10-K filing. The company's fiscal year 2024 was a 53-week fiscal year compared to the previous year, which was a 52-week fiscal year. This additional week resulted in higher net revenue, gross margin dollars, research and development expense, and selling general and administrative expense for fiscal year 2024 compared to the previous year.
Key highlights from fiscal year 2024 include: Completion of the acquisition of VMware, Inc. for approximately $30.8 billion in cash and 544 million shares of Broadcom common stock with a fair value of $53.4 billion. Generation of $19,962 million in cash from operations. Payment of $9,814 million in cash dividends. Repurchase of $7,176 million of common stock. * Completion of a ten-for-one forward stock split of Broadcom's common stock.
Acquisitions and divestitures: Acquisition of VMware in a cash-and-stock transaction. Sale of VMware's end-user computing business to KKR & Co. Inc. for cash consideration of $3.5 billion. * Acquisition of certain assets related to the design, development, and manufacture of System-on-Chip (SoC) operations of Seagate Technology Holdings plc for $600 million.
Revenue: A majority of Broadcom's net revenue is derived from sales of semiconductor devices and software solutions. Fluctuations in end-market demand, including seasonality, have resulted in variations in the company's overall net revenue and the percentage of total net revenue generated by sales in its semiconductor solutions and infrastructure software segments.
Costs and expenses: Cost of products sold primarily consists of costs for semiconductor wafers and other materials, as well as the costs of assembling and testing those products and materials. Research and development expense includes personnel costs for engineers engaged in the design and development of products and technologies. * Selling, general and administrative expenses consist of compensation and associated costs for sales and marketing personnel, executive management, finance, human resources, and other administrative personnel.
Other financial details: Interest expense includes coupon interest, commitment fees, accretion of original issue discount, amortization of debt premiums and debt issuance costs, and expenses related to debt modifications or extinguishments. Provision for income taxes includes tax incentives extended to Broadcom in various jurisdictions to encourage investment or employment.
Broadcom's financial performance for fiscal year 2024 reflects its strategic focus on technology leadership and category-leading semiconductor and infrastructure software solutions, driven by acquisitions, internal research and development, and a robust business model designed to deliver diversified and sustainable operating and financial results. Following these announcements, the company's shares moved 1.1%, and are now trading at a price of $220.79. If you want to know more, read the company's complete 10-K report here.
