Broadcom reported Thursday it saw no material impact on its businesses due to COVID-19 in its first fiscal quarter that ended Feb. 1. However, the company said it would not provide annual guidance for now as “demand uncertainty is intensifying.”
“It certainly was the best of times, and now it’s the worst of times,” Tan said on a call with investors, after U.S. markets closed with their greatest percentage drop since 1987 amid continuing virus panic.
He also said Broadcom will continue to invest in its wireless assets after some market speculation emerged otherwise in late 2019. With multi-year supply agreements in place, “we look forward to continued success from wireless,” he said.
The company generated revenues of $5.9 billion in the quarter, up 1% from the same quarter a year earlier. Semiconductor sales were 72% of that total, reaching $4.2 billion, a 4% decline from the prior year. Infrastructure software was the remainder at $1.7 billion, an increase of 19%. Net income was $385 million.
Like many other stocks battered by coronavirus and the impact on the supply chain, Broadcom’s stock closed down 11% on Thursday at $218.78.
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Even as Broadcom did not offer guidance for the full year, Tan said second quarter revenues should reach $5.7 billion with semiconductors flat from a year ago. “Shipments today give us confidence,” Tan said.