-- Revenue of $5,517 million for the quarter, up 10 percent from the prior year period

SAN JOSE, Calif., June 13, 2019 — (PRNewswire) —  Broadcom Inc. (Nasdaq: AVGO), a global technology leader that designs, develops and supplies semiconductor and infrastructure software solutions, today reported financial results for its second quarter of fiscal year 2019, ended May 5, 2019, announced a quarterly dividend and updated guidance for its fiscal year 2019.

"We executed according to plan in the second quarter with tailwinds from networking offsetting the anticipated headwinds from wireless," said Hock Tan, President and CEO of Broadcom Inc. "We currently see a broad-based slowdown in the demand environment, which we believe is driven by continued geopolitical uncertainties, as well as the effects of export restrictions on one of our largest customers. As a result, our customers are actively reducing their inventory levels, and we are taking a conservative stance for the rest of the year. We remain well-positioned across our various semiconductor and software businesses and are confident this portfolio of franchises will continue to drive sustained long-term revenue growth and increasing free cash flow."

"We achieved record free cash flow of $2.5 billion growing 20% year over year in the second quarter," said Tom Krause, CFO of Broadcom Inc. "Despite the challenging market backdrop and updated revenue outlook, we still expect to grow free cash flow by a double-digit percentage for the year. In addition, we remain focused on completing a total of $8 billion of share repurchases and eliminations in fiscal 2019."

Second Quarter Fiscal Year 2019 GAAP Results from Continuing Operations

Net revenue was $5,517 million, a decrease of 4.7 percent from $5,789 million in the previous quarter and an increase of 10.0 percent from $5,014 million in the same quarter last year.

Gross margin was $3,089 million, or 56.0 percent of net revenue. This compares with gross margin of $3,208 million, or 55.4 percent of net revenue, in the prior quarter, and gross margin of $2,551 million, or 50.9 percent of net revenue, in the same quarter last year.

Operating expenses were $2,119 million. This compares with $2,653 million in the prior quarter and $1,350 million in the same quarter last year.

Operating income was $970 million, or 17.6 percent of net revenue. This compares with operating income of $555 million, or 9.6 percent of net revenue, in the prior quarter, and operating income of $1,201 million, or 24.0 percent of net revenue, in the same quarter last year.

Net income, which includes the impact of discontinued operations, was $691 million, or $1.64 per diluted share. This compares with net income of $471 million, or $1.12 per diluted share, in the prior quarter, and net income of $3,733 million, or $8.33 per diluted share, in the same quarter last year.

Cash from operations was $2,667 million in the quarter, compared to $2,313 million in the same quarter last year.