AVGO - Earnings call transcript Q1 2020

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Operator

Welcome to Broadcom Inc.'s First Quarter Fiscal Year 2020 Financial Results Conference call.

At this time, for opening remarks and introductions, I would like to turn the call over to Beatrice Russotto, Director of Investor Relations of Broadcom Inc. Please go ahead, ma'am.

Beatrice Russotto

Thank you, operator, and thanks everyone for dialing in today.

Joining me on today’s call are Hock Tan, President and CEO; and Tom Krause, Chief Financial Officer of Broadcom.

Broadcom financial press quarter performance year closed, tables and of market XXXX. our describing for the distributed release a financial fiscal After the first

information copy, did at website may receive you Investors a If obtain of not broadcom.com. the from Broadcom's the section you

is live our in archived conference via section recording of available at and the will broadcom.com. be call This playback will for also a be website telephone one being webcast week. It Investors

providing the SEC information year details specific comments, Please could our call. year factors business Hock and statements commentary after the refer be cause for that of questions quarter for Tom During our the regarding take risk this on comments. forward-looking our the results from fiscal our today the to materially of will with XXXX our prepared first second to and made XXXX differ the guidance results, actual We'll end release quarter on environment. fiscal prepared filings press our recent and

addition Broadcom refer during financial non-GAAP GAAP release. is to made financial press in GAAP will between call the certain reporting, non-GAAP non-GAAP included and today's reports U.S. A reconciliation a tables basis. Comments on to attached measures our today's primarily In to results. measures

turn now call the I'll over Hock. to

Hock Tan

Bea times. interesting now worst very of the and joining today. we best is It live Well, everyone in you, thank Thank for the times you, times. it certainly of was certainly and

ago. increase was So first and X% the current net environment first revenue billion, from Consolidated I a let results, on $X.X me update by an will start reviewing our quarter provide which quarter outlook. year after for

products demand year-over-year. X% declining Semiconductor networking, and solutions growing X% collectively $X.X recover, broadband to but revenue for continue was our year-over-year billion, storage

an However, as down as we the expected, explained. products year-on-year change – sharply were touch to in architectural sensing due wireless

expected. performed software as infrastructure Our segment largely

$XXX million bottom year-over-year. well. record X% a under of very approximately growth the CA and revenue continued recovered quarter Brocade Broadcom, of a had delivering or from XXXX to stabilize

taking will into we of the step integrating Finally, first expect of this accounting, impact in approximately the quarter which revenue account our and $XXX we million, up as of platform progresses. year purchase Symantec onto had

Now first business, we Security to Accenture. which divesting are the exclude Services also Managed quarter this results

Now on to our current turn let full year. me the thinking

begin based prior how into on me year Let by context initially we to putting drivers. primary It guidance. came was two our XXXX full

to normalized CA the side, On infrastructure added on do good billion, which first and segment Symantec, software with which billion its combined run growing. in expect rate year is We XXXX. $X a in which to back we the the is felt Brocade, we $X.X way software from about

XXXX single-digits. was strong year in a Now up semiconductors, high

and we’re year. of softening demand down high second single-digits, became was industry-wide, However, the the in half XXXX out bottoming challenging

recovery XXXX guidance gave projected a we So quarter, our that when it bottom. last from reflected

We second expect XXXX, that been first XXXX. be have the of the in in half would seeing of half which then recovery accelerate more and the gradual we

spending by in XG in from year strong enterprise anticipated the expected of confidence was center late hyper phones acceleration and driven data that Our customers. and cloud the launch

of talk outlook. about COVID-XX impact So now let's the on that

intact. sit the I certainly business fundamentals and of not today, on impact yet very bookings remain As seen a I meaningful here much the have

in an year. However, half fiscal the second semiconductor there think but is no can't going business, a which is doubt our of particular help impact COVID-XX we the on in has high have level created uncertainty, to of

and continued But erode. frankly, to visibility is bad confidence

muted. Keep I our that prudent One believe we So likely until degree as more uncertainty, to time given visibility software contracts, multi-year any a much only on infrastructure it all cyclicality before move of point mind the recurring is withdraw is uncertainty that more around based guidance and such through levels. the result, returns to revenue in annual high be we on. revenue very pre-COVID-XX though

light unique thought to provide sense this we makes expectations, it more time the color visibility. have at Also in, of which we are we environment better in on near-term

revenue a in wireless second be typical $X.X quarter We slight expect drop drop, reflects which billion, sequential to seasonality. our

our Importantly, after this on a reduction QX year year-on-year last a flat the over be basis, quarters. virtually we to ago, semiconductor expect business from this overall year-on-year four

a on to infrastructure On expect we that completing to process. focus we the revenues, focus on as we Symantec software continue on sustain sequential as – integration basis

orders to to shipments to ability hand in So to the in this date put us give on it in our perspective, addition achieve confidence focus.

wireless last finally quarterly shareholders. press have business most our business, to me our careful Tom, call. assets especially in invest before operate the value will the let and the I conclusion our over in that come all consideration, the continuing After to call our given address create and speculation the to for So turn our wireless following for we

multi-year more strategically now and our continued our wireless look the success to recent largest customer closely We’re as supply of and agreements our franchises. aligned more smartphone a forward result of with

let me turn call Now over Tom. to the

Tom Krause

$X.X up quarter. This of revenue. XX% down up XX% X% segment was year-on-year $X.X quarter-over-quarter. billion, Consolidated and X% XX% year Hock. and you, quarter-over-quarter. increase is billion year-over-year billion first X% the for for Thank and Revenue ago. represented represented net the down infrastructure of This total our Semiconductor a a this from was solutions quarter and revenue revenue $X.X was revenue software XX% was

million EBITDA net billion of This net Operating Let year. Adjusted figure XX.X% go include that revenue. me excludes financial additional of of now performance. was $X.XX expenses of the million operations from were income our Symantec-related of provide represented over approximately $XXX the depreciation. to $X.XX and continuing expect $XX Operating course detail $X.XX and represented we away and billion was billion expenses XX.X% revenue. on

million or $XXX to revenue $XXX taxes the withholding I capital investing common elimination of due AVGO shares. would billion in our dividends. of $X.X returned stock we restructuring million holders, spent we also cash We note cash in billion $X.X on equity We quarter, million integration payments and the expenses resulting on free of $XXX XX.X% of In billion. million in including $X.XX and employment integration $XXX $X.X accrued that quarter. paid of cash represented million expenditures restructuring flow made of

Finally, with for of outstanding quarter. we debt, the quarter million shares billion XXX of billion fully total $X.X diluted shares million common XXX cash, ended the $XX.X and

Now let non-GAAP turn to me our guidance year second the fiscal for XXXX. of quarter

or approximately As with in net net by we slight expected be revenue of revenue plus billion expect a billion is XX% offset be Hock discussed, to revenue, $X.X drop operating Adjusted to $XXX or EBITDA expense. partially million. $X.XXX lower the minus

and cash we and scenarios service recessionary us to expect do, various with flow downside our liquidity, debt ability capital maintain to would outlook, run our you to return our As to respect our shareholders.

able current dividend gross variable we the our north to even the profile high margin a comfortable believe our our beyond in quite generate maintain throughout downside scenarios. excess these somewhat we EBITDA backdrop, are of with fiscal expense structure, With year. comfortably to as margins ability Given dividends XX% we and this are the and operating cash

result, to allocation preferred approximately plan $X We expect year debt. our capital cash and a to unchanged. and shareholders for out remains plan pay the As down dividend common billion in of $X.X to billion pay

year currently maintaining on liquidity high to debt down the the currently once the and visibility improve. plan pay second level uncertainty than to or starts focused of Given levels in normal of do higher are we today, the of half

remarks. prepared my concludes That

to question many Q&A so open accommodate can limit During analysts today's Operator, please portion call the please up as of one each we the yourselves questions. call, possible. as for

Operator

Morgan Thank Hettenbach Craig you. Instructions] will with first [Operator Stanley. question Our come from

Craig Hettenbach

further business, the on you. Hock, strategic of commentary around some a business. wireless add terms customer just the thank if in largest the question Yes, more and nature with alignment of your context you of your kind can

Hock Tan

release of to long-term much what that in would space. XG that components suffice limited disclose have we Well, three-year, generation us it road alignment close – to obviously it's the in you. next agreement technology say, our three the and we're It's a map phones. it years put agreement next how and with strong we – RF franchise customer we three that a pretty and essentially sign NDA, fact, in for I'm engagement, perpetuates I provide products in – very – in requires – that, aligns when this much under after to our so right basically, out and very in press But

Operator

Thank you.

from Seymore next with will Bank. Ross Deutsche come Our question

Ross Seymore

Hi, any supply really are that the I there Hock. Is the can you all, Thanks end for either at – changed clearly, uncertain. disruption very of high. all I levels haven't or you're you know know your times are but market said color on bookings kind geographic uncertainty color. versus it's give seeing? demand

of helpful. sort any be color So would

Hock Tan

we and not answer it's reflect infrastructure here as said could seen fact the of and I that all our opposed obviously base. we right. right hitting any consumer that to of the And trying disingenuous interesting question, about as be the or obviously enterprises how mean, – meaningful you're COVID-XX to businesses people, But we just pandemic know, related one the is you're individual, the but Well, significant you because as consumer. most to haven't impact. are sit this we very now

that So level it, see and we we that. recognize have buffer of before we

home from a see work as basically work that distancing home, fact that only they means which of and probably from lot behave which would part and people not more areas We increases. that recognize home. of other play in Internet also stay consumption They people, a differently some cloud more the we sense from social from areas home, of implies

see be pulled might even such. scaled spending, back, hyper improve probably to would I or So possibly not or cloud back

expect basically I least among push over might while over time, spending erode, might cloud goes all a enterprises other in spending up. delay notes, the my indicated confidence side, consumer On at basis, spending as as – or to which businesses, out drops we on as enterprises, level by temporary

puts this either because put this seen to speculation, want not and it either – again, thing be happen takes. as So have down yet. and there's we all scenarios all I But way

Operator

Thank you.

comes from question Vivek next America. with Bank Our Arya of

Vivek Arya

but half? flow half I than visibility to in can remarks, dividend Tom's, assume my payment Thanks back think, And and Tom, should right, Hock, if them second I got down. Because said I debt first when better $X billion taking pay limited, think, still be understand I billion in go we for the $X.X cash I question. is you the

flow last is that billion in billion had cash $X $X.X of for you outlined which higher the the think that's fiscal call free cash XX. than I So usage,

strong cash for definitely this year. So that flow generation suggests free

trying the those cash year, assumptions the you for and are points So free see sales data to this from a you. generation of flow have a perspective? Thank second half I'm and what at just look both

Hock Tan

we've indicated, I on we know. still don't the early know – what falls question. your we and that On because the answer supply easily, start – a as right, obviously. through let's to don't our But as this happened with look don't line, us chain. indicated, the bottom line process. then could in said, We scenarios. stage In we're so guidance, Asia, – in badly, I'm you second and with we as two Well, various because COVID-XX the very, trying full but show it even might China, that ecosystem far very whole Tom our very is, Problem possibilities, could. year, hit could is or demand and at for we seen come of And up. a We close draw to various impact from is big up as so frankly, not what suggesting top current show parts, to understand

because it chain there was was, supply partly What was impact, supply manufacturing in that in was of going. so China. the all much lot chain that Part inventory in supply we also pipeline saw but pre-COVID-XX, of a kept the contract not chain and not

any level. So our has meaningful to supply chain been impacted not

there slowdown. starts this On in since somewhat. side, There of as subside – was also as pandemic the level to in some demand China the recovery been has then China

U.S., we're don't we're the that, now, be going Europe know. glory. and we looking having honest, over China see in that full-blown seeing said into Now we extrapolate over its what Can we To at here?

the it, – to of at one we XX% our XX% right one X% and And could $XX – look we could say downside, so plan say, forecast. drop, revenues have want done you from possible billion you original to plenty – if

expense seeing percentage is EBITDA Tom as we're to still indicated, our variable OpEx, comfortably what of percentage, operating and EBITDA let levels, XX%. expect And Tom revenues we high-margin products extent, revenue Tom? a our our and I'll elaborate to over of be because some and bit more,

Tom Krause

add to on just And I'd to that.

some revenues think have it's look expected you're are traditionally. a uptick as at seasonally you the We a an scenarios work there's run back lot off There I would. drivers the would all if with down And the different quarter expect of be in generally up we if half. onetime QX right, also we to seasonally second associated as you'd that, of we a levels, that half. but baseline, in

off of $X.X cash levels you flow. number, mind, keep if depressed QX down in assume have to generate Even in mean going where the order we're I QX, of we're billion rates flattish Interest of free come on the dramatically.

a lot helping us. floating debt. have That's We of rate

variable helps articulating. us. a have We That compensation Hock here was as structure

environment. what you be if scenario, challenging worse, of so we because free the and the that do, And a don't specific were still to flow I out of to front order are could get And want get that of cash kind we especially we haven't on structure, going given to guided to amount paint things a number capital obviously continues have describing. just very to our those want generate we're think visibility you in

say, the amount to form headroom. $X.X needless including us gives preferred. billion dividends, in we're the of a It But of paying tremendous

if going only show any going we second I here at levels, ample it's expectation, half. to least today, debt it's that as we were but we alone especially and to on our we're at down to we in I would think running improvement as said, continue be of pay the prudent, let said sit liquidity the these continue to amount keep

improves, continue as and we'll to act it, So accordingly. watch visibility we'll

Operator

Thank you.

comes JPMorgan. with next question from Our Sur Harlan

Harlan Sur

Good afternoon.

Just housekeeping want off start quick with to a item.

on ASIC on cloud that mission demand the here infrastructure just is we're strong. annualizing per now your hearing And pull strong all design the than Because main the greater compute or prior $XXX given pipeline question, million unfolding year offload business, full the business for is that's in Just then year? that critical. win outlook, uncertainties is my your

here typically bad. will good Your large and spend times in customers in

Is software your driving And is second the is on multiple just the as revenues confidence the the infrastructure XX% to believe that ratable annuity-like that software over business in so quarters. half? predictable important, revenue, I XX% fairly on sustainability what business

Hock Tan

Absolutely.

world. indicated As running in the applications as running earlier, say largest the transactions companies largely, of the is XXX I this all correctly, processes, the infrastructure you mission-critical software

multi-year We contracts to committed have doing business, keep revenue are fixed and with these structures. payment

So a software having a a product nice this nice our slug yes, of portfolio. that's infrastructure thing about – that's in – way, that's within a very

Operator

Thank you.

Pitzer Credit Our with next question comes from John Suisse.

John Pitzer

you that you in curious excess customers your And fiscal about XX concerned some putting having all you're letting if at me you're not ask supply sounds your fiscal days? uncertainty Yes. to of Good cushion for I'm from seasonal guide. Hock, like for for that ability inventory end pulling the worried appreciate up afternoon, so the XQ the that guys. normal COVID-XX question. Thanks though, rationale are XQ, for the perhaps kind the to being as a from I they're pulling are any in just full somewhat characterizing orders It year and because fiscal all quarter, guide. we

Hock Tan

question. Interesting

about pretty remarks, we halfway and As much are QX XXXX. I just fiscal for QX through almost we in indicated my

As have end, we to In will who those of April those for have you QX have clear us. parts. We line backlog. visibility much on we're end And sight. going and of are how others, take going we to parts produce know, pretty

our it, confidence. of So we our as basis and, that's call the pretty focus much

Operator

you. Thank

Our next Bernstein question Research. comes from Stacy Rasgon with

Stacy Rasgon

goes for level and know are is, into Thanks to a given you if what I formula XXXX it? how year be year-over-year guys. next dividend XX your investment-grade cash down cash kind XX-month rating down. taking the flow XX.X,XX to And as and maintain Hi, flow – you that need coming may free say, question. EBITDA free about leverage my it's potentially wanted you thinking in of

Tom Krause

It's Tom. Yes, Stacy.

perspective, X I into as from an leverage think on forma billion year. with over pay some by well EBITDA year of what from contribution basis the the X.X gone forma pro the looking leverage debt included levels, Symantec. roughly at $X had we maintaining on down times pro Symantec was end the a as the to That

that largely is frankly. intact, So

of we the cyclical downturn know, off and least half. think, semis in last a you year through I also first at came as

discussed, we're CA frankly, and flat semi we – to the we're actually if side – is up As on anything,

So where a bit quite organic take would from actually an in meaningful EBITDA the a would business, of standpoint, year-over-year, Symantec the be EBITDA contribution. it drop down drop very actually especially given

we So I think level feel a as leverage pretty from our rating relates profile, to and comfortable. standpoint it

talked the think cash and discussed half. hold well. to we're some Obviously, I in billion second are up I premature. flows. going flows reasonably running We've about it's we sort the half, Even in downside where near dividend, of are scenarios, first the cash $X think On

when a costs, we're And you downside actually even performance look year relative include to be at flow well you going so that up basis to the cash as when restructuring on last in scenario.

get So to changing policy. dividend we'd lot have our at a looking worse things would where be

fact, the tell is the see of the we businesses of We'd course. usually to are business think In relative you these fundamentals what of and at that meaningfully look I I would any fundamentals. changing

And pretty are can the support committed flows the as and there so cash we're dividend to expect, to that. you

Hock Tan

our that is from. of that of numbers cycle we're emerging that, contribution XXXX, way here. we've in integrating we On begin – close adding second got and adding One in billion, XXXX are on a And for to terms the in low Stacy, simply, in is, with putting anyway two we Another EBITDA, set to of on. tailwinds semiconductors, sure. thing sum of and EBITDA of way, is the revenue Symantec that's $X.X to improving downturn our a

have to impact too from we the that opportunity fact offset an will any COVID-XX. helps – it's So that

Operator

you. Thank

Curtis will Blayne from question Barclays. Our with come next

Blayne Curtis

questions. guys. Thanks for Hey, taking my

some perspective. obviously, through comment markets market correction. went from is across maybe just your if comment I was if supply wondering It can seems those what chain the on, end strong, a end quite so getting curious And two Just data in business? bit better center enterprise like it's you're inventory you seeing a can you by

Hock Tan

you answer actually, – would before But now, this tell answer. fairly, love that question, to call let I I'll delusional. I COVID-XX. At since seem me you it, point might it asked,

Still, if COVID-XX, the as has it this that. the we're in business today Before been recovering. reflects numbers, right. I QX some – QX, had what ways, we it say, nicely business, semiconductor and of – out pointed at from The recovering. It's seeing impact you're you is look been –

In last down fact, down was take XXXX. ago. now a QX if virtually you for year, semiconductor from segment, X% year-on-year passed, QX X%. guidance And QX the for XXXX, is solutions QX XXXX just our year flat we're

that see recovery. You

to we Now second gradual, be mentioned half before more it's been had starting you and data for had above, to muted still the is spending, reasons accelerate. which hoped which center accelerated the

you of clear. There was is enterprises, the right. only on a centers, consumer we that would say our limited is limited a the very guys more that had – for our And unclear. Visibility say, still the prudent you're put don't we But their this not by very know. bottom it's hit change clear XXXX. a COVID-XX. I our you that, going are indirect would But have on know data thing less on but distinct things impacted still recovery turn should the that behave, from behavior, think in I'll pre-COVID-XX, spending – sure. people basis how cloud infrastructure, very would to – should be Hence, We The don't you position.

Operator

Thank you.

comes from question with Hari Goldman Toshiya Sachs. Our next

Toshiya Hari

that with position changes sort you more business thought to have the I Thank could Hock, with process? long-term. keep do what about you business? consideration, largest Or the to the Hi, of terms it in into you basically and that others business that down invest the competitive taking of think was provide other the decision? mentioned for little were the price profitability long-term, to question. in there you Or a in that of were terms RF valuation, careful color your perhaps hoping more or willing after pay? agreement guys you long-term decided pinned how Was went guys. does that the market it you. of customer your long-term Thank the any your

Hock Tan

point. Very good

the last called earnings hit couple, call assets. have not the didn't as call These don't financial assets. yes, Doesn't may product – been most last reasons, strong it in You we franchises. That them the these financial We – have franchises, it's the to which after of case. forget, continues on are – the – change except technology. are not But the means We define. noncore. we fact way be say the with

good the in and We are, position. have we by lead continue to we And be position. a far, in that

And respect with really, of to is that guess, difficult position the now the next-generation road bands certainty the spectral come especially terms large market, and XG sustainability drive a changing franchise, the require our extent our our and in coming clarity is that mind of with I phones filters there very market to high-end and unique strong filters, that with all XG map with one phones. of a fact to to plethora long-term

but nothing it. can it the can I more, all or what out relates definitely value of say we last that in less not part. has was So to do, But it fact, it. achieve to

Operator

Thank you.

Our Equity. with Charter next question Edward will Snyder come from

Edward Snyder

maybe of and, half your the not about second big given networking, from most to software mostly of impact of certainly that Between it's annual does such your quarterly got a Thanks do impact that to and that in lot. infrastructure larger it's on with your – coronavirus wireless more your comments a infrastructure, your the the guides timing to move about imply the uncertainty and annual retail wireless year business? on with has and say,

pile And especially it might resources trade-off sector here, than as enough side? more between a your of feel – a studied decline you the have accretive have Thanks. you build more just the software steep is you steady in go given expected that given to sooner valuations the it to you then, with boost cash shifting it? bigger the big on maybe is see comfortable you Tom, acquisitions until Or can in

Tom Krause

environment, Let on which hey, me capital our liquidity. on given focused is, We're everything we're this is, returns. where take the business. the We're on focused in first running part, focused

improves. the think, all is I at time for being, I'll the That's visibility there. least say off M&A until table

Hock Tan

the the And know second, I well Ed, answer as on you as do.

So won't on don't or I it. I – expand need to comment

Operator

Okay.

will Our come Aaron with Fargo. next Rakers Wells question from

Aaron Rakers

I Yes, forward. thanks on wanted for your the the going taking and I question. contribution expectations guess ask Symantec to

You the of look you that us mentioned would here trajectory importantly, help And from about still the where What's year. you that how integration expect ramp million? on operating to relative ramp perspective? see stand of kind Can of understand how us? the just revenue that this from of through course might $XXX we you an done? more the think efforts? And front do Or expense been do in kind what's to

Tom Krause

well to purchase. We're Tom. It's an from the took integration decision It's unique expense it's asset Things standpoint. Sure, are deal. an quickly. a We drive progressing ahead operating well.

off large, and by decent start. to think, a I So we're

On the perpetual the which a numbers. we had reflected we take the a is revenue on the Symantec side relative – the more brought purchase bit form did licenses. of When accounting business haircut, in in over, to CA,

also We're good services that's set We so successfully the getting that thing. sold to with have a managed Accenture, business. close

articulated the half, that to second think I toward rate $X.X to we'll billion is you'll continue second move that but what And we in so and the last we quarter. into come as not the run online bookings continue quarter progress only see

Operator

Thank you.

with Our will Piper next from question come Kumar Harsh Sandler.

Harsh Kumar

Yes.

question Hock. a software on your So business,

think software grow this under How customers. managers, can much. of flat, better You're maybe that building umbrella? to being businesses your under table These grow you growth? complex are guys at They bringing fast were better the previous X% targeting very you growth top enterprise management to businesses are the best. of companies enable do these Outside didn't what

Hock Tan

– Well, to CA software it with able dev over have one achieve. have go mainframe, in to as comprises, our software what you we it's data this distributed today. operation we – to line software of – relates is and that we'll mean the doesn't was pretty forever, And but through business been to out some yes, under we operation limited year That, know, CA achieve. various course, have of and something and set as we together. of automation ops, distributor belt that

And is this in one quarter, QX this CA we revenues ratable having $XXX hitting that reported how that. revenues revenue. QX, revenue. measure That's And past of – for we this million

So this none million that acceleration, level a we rate this from increase mid perpetual, of ago. forward, it's to $XXX and of rate very infrastructure that's million year $XXX flat we us, sustain going a a kind X% the to hope embedded single-digits. – a at revenues, very, And software the that's grow business in

do pleased that I'm very – CA And able to for we're in that now.

way for $X we Symantec will long-term be infrastructure business be same. Brocade, includes that digits same one year and that over this to billion grow see us. software, of expect We the the and mid-single into and is do profitable the able to put And the business course, model, of model a in financial extremely

Operator

you. Thank

Our from with William Stein next SunTrust. question will come

William Stein

in call there the in been has that you Hock, to earlier said change for my no your remarks prepared bookings. Great, question. you thank taking

You said years, orders, not in I in maybe make meaningful. decades wonder I supply certainly in thing. this way would that meaningful of on couple the the statement the in But has what's think something chain manage with as going they're same have if your the been past, changed weeks. essentially given customers would been a last that COVID quite

with draw we to optimism few analysts comment much as relates as next it investors the outlook? medium-term that how words, sort or other In should just from weeks of beyond

Hock Tan

are. – – way there's those is the forget, horizon bookings just on this there Don't limited a

and talking out are of So only calendar you that over of that are time. looking this We visibility far the because don't not book end at a bookings very of certain We're bookings horizon limited the a ahead. limited period to year. run

on limited – bookings, horizon discernible. of that in So not we're is seeing it's what

so. happen. I I'm That that's been – in as That's the seen of on way have we the horizon, over Whatever we would us we not any the I have books, have we beyond level not on been in significant the bookings couple giving the any What changed. seeing booking, on booking information we pattern any has or the that, months Neither what way our to the of pattern our change. we is cancellations. point. have it not – and past of But or of Another making put phrasing as much have mean change what cancellations is and in you of direct this on as guesses that are are – at any placed making books dramatic today. backlog seen it on orders seen any what might on that we're – any not

Operator

you. Thank

Mitch will next RBC come Steves Our Markets. with Capital question from

Mitch Steves

you Hey, guess, you and about taking thinking the circle talking the I COVID-XX guys about most in changing to and guys. But of impact, business solved do lines back what view, number now? to you XX% what business think impacted don't hate guys but about some do lines expect know my get you're given of the if will guys maybe the handset we full X% of to maybe year I kind And the quickly? Thanks on how be for you're this. shipments think of we doesn't a that question. expected I terms this sort for kind decline. mentioned how from

Tom Krause

Tom. this is Mitch, Yes.

impacted half it's to to is, hang most phones, discretion-related like cloud Less going are meaningful spend the consumer be probably I markets most with on the certainly, ramp, And self-explanatory, we've pretty QX. think consumer impacted likely year, but any impacted, the Hock in about, XG least side. as I expected about think, end potentially. and have there. order a pushouts the in of talking some talked in was and so particularly there second the how impact infrastructure lot the would of in should the

Broadband well you of improve. that some could actually fact, it In COVID-XX as paint activity suggest would the social could distancing certainly picture that for a terms in could of matter. improve

contracts ratable recurring it's we on almost These of And of that so be It's companies, exclusively, recurring. have then, level the on revenue. now Symantec, it's high software CA front. side, whether XXX% and a visibility course, three-year or it a lot of

the out, be concerned plays be so we'll more at the point. it where you on items consumer-related only how this And would would probably could but area I see say most

Operator

conference Ladies and today's Thank you session participation. for today's your well gentlemen, as as concludes question-and-answer that call.

You may and disconnect, wonderful a have day. now

Broadcom (AVGO) 12 Mar 202020 Q1 Earnings call transcript