Broadcom Limited (NASDAQ:AVGO) Q2 2019 Earnings Conference Call Transcript

Jun 13, 2019 • 05:00 pm ET

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Broadcom Limited (NASDAQ:AVGO) Q2 2019 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Q2 2019 Broadcom Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will follow at that time. (Operator Instructions) As a reminder, this conference is being recorded.

I would now like to introduce your host for today's call, Ms. Beatrice Russotto, Director, Investor Relations. Ms. Russotto, you may begin.

Executive
Beatrice F. Russotto

Thank you, operator, and good afternoon, everyone. Joining me today are Hock Tan, President and CEO; and Tom Krause, Chief Financial Officer of Broadcom. After the market closed today, Broadcom distributed a press release and financial tables describing our financial performance for the second quarter of fiscal year 2019. If you did not receive a copy, you may obtain information from the Investors section of Broadcom's website at broadcom.com.

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

During the prepared comments section of this call, Hock and Tom will be providing details of our second quarter fiscal year 2019 results, guidance for fiscal year 2019 and commentary regarding the business environment. We will take questions after the end of our prepared comments.

Please refer to our press release today and our recent filings with the SEC for information on the specific risk factors that could cause our actual results to differ materially from the forward-looking statements made on this call.

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

So with that, I'll now turn the call over to Hock.

Executive
Hock E. Tan

Thank you, Bea, and thank you everyone for joining in today.

Let me touch on the second quarter results, after which I will update you on the current environment and our outlook for the second half of the year. Looking at the second quarter just passed, it really went as planned. Networking continued to perform very well and our broadband business started to recover. This was offset by the anticipated sharp decline in wireless, and the ongoing softness in storage.

On the other hand, the infrastructure software business delivered solid top line results, benefiting from the sustained enterprise demand for our mainframe and distributed software, as well as SAN switching products.The integration of CA is progressing well. Just last week, we reached a major milestone with day 2, which is the integration of the CA's business processes onto Broadcom's IT platform. We remain confident that we can meet if not exceed the long-term revenue and profitability targets that we laid out for CA to you last year. Renewals in our CA business are strong and the dollar commitments from our core customers continue to grow.

Now let me address