Broadcom expects $7.9 billion in software revenue

Broadcom provided second-quarter revenue guidance of $7.9 billion and adjusted EBITDA of 62.5% of revenue guidance.
Broadcom expects semiconductor revenue growth to accelerate to 25%. Excluding wireless, it will be 35% year-on-year.

“Broadcom’s record first-quarter results were driven by strong enterprise demand and investment in next-generation technology by hyperscales and service providers,” said Hock Tan, president and chief executive officer of Broadcom. . “Our outlook for the second quarter calls for accelerating year-over-year growth.”

Broadcom’s revenue rose 16% to a record $7.7 billion and operating profit rose 23% for its first quarter of fiscal 2022, which ended Jan. 30, 2022.

Broadcom’s semiconductor solutions revenue increased 20% to $5.9 billion and infrastructure software revenue increased 5% to $1.8 billion.

Hyperclouds are upgrading their data centers, and service providers and telcos continue to deploy next-generation fiber to the home.

Networking revenue grew 33% to $1.9 billion, representing 32% of semiconductor revenue, driven by large-scale deployment of Tomahawk 4 and compute loans across multiple customers hyperscale as they upgrade and expand their data centers. In enterprises, campus switching upgrades continue to accelerate.

Investments in 5G backhaul drive Qumran routing product growth. The opportunity for silicon routing has expanded to hyperscale in a very significant way, moving Ethernet into the back-end network of large-scale AI/ML clusters.

Server storage revenue increased 32% to $801 million, representing 14% of semiconductor revenue, largely due to the continued recovery in enterprise IT spending, much of it was deployed to upgrade the compute service.

Broadband revenue increased 23% to $911 million, representing 16% of semiconductor revenue, largely due to increased deployment of next-generation PON and DOCSIS, cable modem, with rates connection rates of Wi-Fi 6 and 6E in home gateways.

Charter announced trials of DOCSIS 4.0 operating at speeds of 8.5 gigabits downstream and 6 gigabits upstream, in both CPE and remote note. Comcast begins rolling out its 6E DOCSIS 3.1 Wi-Fi Gateway. AT&T has announced multi-gig PON service on its gateways. All use Broadcom SoCs.

Broadcom remains the market leader in supplying Wi-Fi 6 and 6E chips to major phones as well as routers, enterprise access points and carrier gateways. Broadcom has shipped more than one billion Wi-Fi 6 and 6E radios in total in just about three years since its launch.

Broadcom is the industry leader, investing in Wi-Fi 7 to complement 10G PON and cable modem. “We see this as the next step in the development and deployment of broadband globally. In the United States alone, access to infrastructure awaits the site $65 billion over the next five years to connect more homes to high-speed broadband. We expect our broadband business to grow 20% in the second quarter,” Hock Tan said on a call with analysts.

Wireless revenue of $2 billion accounted for 34% of semiconductor revenue. North American customer demand for the products remained strong in the quarter, driving wireless revenue up 10% sequentially and 4% year-on-year from the record quarter of fiscal 2021.

Infrastructure software revenue of $1.8 billion increased 5% and accounted for 24% of total revenue. Core software revenue increased 6%.

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