On April 26, semiconductor maker Broadcom (NASDAQ:BRCM) released first-quarter earnings for the period ended April 1.

  • Sales flat, earnings down. Investors felt the sting and dropped the stock 6% in afternoon trading.
  • For the second quarter, management expects revenues in the range of $890 million to $905 million, driven by the Bluetooth, wireless LAN, Ethernet switching, and digital TV businesses.
  • With 350 total ratings, the stock carries a two-star tag in Motley Fool CAPS.

(Figures in millions, except per-share data)

Income Statement Highlights

Q1 2007

Q1 2006

Change

Sales

$901.5

$900.6

0.1%

Net Profit

$61.0

$117.7

(48.2%)

EPS

$0.10

$0.20

(50.0%)

Diluted Shares

585.7

601.2

(2.6%)

Get back to basics with a look at the income statement.

Margin Checkup

Q1 2007

Q1 2006

Change*

Gross Margin

51.1%

51.8%

(0.7)

Operating Margin

3.2%

10.6%

(7.4)

Net Margin

6.8%

13.1%

(6.3)

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q1 2007

Q1 2006

Change

Cash + ST Invest.

$2,489.3

$2,140.6

16.3%

Accounts Rec.

$363.0

$351.6

3.2%

Inventory

$200.4

$226.3

(11.4%)

Liabilities

Q1 2007

Q1 2006

Change

Accounts Payable

$334.9

$323.9

3.4%

Learn the ways of the balance sheet.

Cash Flow Highlights

Q1 2007

Q1 2006

Change

Cash From Ops.

$221.6

$231.4

(4.2%)

Capital Expenditures

$41.0

$15.0

173.8%

Free Cash Flow

$180.7

$216.4

(16.5%)

Find out why Fools always follow the money.

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