Topic: How To Invest

Pat: Could I get your view on the new Broadcom, formerly Avago? Is it closely dependent on Apple or does it have a wider revenue stream? Thanks.

Article Excerpt

A: Broadcom Ltd., $153.72, symbol AVGO on Nasdaq (Shares outstanding: 390.3 million; Market cap: $60.9 billion; www.broadcom.com), took its current form on February 1, 2016. That’s when Singapore-based Avago Technologies Ltd. acquired Broadcom for $37 billion in cash and shares. As a result, Broadcom shareholders now own about 32% of the combined company. Following the merger, Avago changed its name to Broadcom. However, it continues to use the AVGO trading symbol. The new company specializes in chips for use in wired networks, wireless communications, enterprise storage and industrial applications. Its products go into devices such as TV set-top boxes, cable modems, high-speed networks, mobile phones and GPS devices. In its fiscal 2016 first quarter, which ended January 31, 2016, the company’s revenue rose 1.2%, to $3.82 billion from $3.78 billion a year earlier. It earned $407 million, or $1.01 a share. That’s a big improvement over its year-earlier loss of $599 million, or $1.63. These figures exclude costs related to the merger…

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