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Broadcom fiscal Q1 earnings falls short of analysts' estimates

Broadcom Inc. earnings fell short of analysts' estimates as the company's semiconductor revenue declined on a yearly basis while software revenue shot up in the wake of an acquisition.

Revenue for the first fiscal quarter of 2019 was $5.79 billion, up 9% year over year but a bit short of consensus expectations of $5.83 billion, according to data compiled by S&P Global Market Intelligence.

On a GAAP basis, net income attributable to common stock during the period, which ended Feb. 3, was $471 million, declining from $6.23 billion in the year-ago quarter. Net income was impacted by discontinued operations, Broadcom said in a statement. Analysts had expected net income of $791.4 million.

GAAP EPS was $1.12, below analyst expectations of $1.81.

The quarter included restructuring, impairment and disposal charges of $573 million. The company spent $3.5 billion on share repurchases during the period.

Broadcom's semiconductor revenue in the first quarter was $4.37 billion, declining from $4.96 billion in the year-ago quarter. Software was a bright side for the company, with quarterly revenue reaching $1.4 billion, growing from $328 million a year earlier. The software revenue includes integration of operations of CA Inc., which Broadcom acquired in November 2018.

For the full fiscal year of 2019, Broadcom expects revenue of $24.50 billion.

The company said its board approved a quarterly cash dividend of $2.65 per share, payable March 29 to stockholders of record as of 5 p.m. ET on March 21.

Shares of Broadcom were up in after-hours trading following the earnings release.