Broadcom Ltd (AVGO) swung to a net loss for the quarter ended Oct. 30, 2016. The company has made a net loss of $632 million, or $ 1.59 a share in the quarter, against a net profit of $429 million, or $1.49 a share in the last year period. On an adjusted basis, net profit for the quarter was $1,549 million, when compared with $737 million in the last year period.

Revenue during the quarter surged 124.78 percent to $4,136 million from $1,840 million in the previous year period. Gross margin for the quarter contracted 169 basis points over the previous year period to 52.49 percent. Total expenses were 90.79 percent of quarterly revenues, up from 72.07 percent for the same period last year. That has resulted in a contraction of 1872 basis points in operating margin to 9.21 percent.

Operating income for the quarter was $381 million, compared with $514 million in the previous year period.

However, the adjusted operating income for the quarter stood at $1,719 million compared to $811 million in the prior year period. At the same time, adjusted operating margin contracted 251 basis points in the quarter to 41.56 percent from 44.08 percent in the last year period.

"Fiscal 2016 was clearly transformative for our company with the acquisition of Broadcom Corporation. We finished the year on a very strong note, delivering a record level of revenue with 9 percent sequential revenue growth in the fourth quarter" said Hock Tan, president and chief executive officer of Broadcom Limited. "Reflecting the operating leverage from our larger scale and improved profitability, we announced today a doubling of our dividend."

For the first-quarter, Broadcom projects revenue to be in the range of $3,990 million to $4,140 million. It projects adjusted revenue to be in the range of $4,000 million to $4,150 million.                               

The company has spent $9,840 million cash to meet investing activities during the year as against cash outgo of $241 million in the last year. It has incurred net capital expenditure of $718 million on net basis during the year, up 48.65 percent or $235 million from year ago.

Cash flow from financing activities was $7,704 million for the year as against cash outgo of $1,859 million in the last year period.

Cash and cash equivalents stood at $3,097 million as on Oct. 30, 2016, up 69.98 percent or $1,275 million from $1,822 million on Nov. 01, 2015.

Debt increases substantially
Broadcom has witnessed an increase in total debt over the last one year. It stood at $13,642 million as on Oct. 30, 2016, up 252.32 percent or $9,770 million from $3,872 million on Nov. 01, 2015. Interest coverage ratio deteriorated to 3.59 for the quarter from 12.54 for the same period last year.