https://www.theregister.com/2024/06/13/broadcom_q2_2024/
12 replies (most recent on top)
CDK has been breached in a cyber security attack and has shut down their SaaS. Did you know that CDK is a user of VMware SD-WAN and SASE security since 2019? It didn't work so well this time, https://sase.vmware.com/resources/cdk-global
Here's the earnings call transcript that have all the details the Register article missed.
https://www.fool.com/earnings/call-transcripts/2024/06/12/broadcom-avgo-q2-2024-earnings-call-transcript/
Year to date, we have incurred about $2 billion of restructuring and integration costs and drove our spending run rate at VMware to 1.6 billion this quarter from what used to be 2.3 billion per quarter pre-acquisition. We expect spending will continue to decline toward a 1.3 billion run rate exiting Q4, better than our previous $1.4 billion plan, and will likely stabilize at 1.2 billion post-integration.
My take: 1.6/2.3 = 69.5% pre-acquisition head count currently, will trim to 1.3/2.3 = 56% pre-acquisition head count in Q4.
VMware revenue in Q1 was 2.1 billion and grew to 2.7 billion in Q2 and will accelerate toward a 4 billion per quarter run rate.
My take: no timeline given for achieving 4 billion revenue run rate, but with revenue on an increasing trend, less head count reduction is necessary.
"The only 'downside' is that as revenue continues to shrink, they'll have to keep laying ppl off to keep up that margin."
This is the Private Equity playbook for ensuring shareholder value. Employee layoffs must be maintained to balance the lower revenue results over time. Profit matters, people don't. VMware EUC, now Omnissa, employees will learn this when KKR takes control.
Margin matters more than revenue to Broadcom. Hock will happily, and expected to, lose some revenue, and as long as margin goes up, all is well.
Broadcom didnt buy VMW to grow revenue, they did it to make money. They'll still make good money as long as they can keep up a good margin.
The only "downside" is that as revenue continues to shrink, they'll have to keep laying ppl off to keep up that margin.
It's not going to be announced. You just won't get it. Your Manager knows and will tell you if you ask. Standard operating procedure.
Where and when was it announced that we are not getting bonuses and raises this year?
Big deal....
So.... ummm.... VMware revenue dropped from $13.35 billion (2023 fiscal earnings report) to $12.75 billion...
Would anyone care to read the story if they used the numbers in this fashion?
One more way for these fat cats to justify fu--ing over the people at the bottom...
If Hock had only not taken his $161 million bonus then the numbers can be skewed to a $439 million drop...
Also... how tf is this a plunge??
Its a drop in the billion $$ bucket...
And they already have it in the works to recoup this $$ by fu--ing us over even more...
It was announced that we get no raise and no bonuses this year...
So fu-k you and your supposed $600 million loss...
The register is the staffed by the d-mbest people in the entire industry. They feed on FUD.
The $600 number is something my 4 year old would have come up with without reading the additional regulatory filing that would have provided more color. But why bother, when this snippets provides the narrative?
"I believe VMware can keep most big customers for the next 10 years so no worries."
Hock adores the lazy CIOs that could make your prediction come to pass. Meanwhile, many other customers will, or plan to, abandon Broadcom over time. It's inevitable.
The BC d*** riders still left on care about the stock price
@zia+1t1idFZ8
Maybe, but they will not keep you employed for the next 10 years so no worries :)
Things can get better with some reorgs and cost cutting. I believe VMware can keep most big customers for the next 10 years so no worries.