The wireless communications segment of Avago Technologies grew 6.9 percent in the third fiscal quarter of 2015 (ending August 2, 2015), generating revenue of $616 million. This was 69 percent above the same quarter one year ago. Hock Tan, president and CEO of Avago, said the results reflected "strong seasonal growth," as smartphone manufacturers ramp new models for the fall season.
Avago reported total Q3 GAAP revenue of $1.74 billion, a 7.5 percent increase from Q2 and 37 percent above the prior year's quarter. The revenue included contributions from Emulex, which Avago acquired on May 5. The prior year's quarter did not include revenue from Emulex or PLX Technology, acquired by Avago on August 12, 2014.
Avago's GAAP gross margin was $884 million, or 51 percent of net revenue. This compares with gross margin of $846 million, or 52 percent of net revenue last quarter, and gross margin of $393 million, or 31 percent of net revenue in the same quarter last year. Non-GAAP gross margin from continuing operations was $1,063 million, or 61 percent of net revenue. This compares with gross margin of $998 million, or 61 percent of net revenue last quarter, and gross margin of $735 million, or 57 percent of net revenue, in the same quarter last year.
GAAP operating income was $299 million, or 17 percent of net revenue. This compares with operating income of $418 million, or 26 percent of net revenue, in the prior quarter, and a loss of $162 million, or 13 percent of net revenue, in the same quarter last year. Non-GAAP operating income from continuing operations was $733 million, or 42 percent of net revenue. This compares with operating income from continuing operations of $701 million, or 43 percent of net revenue, in the prior quarter, and $428 million, or 33 percent of net revenue, in the same quarter last year.
Net income, which includes the impact of discontinued operations, was $240 million, or $0.84 per diluted share. This compares with net income of $344 million, or $1.21 per diluted share, for the prior quarter, and a net loss of $164 million, or $0.65 per diluted share in the same quarter last year. Non-GAAP net income from continuing operations was $660 million, or $2.24 per diluted share. This compares with net income of $620 million, or $2.13 per diluted share last quarter, and net income of $347 million, or $1.26 per diluted share, in the same quarter last year.
Avago generated $592 million in cash from operations and spent $148 million on capital expenditures in the third fiscal quarter. The cash balance at the end of the quarter was $1.4 billion, compared to $2.5 billion at the end of the prior quarter.
