During the first fiscal quarter the Company generated $2,132 million in cash from operations and spent $3,513 million on share repurchases and eliminations consisting of $3,436 million in repurchases of 13.9 million shares and $77 million on withholding tax payments related to net settled equity awards that vested in the quarter (representing approximately 0.3 million shares withheld), as well as $99 million on capital expenditures.
On December 28, 2018, the Company paid a cash dividend of $2.65 per share of common stock, totaling $1,067 million.
First Quarter Fiscal Year 2019 Non-GAAP Results From Continuing Operations
The differences between the Company's GAAP and non-GAAP results are described generally under "Non-GAAP Financial Measures" below, and presented in detail in the financial reconciliation tables attached to this release.
Gross margin from continuing operations was $4,133 million, or 71.4 percent of net revenue. This compares with gross margin from continuing operations of $3,725 million, or 68.4 percent of net revenue, in the prior quarter, and $3,454 million, or 64.8 percent of net revenue, in the same quarter last year.
Operating income from continuing operations was $3,052 million, or 52.7 percent of net revenue. This compares with operating income from continuing operations of $2,862 million, or 52.5 percent of net revenue, in the prior quarter, and $2,571 million, or 48.2 percent of net revenue, in the same quarter last year.
Net income from continuing operations was $2,446 million, or $5.55 per diluted share. This compares with net income of $2,546 million, or $5.85 per diluted share, in the prior quarter, and net income of $2,345 million, or $5.12 per diluted share, in the same quarter last year.
Free cash flow from operations, defined as cash from operations less capital expenditures, was $2,033 million in the quarter, compared to $1,465 million in the same quarter last year.
First Quarter Fiscal Year 2019 Non-GAAP Results |
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| Change | ||
(Dollars in millions, except per share data) |
| Q1 19 |
| Q4 18 |
| Q1 18 |
| Q/Q |
| Y/Y |
Gross margin |
| 71.4% |
| 68.4% |
| 64.8% |
| +300bps |
| +660bps |
Operating expenses |
| $ 1,081 |
| $ 863 |
| $ 883 |
| +$ 218 |
| +$ 198 |
Net income |
| $ 2,446 |
| $ 2,546 |
| $ 2,345 |
| -$ 100 |
| +$ 101 |
Earnings per share - diluted |
| $ 5.55 |
| $ 5.85 |
| $ 5.12 |
| -$ 0.30 |
| +$ 0.43 |
Other Quarterly Data
Net revenue by segment: |
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|
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|
|
|
|
| Change | ||
(Dollars in millions) |
| Q1 19 |
| Q4 18 |
| Q1 18 |
| Q/Q |
| Y/Y | |||||||||
Semiconductor solutions |
| $ 4,374 |
| 76% |
| $ 4,874 |
| 90% |
| $ 4,955 |
| 93% |
| -10% |
| -12% | |||
| Infrastructure software |
| 1,403 |
| 24 |
| 513 |
| 9 |
| 328 |
| 6 |
| 173% |
| 328% | |||
| Intellectual property licensing |
| 12 |
| - |
| 57 |
| 1 |
| 44 |
| 1 |
| -79% |
| -73% | |||
| Total net revenue |
| $ 5,789 |
| 100% |
| $ 5,444 |
| 100% |
| $ 5,327 |
| 100% |
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