Q2 2019 Earnings

Reported June 29, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Metric	Q2 2019	Q1 2019	Q2 2018	QoQ Change	YoY Change
Revenue	$2.2B	$1.2B	$1.2B	77.8%	81.1%
Op. Income	$609M	$557M	$672M	9.3%	-9.4%
Gross Margin	60.3%	96.7%	108.5%	-36.3pp	-48.1pp
Net Margin	19.0%	31.5%	40.4%	-12.5pp	-21.4pp
EPS (Diluted)	$1.82	$1.73	$2.13	5.1%	-14.6%

Revenue Flow

Item	Amount
REVENUE	$2.2B
Cost of Revenue	$860M
GROSS PROFIT	$1.3B
R&D Expenses	$0
Selling & Marketing	$20M
General & Administrative	$513M
SG&A Expenses	$533M
Other Expenses	$167M
Operating Expenses	$700M
Cost & Expenses	$1.6B
OPERATING INCOME	$609M
Interest Income	$1.8B
Interest Expense	$808M
Other Income/Expenses	$0
INCOME BEFORE TAX	$609M
Income Tax Expense	$165M
Net Income from Continuing Ops	$444M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$412M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$412M
D&A	$80M
EBIT	$609M
EBITDA	$689M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$2.2B
Cost of Revenue	$860M
GROSS PROFIT	$1.3B
R&D Expenses	$0
Selling & Marketing	$20M
General & Administrative	$513M
SG&A Expenses	$533M
Other Expenses	$167M
Operating Expenses	$700M
Cost & Expenses	$1.6B
OPERATING INCOME	$609M
Interest Income	$1.8B
Interest Expense	$808M
Other Income/Expenses	$0
INCOME BEFORE TAX	$609M
Income Tax Expense	$165M
Net Income from Continuing Ops	$444M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$412M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$412M
D&A	$80M
EBIT	$609M
EBITDA	$689M
EPS	$2
EPS Diluted	$2

Balance Sheet

Item	Amount
Cash & Equivalents	$4.6B
Short-Term Investments	$17.3B
Net Receivables	$10M
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$21.9B
PP&E (Net)	$2.1B
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$217.7B
Tax Assets	$41M
Other Non-Current Assets	$361M
TOTAL NON-CURRENT ASSETS	$220.7B
TOTAL ASSETS	$242.6B
Account Payables	$0
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$175.1B
TOTAL CURRENT LIABILITIES	$175.1B
Long-Term Debt	$33.7B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$90M
Other Non-Current Liabilities	$18.3B
TOTAL NON-CURRENT LIABILITIES	$52.1B
TOTAL LIABILITIES	$227.2B
Common Stock	$2.3B
Additional Paid-In Capital	$211M
Retained Earnings	$12.0B
Treasury Stock	$0
Accum. Other Comp. Income	$0
Other Equity	-$1.4B
TOTAL STOCKHOLDERS' EQUITY	$13.1B
Minority Interest	$2.3B
TOTAL EQUITY	$15.4B
TOTAL LIABILITIES & EQUITY	$242.6B
Total Debt	$33.7B
Net Debt	$29.1B