Orange County Business Journal

Broadcom Shares Up on Q4 Earnings, Dividend Increase

Chris Casacchia Tuesday, January 31, 2012

Shares of Broadcom Corp. are up in afterhours trading Tuesday after the Irvine-based chipmaker announced fourth quarter financials that beat Wall Street expectations.

Investors sent Broadcom shares up nearly 3% in extended trading to a market value of about $18.5 billion.

Net revenue in the recently ended quarter was $1.82 billion, down 6.4% from a year earlier and slightly better than Wall Street expectations.

Analysts on average forecast revenue of $1.8 billion.

Adjusted profits topped $366.5 million, down nearly 25% from a year ago and above Wall Street estimates.

Analysts on average were expecting adjusted profits of $350 million.

In a separate announcement Broadcom said its board approved an 11% increase to its quarterly dividend to 10 cents a share, which may have also boosted afterhours trading.

Broadcom specializes in communication chips that go in tablets, smart phones, set-top boxes, broadband modems, networking gear and other products.

Broadcom provided guidance on revenue, gross margins, and research and development for the current quarter.

The company projects revenue between $1.7 billion and $1.8 billion, down from $1.82 billion a year ago and in line with analyst estimates.

Wall Street is expecting revenue of about $1.73 billion.

Gross margins are projected to be about 50.6%, flat from the recently ended quarter.

Research and development is projected to hit $701 million to $711 million, up from $636 million in the recently ended quarter.