Broadcom Beats Revenue, Profit Targets in Q2Wednesday, July 25, 2012
Irvine-based chipmaker Broadcom Corp. on Tuesday reported revenue and adjusted profits in the second quarter that beat Wall Street estimates.
Broadcom posted record revenue of $1.97 billion in the June quarter, up 9.7% from a year earlier.
Analysts on average had forecast sales of $1.95 million.
Adjusted profits topped $435 million, up 3.6% from a year ago.
Wall Street had expected a profit of $369 million.
Gross margin came in at 52.2%, up 1.1% from a year earlier.
Broadcom specializes in communication chips that go in tablets, smart phones, set-top boxes, broadband modems, networking gear and other products.
The company provided guidance on revenue, gross margins, and research and development for the current quarter.
Broadcom projects revenue between $2 billion and $2.15 billion, in line with Wall Street estimates.
Gross margins are projected to be roughly flat from the recently ended quarter.
Research and development is projected to hit $625 million to $640 million, up from $620 million in the recently ended quarter.
Investors sent Broadcom shares up more than 1% in afterhours trading to a market value of about $16.9 billion. Broadcom shares are up 8.8% so far today.