Broadcom Posts 19% Decline in Quarterly ProfitTuesday, October 23, 2012
Broadcom Corp. posted a 19% drop in third-quarter profit Tuesday, despite reporting more robust revenue than expected.
The Irvine-based chipmaker also forecast a decline in revenue during the current quarter, to $1.95 billion to $2.1 billion through December. Analysts on average have projected $2.11 billion in fourth-quarter revenue.
Broadcom specializes in communication chips for tablets, smart phones, set-top boxes, broadband modems and networking gear.
The chipmaker reported a $220 million profit for the September quarter.
Its adjusted profit for the three-month period hit $476 million, topping Wall Street’s consensus projection of $424.8 million.
Quarterly revenue rose 9% from a year earlier to $2.13 billion, outpacing the average analyst expectation of $2.09 billion.
Broadcom Chief Executive Scott McGregor said the company achieved two milestones in the recent period: surpassing $2 billion in quarterly revenue and notching more than $1 billion in sales in its Mobile and Wireless division.
“Broadcom delivered record quarterly revenue and operating cash flow in Q3 driven by strength across all of our business segments,” McGregor said.