Broadcom Beats Q4 Expectations, Revenue Outlook Misses Q1 TargetTuesday, January 29, 2013
Irvine-based chipmaker Broadcom Corp. on Tuesday reported fourth-quarter sales and earnings that beat Wall Street expectations and provided a revenue target below estimates for the current quarter.
Broadcom reported revenue in the December quarter of $2.08 billion, up 14.3% from a year ago.
Analysts on average had forecast sales of $2.07 billion.
Adjusted profits topped $462 million, up 26% from a year earlier.
Wall Street had expected an adjusted profit of $411.7 million for the quarter.
The strong quarterly gains pushed Broadcom’s revenue in 2012 to a record $8.01 billion, up 8.4% from 2011.
Net income for the year hit $1.76 billion, up 4.1%.
The company’s shares were down slightly in afterhours trading to a market value of $19.01 billion.
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.
The company projected sales of about $1.9 billion in the current quarter, below analyst expectation of $2 billion.
Gross margins in the current quarter are projected to be about 49.5%, flat from the recently ended quarter.
Research and development is projected to range from $797 million to $812 million, up from $762 million in the recently ended quarter.
Broadcom said separately that its board approved a 10% increase to its quarterly dividend to 11 cents a share.