Irvine-based chipmaker Broadcom Corp. after the close of intraday trading reported first-quarter revenue and adjusted profits that beat Wall Street expectations and provided a revenue target for the current quarter in line with estimates.
The company posted revenue of $2.06 billion in the recently ended quarter, up 3.7% from a year earlier and topping analyst forecasts of $2.01 billion.
The gains were driven by strong demand for its connectivity chips from high-end smartphone makers, such as Apple and Samsung, and its broadband offerings, the company said.
Adjusted profits hit $390 million, up nearly 98% from a year earlier. Analysts on average forecasted adjusted profits of $359.4 million.
Broadcom specializes in communication chips that go into tablets, smartphones, 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. It projected revenue in the June quarter of between $2.02 billion and $2.17 billion, in line with analyst expectations of $2.07 billion.
It projected gross margins, a key measure for technology companies, to be roughly flat or down to 54.3% compared to 54.4% in the March quarter.
Spending on research and development is projected to be between $524 million and $549 million compared to $539 million in the recently ended quarter.
