Shares of Irvine’s Broadcom Corp. rose in afterhours trading Tuesday after the chipmaker reported better-than-expected quarterly results.
The stock jumped nearly 6% afterhours on a recent market value of about $13 billion.
First-quarter sales totaled $1 billion, up nearly 15% from a year earlier and above the $992 million expected by analysts.
Broadcom saw a boost of $32 million to its top line from various licensing deals for its chips.
Revenue came in at the high end of Broadcom’s own outlook of $975 million to $1 billion.
For the first time in recent memory, Broadcom reported results only according to generally accepted accounting principles.
In the past, the chipmaker has reported two sets of results, one as GAAP and the other non-GAAP.
Including costs for stock compensation, research and development, write-downs on assets and other charges, Broadcom posted $74 million in profits, up 22% from a year earlier.
That beat analysts’ expected $32 million for profits including charges.
The company saw charges related to its $48 million buy of Sunext Design Inc. last month, roughly $4 million in legal fees related to a patent infringement suit and $12 million it paid to the Securities and Exchange Commission as part of a settlement for stock options backdating.
See related story on SEC settlement.
The company’s outlook for the current quarter is expected to be come in a conference call with analysts later Tuesday.
“While we remain cautious on the macroeconomic front, based on strong ordering trends from our customers throughout the first quarter, we expect solid revenue growth for the second quarter within each of our three major target markets,” Chief Executive Scott McGregor said in a statement.
