Irvine-based chipmaker Broadcom Corp. today reported third-quarter revenue and adjusted profits that beat Wall Street expectations.
The company posted revenue of $2.26 billion in the recently ended quarter, up 5.3% from a year earlier and topping estimates of $2.18 billion.
Adjusted profits hit $569 million, up 23.7% and beating analyst forecasts of $496.4 million.
Broadcom specializes in communication chips that go in 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 projects sales of between $2 billion and $2.15 billion in the December quarter, in line with analyst expectations of $2.11 billion.
Gross margins, a key measure for technology companies, are projected to be 54.2% to 55.7% for the current quarter compared to 54.3% in the September quarter.
It said spending on research and development should be down $40 million to $60 million from $646 million in the last quarter.
Broadcom entered the recently ended quarter with plans to cut about 20% of its workforce and consolidate or close 18 locations around the world as part of a restructuring plan prompted by the wind-down of its unsuccessful baseband business.
It said at the time that the restructuring would save it about $700 million in research and development, and general and administrative costs annually.
Baseband chips, a segment dominated by San Diego rival Qualcomm Corp., are essentially the technical brains of mobile phones.
Investors seized upon the rosy quarterly performance and projected R&D cuts, sending shares up nearly 5% in after-hours trading to a market value of $22.06 billion.
