By Kristin Jones
Broadcom Corp.'s (BRCM) first-quarter profit more than doubled
as the chip maker continued to benefit from growth in the mobile
market.
Chief Executive Scott McGregor said the better-than-expected
results in the latest quarter were driven by wireless baseband and
connectivity chips.
"Looking forward, we see broad-based sequential growth driven by
our industry-leading portfolio of wired and wireless communications
platforms," Mr. McGregor said.
For the current quarter, the company expects revenue of around
$2.1 billion, above the $2.05 billion consensus estimate from
analysts polled by Thomson Reuters.
Broadcom, a supplier to smartphone giants Apple Inc. (AAPL) and
Samsung Electronics Co. (005930.SE, SSNHY), has been one of the
beneficiaries of a strong mobile market. Signs of a slowdown in
demand for Apple iPhones and iPads led some analysts to voice
concerns in recent days about Broadcom's latest-quarter earnings,
but the chip maker's diverse customer base was expected to soften
any blow. Broadcom also has been trying to grow its share in the
market for network processors.
For the latest quarter, Broadcom reported a profit of $191
million, or 33 cents a share, up from $88 million, or 15 cents a
share, a year earlier. The year-ago quarter included settlement
costs of $86 million. Excluding this and other impacts, earnings
were roughly flat at 65 cents a share. Analysts were expecting
per-share earnings of 56 cents.
Total revenue rose 9.7% to $2 billion, above Broadcom's January
projection of roughly $1.9 billion.
Gross product margin widened to 49.4% from 48.1%.
Shares rose 2.3% to $33.82 in after-hours trading Tuesday.
Through the close, the stock was down 5.2% over the past 12
months.
Write to Kristin Jones at kristin.jones@dowjones.com
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