SAN FRANCISCOFabless chip vendor Broadcom Corp. Thursday (Oct. 22) reported a second consecutive quarter of greater than 20 percent sequential revenue growth, but the company warned it expects fourth quarter sales to be flat.
Broadcom (Irvine, Calif.) reported third-quarter sales of $1.25 billion, up 21 percent compared to the second quarter and down 3 percent compared with the third quarter of 2008.
Broadcom's third-quarter revenue beat consensus analyst expectations, which pegged the company's sales for the period at $1.16 billion, according to Yahoo Finance.
Third-quarter net income in accordance with generally accepted accounting principles was $84.6 million, or 16 cents per share, Broadcom said, up from $13.4 million, or 3 cents per share, in the second quarter, but down from $164.9 million, or 31 cents per share, for the third quarter of 2008.
In forecasting that fourth-quarter revenue would be flat sequentially, Broadcom is exercising caution due to continued macroeconomic uncertainty, executives said on an analyst conference call following the third-quarter earnings report.
Broadcom generally posts stronger revenue growth in the second and third quarters of the year, said Eric Brandt, the company's chief financial officer. Broadcom is waiting to see the strength of customer sell-through during the holiday season and plans to provide an update to its guidance in December, he said.