SAN FRANCISCO—Broadcom Corp. Tuesday (July 27) became the latest chip vendor to surprise analysts with higher-than-expected quarterly sales, reporting record revenue of $1.6 billion for the second quarter.
Broadcom (Irvine, Calif.) said revenue improved by 10 percent compared with the first quarter and by 54 percent compared with the second quarter of 2009. The company reported a net income in accordance with generally accepted accounting principles (GAAP) of $278 million, or 52 cents per diluted share, up 32 percent compared to the previous quarter and more than 21 times the company's year-ago GAAP net come of $13 million.
Consensus analyst expectations called for Broadcom to report second quarter sales of $1.59 billion, according to Yahoo Finance.
"The second quarter was an exceptional quarter for Broadcom, as strong product demand within our Broadband and Mobile & Wireless segments resulted in record revenue and earning," said Scott A. McGregor, Broadcom's president and CEO, in a statement.
McGregor said Broadcom expects increasing demand for communications equipment and market share gains will drive "strong" third quarter revenue growth at Broadcom.
We must be careful when we analyze the latest sales figures reported by chip makers at this time of the year. It is more informative to find out how they are doing their accounting.
For instance, I feel most of their customers may have placed huge orders for chips in the previous quarter. These early orders are needed so that the customers have enough lead time to complete their own products for shipping in time for the holiday season.
Broadcom for instance may have chipped these orders in the revenue portion their books even though they have not received any money. I would not be too surprised if sales figures for chip manufacturers flatten in the last two quarters
1.6B in 1 quarter is pretty impressive. Seems Broadcom already about to overtook Infineon in sales last quarter. I guess, with so many sockets in Apple iProducts, this shouldnt come as a surprise to the analysts.
Join our online Radio Show on Friday 11th July starting at 2:00pm Eastern, when EETimes editor of all things fun and interesting, Max Maxfield, and embedded systems expert, Jack Ganssle, will debate as to just what is, and is not, and embedded system.