SAN FRANCISCOóBroadcom 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.