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.
David Patterson, known for his pioneering research that led to RAID, clusters and more, is part of a team at UC Berkeley that recently made its RISC-V processor architecture an open source hardware offering. We talk with Patterson and one of his colleagues behind the effort about the opportunities they see, what new kinds of designs they hope to enable and what it means for today’s commercial processor giants such as Intel, ARM and Imagination Technologies.