SAN FRANCISCO—Chip makers Broadcom Corp. and PLX Technology Inc. Monday (July 25) reported second quarter results that exceeded consensus analysts' expectations.
Broadcom (Irvine, Calif.) reported second quarter sales of $1.8 billion, roughly flat with the previous quarter and up 12 percent compared to the year-ago quarter. The company posted a net income in accordance with generally accepted accounting principles (GAAP) for the quarter of $175 million, or 31 cents per diluted share, down 23 percent from the previous quarter and down 37 percent from the year-ago quarter.
On a non-GAAP basis, excluding charges, Broadcom reported a net income of $418 million, or 72 cents per diluted share, flat compared to the same period of 2010.
Consensus analysts' expectations had called for Broadcom to report sales of $1.8 billion and GAAP net income of 63 cents per share, according to Yahoo Finance.
"Broadcom delivered solid profitability in Q2 within our non-GAAP target model, with better-than-expected gross margins and record cash flow from operations," said Scott McGregor, Broadcom's president and CEO, in a statement. "Looking forward, we see strong demand for our communications solutions, reinforcing that innovation is driving customer demand. We expect solid growth in revenue and profitability in Q3."
Broadcom said it expect third quarter sales of about $1.9 billion to $2 billion. Eric Brandt, Broadcom's chief financial officer and executive vice president, said the company expects sequential revenue growth across all segments of its business, with revenue from the company's mobile and wireless business expected to rebound sharply from the second quarter.
PLX (Sunnyvale, Calif.) reported second quarter sales of $30.7 million, up 9 percent compared to the previous quarter and up 3 percent compared to the year ago quarter. The company posted a GAAP net loss of $6 million, or 6 cents per share, compared to a GAAP net loss of $3.4 million in the previous quarter and a GAAP net income of $2.8 million in the year-ago quarter.
Consensus analysts' expectations called for PLX to report sales of $29 million for the quarter, according to Yahoo Finance.