GARDEN GROVE, Calif.—Fabless chip vendor Broadcom Corp. Tuesday (Oct. 23) reported quarterly revenue of more than $2 billion for the first time, defying difficult macroeconomic conditions that have plagued rivals to post sales increases across all of its business lines.
"Despite a challenging economic environment, we're benefiting from multiple attractive secular themes, including increasing Wi-Fi attach rates, exponential growth in network traffic and strong adoption of high-definition cable and satellite solutions in emerging markets," said Scott McGregor, Broadcom's president and CEO, in a conference call with analysts following the quarterly report.
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Broadcom becomes just the second fabless company to achieve $2 billion in sales in a single quarter, after rival Qualcomm Inc.
Broadcom's better than expected quarter sales stand in contrast to those of several other chip vendors that whose results were hurt by macroeconomic conditions and sagging PC sales, including Intel Corp., Texas Instruments Inc., Advanced Micro Devices Inc. and Marvell Technology Group Ltd.
McGregor said Broadcom (Irvine, Calif.) is riding a strong product roadmap and design win momentum despite the macroeconomic headwinds. "While we may see some variation in our business in the short term due to macroeconomic conditions, Broadcom is extremely well positioned for the future," McGregor said.
McGregor said the third quarter also marked the first time that the company generated more than $1 billion in sales from its mobile and wireless business segment.