SAN FRANCISCO -- Broadcom Corp. reported modest declines in revenue but an uptick in profit in a quarter generally in line with expectations.
Broadcom reported net revenue for the fourth quarter of 2013 at $2.06 billion, a decrease of 3.8% from Q3 and a decrease of 0.8% from Q4 2012. The company recorded net revenue for 2013 as $8.31 billion, a 3.7% increase over 2012.
"Looking into 2014, we are building momentum in LTE, setting the stage for Ultra HD, and powering next generation service provider and data center networks," said chief executive Scott McGregor in a release.
Revenue and gross margins in Broadcom’s broadband communications sector decreased by 3% sequentially to $548 million while infrastructure and networking increased 2% to $576 million in a stronger than expected gain. McGregor attributed the later to Ethernet switch sales in enterprise and service provider markets, and added that both broadband and infrastructure will trend down in Q1 2014.
Unlike 2013, which showed relatively flat connectivity business, McGregor expects muted growth in the first half of 2014 and “very solid” growth in the second half of the year.
Operators have shown strong interest in the HEVC codec and are pushing toward Ultra HD resolution products in advance of the World Cup and Olympics. At the same time, decreasing UHD TV prices are driving the market, he said.
McGregor said Broadcom’s datacenter business has grown more than 50% year over year and now generates roughly one third of all infrastructure sales. The trend is expected to continue in Q1 with the Trident II switch ramp.
Broadcom’s multicore processor business is also expected to grow in Q1, primarily driven by LTE basestation deployments in China and the ramp-up of 40nm XLP products.
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