Broadcom tops Q1 estimates as profit tumbles
5/1/2012 6:44 PM EDT
SAN FRANCISCO—Fabless semiconductor provider Broadcom Corp. Tuesday (May 1) reported sales and profit that exceeded analysts' expectations, even as its net income in accordance with generally accepted accounting principles tumbled compared with the previous and year-ago quarters.
Broadcom (Irvine, Calif.) reported first quarter sales of $1.83 billion, up slightly from the previous quarter and compared to the first quarter of 2011. The company reported a net income of $88 million, down from net incomes of $254 million and $228 million in the previous and year-ago quarters, respectively.
Broadcom's sales for the quarter exceeded consensus analysts' expectations of $1.8 billion, according to Yahoo Finance. The company reported earnings of 65 cents per diluted share on a pro forma basis, excluding charges, exceeding analysts' expectations of 54 cents per share.
"Broadcom performed well in the first quarter, with revenue near the high end of the guided range and better-than-expected underlying profitability," said Scott McGregor, Broadcom's president and CEO, in a statement."We closed the NetLogic Microsystems transaction to expand our footprint in network infrastructure, extended our lead in 5G WiFi by beginning commercial shipments, and rounded out our PON portfolio with the acquisition of BroadLight to enable complete solutions for the fastest growing segment in broadband access."
In February, Broadcom announced it completed the $3.7 billion acquisition of NetLogic Microsystems Inc., a provider of networking chips. Last month the company announced it completed a $195 million deal to acquire Broadlight Inc., a provider of integrated networking and fiber access PON (passive optical network) processors.
For the second quarter, Broadcom said it expects sales to improve to between $1.9 billion and $2 billion, a sequential increase of 4 to 9 percent. Broadcom's second quarter sales target was in line with consensus analysts' expectations, which called for second quarter revenue of $1.97 billion, according to Yahoo Finance.