Broadcom posts 1st-quarter profit on strong chip sales, guides higher for 2nd-quarter revenue

Broadcom posts 1Q profit on strong chip sales

IRVINE, Calif. — Chip maker Broadcom Corp. said Tuesday that strong sales and cost controls helped the company return to a first-quarter profit from a year-ago loss.

Broadcom also issued revenue guidance for the current quarter above Wall Street’s expectations, sending shares higher in after-hours trading.

Broadcom said earnings for the January-March quarter totaled $210.2 million, or 40 cents per share. Broadcom reported a net loss of $91.9 million, or 19 cents per share, in the same period last year.

Excluding stock-based compensation and other items, Broadcom said it earned 57 cents per share in the latest period — easily beating the average estimate of 47 cents per share forecast by analysts surveyed by Thomson Reuters.

Revenue jumped 71 percent to $1.46 billion from $853.4 million in the year-ago quarter on improved demand, also above the $1.4 billion analysts were expecting. Revenue from Broadcom’s own products rose 70 percent to $1.4 billion.

For the current quarter, which ends June 30, Broadcom said it expects revenue of $1.5 billion to $1.6 billion on rising global demand. Analysts are currently looking for $1.4 billion, on average.

Broadcom’s stock gained 58 cents to $35.33 in extended trading. Earlier, shares fell $1.21, or 3.4 percent, to close at $34.82.