Broadcom posts mixed quarterly report, stock gains

Reuters News
Posted: Jul 22, 2014 4:28 PM

By Noel Randewich

SAN FRANCISCO (Reuters) - Broadcom posted better-than-expected adjusted second-quarter earnings on Tuesday that pushed the chipmaker's stock higher as it plans to exit the fiercely competitive cellular baseband business.

Broadcom, a leader in connectivity chips with features like Wi-Fi and Bluetooth, reported second-quarter revenue of $2.04 billion, down 2.3 percent from the year-ago period. It said revenue in the third quarter would be between $2.10 billion and $2.25 billion. The midpoint of its forecast is $2.175 billion.

Analysts on average had expected second-quarter revenue of $2.05 billion and third-quarter revenue of $2.19 billion, according to Thomson Reuters I/B/E/S.

In the second quarter, Broadcom had a net loss of $1 million, or 0 cents a share, compared to a net loss of $251 million, or 43 cents a share, last year. Non-GAAP earnings per share were 65 cents in the second quarter. Analysts on average expected 61 cents.

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Broadcom's stock rose 3.23 percent in extended trading after closing up 0.31 percent at $38.75 in regular Nasdaq trade.

(Reporting by Noel Randewich; Editing by Meredith Mazzilli)