Broadcom sees revenue drop this quarter

Reuters News
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Posted: Oct 25, 2011 4:34 PM
Broadcom sees revenue drop this quarter

(Reuters) - Broadcom Corp warned that its revenue would likely decline this quarter from the third quarter due to "industry softness".

Shares in the maker of chips for products ranging from cellphones to television set-top boxes fell about 4 percent after it forecast fourth quarter revenue of $1.70 billion to $1.8 billion compared with Wall Street expectations for revenue of $2.0 billion according to Thomson Reuters I/B/E/S.

"While our outlook reflects potential industry softness, our long-term strategy is to continue to outgrow the overall semiconductor market with product innovations that drive new market growth and value," Chief Executive Scott McGregor said in a statement.

Broadcom third quarter revenue rose to $1.957 billion from $1.81 billion a year ago and compared with Wall St expectations for $1.952 billion.

Broadcom also forecast fourth quarter gross profit margins flat to slightly down from the third quarter.

It reported a third quarter profit of $270 million, or 48 cents per share compared with $328 million, or 60 cents per share in the same quarter the year before.

Broadcom shares fell to $34.30 in late trade after closing down four percent to $35.80 on Nasdaq.

(Reporting by Sinead Carew; editing by Tim Dobbyn)