Join        Login             Stock Quote

Broadcom (BRCM) Drops Amid Lower Q1 Earnings

 May 01, 2012 05:18 PM

(By Balaseshan) Broadcom Corp. (NASDAQ: BRCM), a maker of chips for products ranging from cellphones to network equipment, reported a decline in first quarter earnings due to higher acquisition related charges. Despite adjusted earnings and revenue exceeding Street's expectations, its shares fell 0.97% in aftermarket.

Earnings for the first quarter were $88 million or $0.15 per share, down from $228 million or $0.40 per share last year. Adjusted earnings declined to $387 million or $0.65 per share from $407 million or $0.68 per share.

Revenue increased to $1.827 billion from $1.816 billion. Analysts had expected a profit of $0.54 per share on revenue of $1.80 billion.

[Related -Broadcom Corporation (NASDAQ:BRCM): Solid Core Biz, LTE Progress Could Aid 2014 Results]

Product revenue rose to $1.77 billion from $1.75 billion, while licensing revenue fell to $5 million from $12 million. Income from Qualcomm (NASDAQ:QCOM) Agreement remained unchanged from last year's $52 million.

Revenue from Broadband Communications declined to $494 million from $490 million, while revenue from Mobile & Wireless rose to $875 million from $854 million driven by 3G baseband and Wi-Fi combos. Infrastructure & Networking revenue fell to $406 million from $419 million, while other revenue decreased to $52 million from $53 million.

Gross margin declined to 48.1% from 49.0%, due to about $45 million increase in acquisition-related charges. Adjusted gross margin increased to 52.0% from 50.5%, driven by favorable product costs and lower E&O.

[Related -Is Intel (INTC) About To Buy One Of These Companies?]

Looking ahead into the second quarter, the company expects revenue of about $1.9 billion to $2.0 billion, while Street predicts $1.97 billion. Gross margin is expected to be down from last quarter due to anticipated sequential increase in acquisition-related charges, while adjusted gross margin is predicted to be roughly flat from last quarter.

The company anticipates research & development and selling, general, and administrative expenses of about $30 million to $45 million for the second quarter, and adjusted research & development and selling, general, and administrative expenses of $35 million to $50 million.

BRCM closed Tuesday's regular session up 0.29% at $36.71. The stock has been trading between $27.59 and $39.66 for the past 52 weeks.

iOnTheMarket Premium


Post Comment -- Login is required to post message
Alert for new comments:
Your email:
Your Website:

rss feed

Latest Stories

article imageInitial Jobless Claims Rose Unexpectedly

Claims unexpectedly rose in the latest report through last weekend to breach 300,000 for the first time read on...

article imageAll Quiet on the Record High Front

What can we glean from the media’s lack of attention to the market’s recent record read on...

article imageThe Chip Maker Short Sellers Should Be Watching

Investing in semiconductor stocks is always tricky. Industry cycles can lead to bumps in the road for the read on...

article imageChicago Fed: US Economic Growth Slowed In October

The pace of US growth slowed more than expected in October, according to this morning’s update of the read on...

Popular Articles

Daily Sector Scan
Partner Center

Related Articles:

Is This The Start Of A Correction?
More Articles on: Computer and Technology

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.