Broadcom reports jump in Q2 profit on chip demand
IRVINE, Calif. (AP) – Chip maker Broadcom Corp. booked a jump in second-quarter earnings Tuesday, helped by improving demand for semiconductors that help power smartphones and other wireless products.
The company reported net income of $278.3 million, or 52 cents per share, up from $13.4 million, or 3 cents per share, a year ago.
Stripping out one-time items, Broadcom said it would have earned 66 cents per share. On that basis, the results beat the 62-cent average estimate of analysts surveyed by Thomson Reuters.
Revenue jumped more than 50 percent to $1.6 billion, roughly matching expectations. It marked a nearly 10 percent rise from the first quarter.
"We anticipate that increasing demand for communications solutions and market share gains will drive strong revenue growth for Broadcom in the third quarter," said President and CEO Scott McGregor.
Broadcom shares edged up 45 cents to $37.98 in extended trading after closing the regular session down 68 cents at $37.53.