Chipmaker Broadcom's first-quarter profit, revenue beat Street

By Noel Randewich

SAN FRANCISCO (Reuters) - Chipmaker Broadcom posted first-quarter profit and revenue above expectations and its revenue forecast also topped estimates, despite investors' worries about slower growth at key customer Apple .

Broadcom, whose chips are used in products ranging from television set-top boxes to Apple's iPhone, posted first-quarter revenue of $2.01 billion, up 9.7 percent from the year-earlier period.

With investors concerned Apple's expansion may be losing steam, shares of Broadcom have fallen about 1 percent so far in 2013, compared to a 12 percent increase in the Philadelphia Semiconductor index.

Broadcom and its competitors are believed to be selling more wireless chips to Samsung Electronics , Apple's main rival in smartphones and tablets.

"If this is Samsung, it means the smartphone story is not dead," Bernstein analyst Stacy Rasgon said of Broadcom's results. "You may just be switching dominant players at the moment."

Broadcom said revenue in the second quarter would be $2.10 billion, plus or minus 4 percent.

Analysts, on average, had expected first-quarter revenue of $1.913 billion and second-quarter revenue of $2.050 billion, according to Thomson Reuters I/B/E/S.

Broadcom reported a net profit of $191 million, or 33 cents per share, compared with a net profit of $88 million, or 15 cents per share, in the year-ago quarter. Adjusted earnings per share were 65 cents, beating the 56 cents expected by analysts.

Shares of Broadcom rose 4.76 percent in extended trade after closing up 1.17 percent at $32.98.

(Reporting by Noel Randewich; Editing by Dale Hudson)

Source: http://news.yahoo.com/chipmaker-broadcoms-1st-quarter-profit-revenue-beat-street-202811968--sector.html

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