Martin H. Simon | Bloomberg | Getty Images
Hock Tan, chief executive officer of Broadcom
“This, coupled with a seasonal uptick in wireless, will drive our forecast revenue in the fourth quarter.”
The company expects a ramp at its North American customer — which analysts identified as Apple — to drive a 25 percent rise in wireless revenue from the previous quarter, although it may be down in single-digit percentage compared with a year earlier.
Apple is set to unveil its new iPhones next week.
Tan, who has transformed Broadcom into a $100 billion behemoth through a series of acquisitions, surprised Wall Street in July with his move to acquire software maker CA Technologies for $19 billion.
Explaining his rationale behind the CA acquisition, Tan said he planned to target the company’s enterprise customers with Broadcom’s offerings including server and storage connectivity products.
The CA deal comes after U.S. President Donald Trump blocked Broadcom’s $117 billion offer to buy Qualcomm on national security grounds.
Broadcom forecast current-quarter revenue of about $5.40 billion, plus or minus $75 million. Analysts on average were expecting revenue of $5.35 billion, according to Thomson Reuters I/B/E/S.
Net income attributable to common stock rose to $1.2 billion, or $2.71 per share, in the quarter ended Aug. 5 from $481 million, or $1.14 per share, a year earlier.
Excluding items, the company earned $4.98 per share.
Net revenue rose to $5.06 billion from $4.46 billion.
Analysts on average were expecting earnings of $4.83 per share on revenue of $5.07 billion.
Be the first to comment