Congrats to all the longs - again.
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Broadcom posts fivefold jump in profit
By Bloomberg News
Special to CNET News.com
October 14, 1999, 3:55 p.m. PT
IRVINE, California--Broadcom, a maker of semiconductors for cable modems and digital set-top boxes, said third-quarter profits more than quintupled on soaring sales of its chips for an increasing range of gear.
Net income rose to $27.2 million, or 23 cents a share, from $5.2 million, or 5 cents, in the year-earlier period. Excluding an acquisition-related charge of $4.1 million before taxes, or 3 cents a share after taxes, Broadcom had third-quarter profit from operations of 26 cents. Broadcom was expected to earn 20 cents a share, the average estimate of analysts polled by First Call.
Revenue more than doubled to $138.4 million from $52.5 million. Analysts expected revenue of about $126 million.
Broadcom shares have more than tripled in the last year on sales of its chips that run cable and networking equipment, driven by exploding use of the Internet for phone and video traffic.
Broadcom's billionaire founders, Henry T. Nicholas III and Henry Samueli, have bought five companies this year to expand its home networking and other product lines.
"They're in some of the best markets you can think of, and they're probably establishing the best position in each of those markets," said Clark Westmont, an analyst at Salomon Smith Barney, who rates Broadcom "outperform."
Broadcom shares fell 2.69 to 116.81 today, down from a high of 149.5 in July. The company released results after the close of U.S. markets.
Copyright 1999, Bloomberg L.P. All Rights Reserved. |
