UPDATE - Broadcom raises quarterly guidance slightly
Monday August 18, 6:30 pm ET
(Updates with more details, background, stock price)
SAN FRANCISCO, Aug 18 (Reuters) - Semiconductor designer Broadcom Corp. (NasdaqNM:BRCM - News) on Monday slightly raised its current quarter outlook, saying revenue will rise about 10 percent from the previous quarter, or about $415.7 million.
Last month, the Irvine, California-based company had said it expected sales for the third quarter of $400 million to $410 million compared with $377.9 million in the second quarter.
"Given the strength of bookings and shipments to date," the sales increase will be about 10 percent, William Ruehle, chief financial officer, said in a conference call with reporters and analysts.
Reuters Research analysts were, on average, expecting third-quarter revenue of $404.96 million.
For fiscal 2004, Ruehle said financial results would be in line with First Call analyst expectations of $1.84 billion in revenue and earnings of 64 cents per share, excluding special items.
"We affirm that even if we realize what we believe to be the worst case scenario of generating only $200 million for ServerWorks in 2004," the analysts' 2004 estimates are "reasonable and achievable," he said.
Meanwhile, there will be "modest" increases in operating expenses in marketing and engineering, Ruehle added.
The growth drivers will be the same as last quarter, which included chips for cable set-top boxes and modems and the direct broadcast satellite market, said Alan Ross, chief executive officer.
In July, the company posted a wider quarterly loss due to charges and said revenue rose a better-than-expected 46 percent on stronger sales for most of its products.
Shares of Broadcom closed at $22.85 on the Nasdaq, up 7.5 percent. They were up to $23.90 in after-hours trade. |
