From The Wall Street Urinal:
The Wall Street Journal -- July 22, 1998 Technology:
Broadcom's Earnings Of $7.7 Million Exceed Analyst Expectations
IRVINE, Calif. -- Broadcom Corp., a designer of electronic chips for
high-speed computer communications, reported second-quarter profit and revenue above analysts' expectations after its stock closed sharply higher.
The company said net income in the latest quarter totaled $7.7 million, or 16 cents a diluted share, compared with a year-earlier net loss of $1.1 million, or four cents a share. Revenue soared about 88% to $45.2 million from $5.4 million a year earlier. Profit in the second quarter beat analysts' estimates of 13 cents a share, as tracked by First Call Corp.
Broadcom stock jumped 6.5%, or $4.50, to $73.50 in Nasdaq Stock
Market trading. However, financial results were announced after the market closed.
Broadcom's latest-quarter results reflected strong demand for both
integrated circuits for digital set-top boxes used with televisions and higher-speed, computernetworking links, said Henry T. Nicholas III, president and chief executive officer.
Separately, Broadcom said that, effective Aug. 4, it will release from lockup about 850,000 Class B common shares, freeing the holders to sell those shares, at which time they will automatically convert to publicly traded Class A shares. Mr. Nicholas said the release applied only to shares held by most Broadcom employees, not to company officers.
Results per share were calculated on the basis of 47.9 million weighted average shares outstanding in the latest quarter, compared with 26.1 million a year earlier. Four million shares of Class A common stock were sold this spring in an initial public offering at $24 each. |
