Broadcom Corp., seeking a return to growth as it shutters its loss-making mobile-phone modem business, predicted second-quarter sales that may equal analysts’ estimates helped by orders from phone makers for other kinds of chips.
Revenue will be about $2.1 billion, plus or minus $75 million, in the second quarter, the company said Tuesday in a statement. That compares with an average analyst estimate of $2.07 billion, according to data compiled by Bloomberg.
Broadcom is biggest maker of WiFi chips that provide short-range connections for mobile devices. It may be benefiting from orders from Apple Inc. its second-largest customer, and Samsung Electronics Co., its biggest, whose new high-end phones are battling for market leadership.
Broadcom shares rose 3 percent to $45.30 at 4:19 p.m. in extended trading following the announcement. They had earlier gained less than 1 percent to $43.98 at the close in New York.
Net income in the first quarter was $209 million, or 34 cents a share, compared with $165 million, or 28 cents, in the period a year earlier, the Irvine, California-based company said in a statement. Revenue was $2.06 billion.
Broadcom is shuttering its unit that makes modem chips for mobile phones. That’s reducing losses and expenses in a business that failed to gain significant market share from Qualcomm Inc.