Broadcom Boosts Fourth-Quarter Forecasts on NetworkingIan King
Broadcom Corp., a maker of communications chips used in Apple Inc.’s iPhone and iPad, said revenue in the current period will be higher than it had originally anticipated on improving networking revenue.
Fourth-quarter sales will be $2 billion to $2.05 billion, the Irvine, California-based company said in a statement today. In October the company had forecast revenue of $1.98 billion, plus or minus 3 percentage points, indicating a range of $1.92 billion to $2.03 billion.
The company is getting better-than-expected revenue in all of its businesses, especially infrastructure and networking, Broadcom said. Broadcom’s stock has tumbled this year on delays to the introduction of new mobile chips needed to help it better compete with Qualcomm Inc. in supplying components for smartphones.
Broadcom shares climbed 2.3 percent to $28.51 at the close in New York, leaving them down 14 percent this year.
Chief Executive Officer Scott McGregor is moving the company into the market for baseband chips used to connect phones to cellular networks. The company is also the biggest maker of short-range communications chips used in mobile devices and dominates in the market for processors that run television set-top boxes.