By Maria Armental
Broadcom Corp. on Tuesday boosted its dividend, raised the low
end of its projection for fourth-quarter revenue and unveiled
changes to its compensation plan as part of a move to enhance its
corporate governance.
Chip maker Broadcom is well known in the handheld-device market,
as it makes chips for about half the world's tablets and
smartphones, but the company has also sought to expand its share of
the network-processor market.
The company raised the low end of its revenue forecast by $75
million, putting the range at $2.075 billion to $2.15 billion. It
also raised its quarterly dividend by two cents to 14 cents a
share, a 17% jump, and authorized $1 billion to buy back shares in
2015. The company's market value is about $23 billion.
Meanwhile, the Silicon Valley company, which previously reviewed
its executive pay every three years, said it would begin an annual
say-on-pay vote next year. Broadcom also intends to shift its
compensation to emphasize performance-based equity.
Among its recent restructuring moves, Broadcom said in July that
about 2,500 employees would lose their jobs as it unveiled plans to
wind down its operation that made baseband chips for mobile
devices. The cuts represented about 20% of its head count.
Shares inched up to $43 in recent after-hours trading. Through
Tuesday's closing, the company's stock was up 44% for the year. It
set a 52-week-high of $44.33 on Monday.
Write to Maria Armental at maria.armental@wsj.com
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