Avago Revenue Rises 37%
August 26 2015 - 5:30PM
Dow Jones News
Avago Technologies Ltd. said revenue rose 37% in its latest
quarter, led by the chip maker's wireless communications and
enterprise storage segments.
For the quarter ended Aug. 2, revenue increased to $1.74 billion
from $1.27 billion a year earlier. Net revenue from continuing
operations rose 36% to $1.75 billion, compared with expectations
for revenue of $1.715 billion to 1.765 billion.
Wireless communications segment revenue soared 69% and
enterprise storage revenue climbed 46%. Earlier this year, Avago
acquired networking company Emulex Corp. for $606 million in a deal
it expected would fit well with its enterprise storage
portfolio.
In prepared remarks Wednesday, Chief Executive Hock Tan said the
company expects sequential growth. "Led by strong seasonal growth
in our wireless segment, and stable performance from our enterprise
storage, wired and industrial segments, we expect solid sequential
revenue growth to sustain in the fourth quarter," Mr. Tan said.
For the quarter ending Nov. 1, Avago forecast revenue of $1.825
billion to $1.875 billion, while analysts polled by Thomson Reuters
expected revenue of $1.86 billion.
The company in May agreed to acquire rival wireless-chip maker
Broadcom Corp. in a cash-and-stock deal initially valued at $37
billion. The transaction would meld two companies with
complementary sales of communications chips, including processors
that handle different chores in smartphones from Apple Inc. and
Samsung Electronics Co.
After the deal closes, which is expected to occur by early next
year, the company will adopt the name Broadcom Ltd. and continue to
be led by Avago's Mr. Tan.
Overall, Avago reported a profit of $240 million, or 84 cents a
share, compared with a year-earlier loss of $164 million, or 65
cents a share. Excluding acquisition and restructuring-related
impacts and other items, per-share earnings from continuing
operations rose to $2.24 from $1.26.
Analysts polled by Thomson Reuters expected per-share profit of
$2.14.
Write to Tess Stynes at tess.stynes@wsj.com
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(END) Dow Jones Newswires
August 26, 2015 17:15 ET (21:15 GMT)
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