DOW JONES NEWSWIRES
Broadcom Corp.'s (BRCM) fourth-quarter profit slipped 4.5%,
failing to match the company's explosive year-ago earnings growth,
though the chip maker's top line fell less than expected.
The company also said it will boost its quarterly dividend 11%
to 10 cents a share, signaling its desire to satisfy investors
during a challenging time for the broader semiconductor sector.
Shares rose 2.7% to $35.26 after hours on the
stronger-than-expected core results. The stock was off 24% over the
past year through Tuesday's close.
Broadcom's earnings have varied over the past year along with
many of its customers' budgets. The company in October issued a
pessimistic revenue forecast, citing macroeconomic concerns that
had forced some customers to reduce inventory levels, but it later
provided more positive guidance, suggesting its top line had not
declined as much as previously feared.
Broadcom benefits from its relationship with a wide range of
electronics manufacturers, including iPhone maker Apple Inc.
(AAPL)and competing smartphone maker Samsung Electronics Co.
(005930.SE, SSNHY). Hot-selling mobile phones are a bright spot in
the semiconductor industry because of consumers' unabated demand
for the latest gadgets.
The company has also moved to equip itself for future demand
with a $3.7 billion offer for NetLogic Microsystems Inc. (NETL), a
maker of network-focused processors, and its own line of
high-bandwidth WiFi devices.
Broadcom posted a profit of $254 million, or 45 cents a share,
down from $266 million, or 47 cents a share, a year earlier.
Excluding stock-based compensations, settlement costs and other
items, earnings fell to 68 cents from 83 cents. Analysts polled by
Thomson Reuters were expecting 65 cents.
Revenue slipped 6.4% to $1.82 billion. The company's most recent
December forecast called for about $1.8 billion.
Gross product margin edged down to 49.3% from 49.4%.
The chip maker forecast current-quarter revenue between $1.7
billion and $1.8 billion, bracketing analysts' average projection
of $1.73 billion.
-By Drew FitzGerald, Dow Jones Newswires; 212-416-2909;
Andrew.FitzGerald@dowjones.com