Broadcom 1Q net income drops 14 percent

Broadcom 1st-quarter net income falls, but adjusted income and revenue exceed estimates

Associated Press

NEW YORK (AP) -- Communications chip maker Broadcom said Thursday that its net income fell 14 percent in the first quarter, but its results surpassed Wall Street expectations.

Broadcom said its revenue also declined from a year ago. However it said its broadband and infrastructure businesses performed well, and profit margins were better than expected.

Broadcom Corp. said its net income slid to $165 million, or 28 cents per share, from $191 million, or 33 cents per share.

The Irvine, Calif., company said that when one-time costs are excluded, earnings dropped to 51 cents per share from 65 cents per share.

Revenue dipped 1 percent, to $1.98 billion from $2.01 billion.

FactSet says analysts expected Broadcom to report net income of 45 cents per share with $1.96 billion in revenue.

The company predicted that revenue for the current quarter would be $2 billion to $2.1 billion. Analysts forecast $2.07 billion.

Shares slipped 2 percent to $30.50 in after-hours trading.

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