Broadcom (NASDAQ: BRCM) shares are flat after the company reported mixed second quarter results.
Revenue missed Wall Street’s expectations by 0.5 percent at $2.04 billion versus $2.05 billion. Sales are down 2.3 percent from the same quarter last year. Part of the decrease in revenue is due to expiration of a deal with Qualcomm.
Earnings topped the analyst consensus by 6.6 percent. Broadcom’s most significant cost savings was impairment of assets; only $165 million was spent versus $501 million in the second quarter of 2013.
"We recently made the difficult, but prudent decision to wind down our cellular baseband business and focus on the Broadband, Connectivity and Infrastructure markets. As a result, we will be a stronger company, as gross margins, profitability and cash flows will noticeably improve," said CEO Scott McGregor.
Shares of Broadcom last traded hands at $39.16.
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