Broadcom's 1Q net income more than doubles

Strong chip demand drives up Broadcom 1Q net income more than twofold

Associated Press

IRVINE, Calif. (AP) -- Communications chip maker Broadcom Corp. said Tuesday that its net income more than doubled in the first three months of the year, as strong demand for wireless baseband and connectivity chips led to a spike in revenue.

The latest results trumped Wall Street's expectations, sending the company's shares up more than 5 percent in after-market trading.

Broadcom reported net income of $191 million, or 33 cents per share, compared with $88 million, or 15 cents per share, in the first quarter of last year.

Excluding the impact of one-time costs, Broadcom made 65 cents per share.

Analysts' consensus forecast called for adjusted earnings of 56 cents per share, according to FactSet.

Revenue rose nearly 10 percent to $2.01 billion. Analysts expected $1.91 billion.

Management credited the quarter's revenue growth on better-than-expected demand for chips, noting it sees sequential growth ahead.

Broadcom shares ended regular trading up 38 cents at $32.98. The stock added $1.37, or 4.2 percent, to $34.35 in after-hours trading.

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