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Chips for TV Devices Boost Broadcom Sales

October 20, 2006|From Bloomberg News

Broadcom Corp., a Irvine-based semiconductor maker, said third-quarter sales increased 30% as the company sold more chips for TV set-top boxes. Sales rose to $902.6 million from $695 million a year earlier.

Broadcom didn't report net income because of an investigation into its stock option grants.

The company supplies 20 types of chips for set-top boxes, wireless products and modems that provide fast Internet access.

Sales topped the $900.2-million estimate of analysts surveyed by Thomson Financial. Broadcom on July 20 forecast third-quarter sales of $900 million.

Revenue this quarter will rise about 1% from the period just ended, acting Chief Financial Officer Bruce Kiddoo said. That indicates fourth-quarter sales of $911.6 million, less than the $944.3-million average estimate of analysts in a survey by Thomson Financial and an increase of 11% from $820.6 million a year earlier.

Broadcom shares rose 2.1% in extended trading after results came out. The stock closed up 48 cents at $28.97 during the regular session.

The company hasn't reported net income for two straight quarters. On Sept. 8, Broadcom estimated that correcting its stock option accounting would result in costs of more than $1.5 billion and the restatement of results for eight years. Chief Financial Officer William J. Ruehle retired Sept. 19.

Broadcom said it didn't expect to file a quarterly report with regulators by the Nov. 9 deadline.

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