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Earnings Roundup / Broadcom

Profit drops 49%; sales to remain flat

October 23, 2009|Times Wire Reports

Broadcom Corp. said Thursday that third-quarter profit fell 49% and predicted that fourth-quarter sales would be little changed from the previous period, sending the stock down in extended trading.

"People were expecting stronger guidance," said Daniel Amir, an analyst at Lazard Capital Markets in San Francisco.

Third-quarter net income fell to $84.6 million, or 16 cents a share, from $164.9 million, or 31 cents, a year earlier, Irvine-based Broadcom said. Sales slipped 3.4% to $1.25 billion.

The company was expected to report a profit of 10 cents a share on revenue of $1.16 billion, according to the average estimate of analysts in a Bloomberg survey.

Excluding one-time charges, Broadcom earned a total of 40 cents a share in the latest quarter, which did top the average estimate of 33 cents a share from analysts surveyed by Thomson Reuters.

Broadcom followed fellow chip makers Intel Corp. and Texas Instruments Inc. in beating analysts' predictions for the third quarter. What disappointed investors was Broadcom's failure to match rival companies' predictions for the fourth quarter, which also topped analysts' estimates.

Broadcom fell $2.61, or 8.5%, to $28.12 in extended trading. The shares rose 42 cents to $30.73 in regular trading.

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