Memory FAQs
 
Home
News
Products
Shop
Memory
Corporate
Contact
 

News
Industry News
Publications
CST News
Help/Support
Member Area
Tester Brochure
Demo Library
Software
Tester FAQs

biology medicine news product technology definition

Tuesday, September 18, 2018
Memory Industry News
Email ArticlePrinter Format PreviousNext

Broadcom predicts a good 4th quarter


Monday, September 10, 2018

Broadcom Inc (AVGO.O) on Thursday forecast current-quarter revenue largely above estimates on higher demand for components that power data centers, while the launch of Apple Inc’s new iPhones is expected to bolster its wireless business.

Shares of Broadcom rose 4 percent to $224.90 in extended trading after the chipmaker also reported third-quarter profit that topped analysts’ estimates.

Revenue from enterprise storage business jumped 70 percent in the reported quarter as the acquisition of Brocade helped drive sales gains at the unit.

Its wireless business, which makes chips for Wi-Fi, Bluetooth, and GPS connectivity, reported flat revenue, while its wired infrastructure unit, which makes components used in telecommunication networks, posted a 4 percent rise from a year earlier.

“More than half our consolidated revenue ... is benefiting from strong cloud and enterprise data center spending,” Chief Executive Officer Hock Tan said on a post-earnings call with analysts.

“This, coupled with a seasonal uptick in wireless, will drive our forecast revenue in the fourth quarter.”

The company expects a ramp at its North American customer - which analysts identified as Apple - to drive a 25 percent rise in wireless revenue from the previous quarter, although it may be down in single-digit percentage compared with a year earlier.

Apple (AAPL.O) is set to unveil its new iPhones next week.

Tan, who has transformed Broadcom into a $100 billion behemoth through a series of acquisitions, surprised Wall Street in July with his move to acquire software maker CA Technologies for $19 billion.

Explaining his rationale behind the CA acquisition, Tan said he planned to target the company’s enterprise customers with Broadcom’s offerings including server and storage connectivity products.

The CA deal comes after U.S. President Donald Trump blocked Broadcom’s $117 billion offer to buy Qualcomm Inc (QCOM.O) on national security grounds.

Broadcom forecast current-quarter revenue of about $5.40 billion, plus or minus $75 million. Analysts on average were expecting revenue of $5.35 billion, according to Thomson Reuters I/B/E/S.

Net income attributable to common stock rose to $1.2 billion, or $2.71 per share, in the quarter ended Aug. 5 from $481 million, or $1.14 per share, a year earlier.

Excluding items, the company earned $4.98 per share.

Net revenue rose to $5.06 billion from $4.46 billion.

Analysts on average were expecting earnings of $4.83 per share on revenue of $5.07 billion.

By: DocMemory
Copyright © 2018 CST, Inc. All Rights Reserved

Email ArticlePrinter Format PreviousNext
Latest Industry News
Taiwan foundry sales up 6,2% in quarter9/18/2018
Amazon admitted employees leaking company secret9/18/2018
Nextlink received $281 million FCC gran to develope Internet for rural areas9/18/2018
Startup Wasabi Technologies wants to challenge Amazon in cloud services9/17/2018
Adesto Technologies said future of automotive electronics goes with embedded ReRAM9/17/2018
Next phase of semiconductor growth to be on IoT, not Smartphone9/17/2018
Facebook assembled an ASIC team to design its own chip9/17/2018
According to Amazon's latest job posts, DC is likely chosen for HQ29/14/2018
Nvidia newest gaming GPU packs with intelligence for AI applications9/14/2018
Improved biometric identification chips catch on9/14/2018

CST Inc. Memory Tester DDR Tester
Copyright © 1994 - 2018 CST, Inc. All Rights Reserved