Broadcom Corp. (NASDAQ: BRCM) reported slight dip in fiscal fourth -quarter profits as the reasonable growth in revenue was offset by higher operating and R&D expenses; nevertheless, communication chipmaker’s lackluster outlook on fiscal first quarter revenue disappointed investors sending shares down in after-hours trading.
The Irvine, California-based Company also announced 10% increase in quarterly dividend.
For the current quarter, Broadcom, which manufactures chips used in products ranging from television set-top boxes to smartphones s, said that revenue will come in the range of $1.824 billion to $1.976 billion, while analysts’ expectation was for $2 billion.
The bearish outlook has fanned fears that smartphone market might be slowing down.
“Everything will be down roughly about to same as the midpoint of our guidance. Mobile and wireless might be a touch lower than that,” said CEO Scott McGregor to analysts in a conference call.
For the quarter (which stretched from October to December), the Company reported net income of $251 million or 43 cents a share compared to net profit of $254 million or 45 cents a share, in the same period of last year.
After excluding onetime items, adjusted earnings or non-GAAP earnings stood at 76 cents a share which was a tad higher than analysts’ consensus forecast. According to data compiled by FactSet Research, analysts, on average, were expecting adjusted earnings of 74 cents a share.
Revenue during the period climbed 14% to $2.08 billion, beating analysts’ forecast for $2.06 billion.
During the quarter, Broadcom’s operating and other expenses climbed 18% to nearly $1.82 billion while research and development cost jumped 23% in the same period.
The Company said that its board has approved a quarterly cash dividend of 11 cents a share, up from 10 cents a share, in the previous quarter. The dividend will be payable on March 4 to shareholders who were on record as of Feb. 15, the company said.
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Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.