Semiconductor firm Broadcom on Thursday reported quarterly earnings that beat Wall Street forecasts as demand for its networking chips and storage solutions from data centers offset weakness in its wireless business, Reuters reports.
Net income rose to US$3.72 billion in the second quarter ended May 6, from US$440 million a year earlier, as revenue jumped to US$5.01 billion from US$4.19 billion.
Excluding items, the company earned US$4.88 per share, topping average analyst expectations of US$4.76.
For the current quarter, the chipmaker reiterated a revenue forecast of US$5.05 billion, plus or minus US$75 million, in line with analysts’ estimates.
The company, which is based in San Jose, California, said it expects wireless revenue to be flat or slightly down in the third quarter, from the second quarter.
That is because growth in demand from a large North American smartphone customer will be offset by a decline in shipments to a Korean customer.
Most analysts believe the North American customer is Apple, which accounted for a fifth of Broadcom’s revenue last year, and the Korean customer is Samsung Electronics, Reuters noted.
However, Broadcom expects demand to remain healthy from cloud data centers and enterprise IT.
Broadcom, which was a US company until it was bought in 2016 by Singapore’s Avago, redomiciled in April, weeks after US President Donald Trump blocked its US$117 billion offer to buy Qualcomm on national security grounds.
Revenue from the company’s wired infrastructure business, which sells data center switching chips to customers such as Amazon and switching ICs to the likes of Cisco Systems, jumped 46 percent to US$2.30 billion in the fiscal second quarter.
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