Broadcom’s Q2 profit quadruples (US)Broadcom Corp., announced its second-quarter profit nearly quadrupled, beating Wall Street’s expectations. It’s feared, even as revenues rise, that the company’s profits margins will slip in the third quarter.
The Irvine, Calif.-based company is in a healthy market, as rising online traffic and demand for Internet video are driving demand for Broadcom’s chips, which are used in cable set-top boxes, communications equipment and home networking gear.
The Irvine’s demand for Internet video are driving demand for Broadcom’s chips, which was reflected in Broadcom’s second-quarter net income of $134.8 million, or 25 cents per share, a dramatic improvement over the $34.3 million, or 6 cents a share, that Broadcom made in the year-ago period.
On a conference call with analysts, executives cautioned that Broadcom’s gross profit margin would likely decline in the third quarter. That overshadowed upbeat sales guidance of $1.25 billion to $1.30 billion.
Broadcom’s sales were higher than expected. Broadcom had $1.2 billion in revenue in the three months ended June 30, a 34 percent increase over last year’s $897.9 million, and about $100 million above analyst estimates.
