Broadcom Beats the Street after Thrilling CES Demonstrations

Broadcom reported financial results for the fourth quarter of 2012 yesterday, beating the Street’s estimates on all counts.

The networking semiconductor vendor reported earnings of $462 million or 76 cents per share versus a profit of $254 million in the same period 12 months ago – an 81.89 percent year over year increase. Analysts predicted net income of 73 cents per share.

Revenue was also up at $2.08 billion, 14 percent more than what the company reported for the fourth quarter of 2011 but 2.3 percent less than what it made in the previous three months.  In spite the decline, Broadcom managed to peddle ahead of Wall Street’s average estimate of $2.07 billion.

In 2012, the chipmaker made a record $8.01 billion in net revenue and reached an all time high cash flow of $1.93.  The board also approved a 10 percent increase in dividends – great news for investors.

“Broadcom delivered record revenue in each of our three business groups and record cash flow from operations in 2012, reflecting our continued market share growth and strong economics.” said Scott McGregor, Broadcom’s President and Chief Executive Officer. “Based upon these results, Broadcom’s Board of Directors today announced a ten percent increase in our dividend, consistent with our commitment to enhancing shareholder value.”

Broadcom credits its gains in the fourth quarter to increased demand for wireless technology.  At CES earlier this month LG revealed that several of its upcoming smart TV models will ship with Broadcom silicon that supports 5G, and a couple of other vendors made similar announcements.  Just a month earlier the chipmaker made headlines when it promised to reward top paying customers with bleeding edge mobile processors that are not yet available in any mobile device.

Maria Deutscher

Maria Deutscher

Maria Deutscher is a staff writer for SiliconANGLE covering all things enterprise and fresh. Her work takes her from the bowels of the corporate network up to the great free ranges of the open-source ecosystem and back on a daily basis, with the occasional pit stop in the world of end-users. She is especially passionate about cloud computing and data analytics, although she also has a soft spot for stories that diverge from the beaten track to provide a more unique perspective on the complexities of the industry.
Maria Deutscher


Join our mailing list to receive the latest news and updates from our team.

Submit a Comment

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

Share This

Share This

Share this post with your friends!