Chipmaker Avago forecasts sequential revenue decline

Tue Feb 25, 2014 4:35pm EST

Feb 25 (Reuters) - Chipmaker Avago Technologies Limited said it expects second-quarter sales to decline 3-6 percent from the first quarter as it lost revenue from a smartphone manufacturer.

The company, which designs and develops analog semiconductors, said in a statement the revenue decline was due to annual product transition at a "major smartphone OEM customer."

Avago's customers include Apple Inc, Samsung Electronics Co Ltd, LG Electronics Inc and Huawei Technologies Co Ltd.

The company's net income rose to $134 million, or 53 cents per share, in the quarter ended Feb. 2, from $125 million, or 50 cents per share, a year earlier.

Excluding items, the company earned 84 cents per share.

Revenue rose 23 percent to $709 million.

Analysts on average had expected earnings of 78 cents per share on revenue of $705.3 million, according to Thomson Reuters I/B/E/S.

Shares of the company were little changed in extended trading after closing at $59 on the Nasdaq on Tuesday.