* Q3 Shr $0.38 vs year-ago $0.48
* Q3 Rev $2.13 bln vs Street view $2.09 bln
* Sees Q4 Rev $1.95bln-$2.10 bln vs Street view $2.11
* Shares rise slightly in late trade
By Sinead Carew
NEW YORK, Oct 23 Broadcom Corp on
Tuesday forecast a decline in revenue for the fourth quarter due
to challenging market conditions including weakness in its
infrastructure chip business.
While Broadcom's third-quarter revenue was better than Wall
Street expected, its weak outlook was not a big surprise as chip
makers such as Texas Instruments and Intel Corp
have posted weak results due to softness in the global economy.
Broadcom, a supplier of chips used in everything from
cellphones to TV set-top boxes, is often cushioned by the
diversity of its customer base in different industries and its
agreements to supply chips for Apple Inc's hugely
However it expects fourth-quarter 2012 revenue would drop to
a range of $1.95 billion to $2.1 billion, below Wall Street
expectations for $2.11 billion, according to Thomson Reuters
Company executives said during a call with analysts that the
decline is expected to stem primarily from weak demand for chips
used in computer data center infrastructure and communications
Shareholders shrugged off the news as the company slightly
beat Wall Street expectations for third quarter revenue and the
current quarter view was not as bad as some had feared.
"It's a matter of investors already having factored in a
very poor macro backdrop," said Williams Financial analyst Cody
Broadcom posted a profit of $220 million, or 38 cents per
share, compared with $270 million, or 48 cents per share, in the
Revenue rose to $2.13 billion from $1.96 billion, compared
with analysts' expectations for $2.09 billion, according to
Thomson Reuters I/B/E/S.
Broadcom said this was its first quarter with revenue above
$2 billion, and its first quarter with more than $1 billion of
revenue from wireless chips.
Its shares rose 14 cents in after-hours trading to $33.50
after closing down 6 cents at $33.36 in the regular Nasdaq