NEW YORK Dec 5 Broadcom Corp on
Wednesday boosted its forecast for fourth-quarter revenue to
the high end of its target range, citing slightly
better-than-expected sales in its mobile business, and its
shares rose 1 percent in late trade.
The chipmaker boosted its fourth-quarter revenue forecast to
$2 billion to $2.1 billion, from its previous range of $1.95
billion to $2.1 billion.
The company did not give a reason why wireless was better
than expected. Analysts had said ahead of a Dec. 6 analyst
meeting that they expected Broadcom to raise its guidance due to
expectations for demand for Apple Inc's iPhone and
Samsung Electronics Co Galaxy phones.
Broadcom said it now expects its fourth-quarter product
gross margin to be up slightly from the third quarter. Its
previous guidance had been for flat to slightly up from 48.8
percent in the third quarter.
It also said that GAAP spending on research and development
and selling, general and administrative expenses would be down
by $5 million to $15 million from its third quarter spend of
$774 million. The company had previous forecast spending flat to
up $15 million from the previous quarter.
The spending decline will be due to lower-than-expected
headcount costs driven by reduced incentive compensation and
tighter management of expenses and services, Broadcom said.
The company's shares rose almost 1 percent to $32.60 in late
trade after closing at $32.34 in the regular Nasdaq session.