* Q2 revenue in line with Street
* Forecasts Q3 revenue between $1.9 bln and $2 bln
* EPS beats estimates
* Stock jumps after hours
(Rewrites first paragraph, adds quote, details)
By Noel Randewich
SAN FRANCISCO, July 25 Wireless chipmaker
Broadcom BRCM.O gave a rosier-than-expected outlook for its
revenues, dispelling worries about a tepid economy and high
inventories and giving a hefty boost to its shares.
Supply chain hiccups caused by Japan's earthquake last
March are largely over and Broadcom expects to expand its home,
wireless and infrastructure businesses during the current
quarter, executives said.
"We are seeing increasing attach rates for our wireless
connectivity devices in phones, tablets and a number of
connected home and consumer electronic products," Chief
Executive Officer Scott McGregor told analysts on a conference
Weakness at Nokia NOK1V.HE and growing competition from
Qualcomm (QCOM.O) in Wi-Fi chips had been a concern for some
A dreary economy has also weakened sentiment for chipmakers
recently, with Silicon Laboratories' (SLAB.O) shares slumping
13 percent on Monday after its earnings report fell short of
Texas Instruments TXN.N, warning of economic
uncertainties, forecast only modest sequential growth in the
current quarter. [nN1E76O15C]
"It's very much a relief," said Williams Financial Group
analyst Cody Acree. "Broadcom's obviously not giving us any
indication they're seeing a slowdown. They're in so many
markets if there was an issue, they'd probably be in the middle
Broadcom, which makes Bluetooth and other wireless chips
for phones, tablets, modems and game consoles, forecast
third-quarter revenue between $1.9 billion and $2 billion.
Analysts had expected $1.930 billion, according to Thomson
Broadcom said its second-quarter revenue was $1.8 billion,
up 12 percent, in line with the $1.805 billion expected on
average by analysts.
Earnings were $175 million, or 31 cents per share, compared
with $278 million, or 52 cents per share, in the same quarter
the year before.
Non-GAAP EPS for the quarter was 72 cents, higher than the
63 cents expected by analysts.
Shares of Broadcom were up 8.13 percent at $37.75 in
extended trade after closing down 1.58 percent.
(Reporting by Noel Randewich, editing by Bernard Orr and
(Additional reporting by Sinead Carew in New York)