NEW YORK (Reuters) - Broadcom Corp BRCM.O 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 December 6 analyst meeting that they expected Broadcom to raise its guidance due to expectations for demand for Apple Inc’s (AAPL.O) iPhone and Samsung Electronics Co (005930.KS) 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.
Reporting By Sinead Carew; Editing by David Gregorio