Broadcom Shares Rise With Earnings

Broadcom Corp. shares rose 12% Wednesday after the maker of semiconductors for television set-top boxes and cable modems said fourth-quarter earnings rose fivefold, beating analysts’ estimates.

Broadcom shares climbed $15.50 to $145 in trading of 2.64 million shares, almost four times the three-month daily average.

The Irvine-based company said its profit rose because of across-the-board sales increases and significant growth in sales of its set-top-box chips. Set-top boxes unscramble cable and satellite signals for viewers, with advanced digital boxes featuring such new services as more channels, phone service and high-speed Internet access.

“We’re seeing our strategy of increasing the silicon content in those boxes really playing out,” Broadcom Chief Executive Henry Nicholas III said.

Broadcom reported late Tuesday that net income rose to $12.8 million, or 26 cents a share, from $2.5 million, or 6 cents, a year earlier. It was expected to earn 20 cents, according to analysts polled by First Call Corp.