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Broadcom’s net slides; firm expects sales drop

From Reuters

Broadcom Corp. posted lower fourth-quarter profit Thursday as the maker of microchips for mobile phones and other devices felt the repercussions of a broader industry slowdown and booked costs related to stock awards.

The Irvine company said it expected sales in its current quarter to fall about 3% from the previous quarter.

Net income in the fourth quarter was $45.1 million, or 8 cents a share, compared with $186.7 million, or 32 cents, a year earlier, the company said.

It was Broadcom’s first regular quarterly earnings report since it concluded an internal investigation into how it accounted for stock option grants.

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Excluding charges related to the review of past stock awards, Broadcom earned 15 cents a share, the average analysts’ forecast according to Reuters Estimates.

Revenue rose 12.5% to $923.5 million, exceeding analysts’ forecast of $911.6 million.

Shares in Broadcom rose 1% to $34.03 in extended trading after the company released its results. The stock had closed up 17 cents at $33.67.


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