Denver, CO – (Stocksntrade) – 05/20/2014 – Broadcom Corporation (NASDAQ:BRCM) recently posted its first quarter FY2014 results.
Broadcom declares dividend
Broadcom declared a quarterly cash dividend of $0.12 per share for its common stock shareholder. The dividend is payable on June 16, 2014. Both Class A and Class B common stockholders will receive the dividend.
Modest first-quarter results
Broadcom posted modest first-quarter results. Helped by better-than-expected gross margin and strict cost-cutting measures, the company performed fine on the first quarter of FY2014.
GAAP net income for the quarter was $165 million or $0.28 per share. In 1Q2013, the net income was $191 million or $0.33. Lower revenues resulted in a decrease in earnings compared to the last year.
The GAAP earnings were higher than the Zacks Consensus Estimate by three cents.
Non-GAAP net income in the 1Q2014 was $318 million for $0.51 per share. Non-GAAP net income in 1Q2013 was $400 million or $0.65 per share.
Broadcom Corporation (NASDAQ:BRCM) received $1,984 million as revenues during 1Q2014, which was 1% lower than the previous year. However, the revenues were higher than the Zacks Consensus Estimate, which estimated it at $1,962 million.
Based on end markets, the revenues of Broadband went up 2% to reach the figure of $559 million. The higher number happened due to more than expected sales of the set-top box and modem solution.
Revenues of Mobile and wireless segment reduced 10% to reach a figure of $846 million. The infrastructure and networking segment saw a jump of 35% in revenue compared to the last year, which reached $579 million figure.
For the second quarter FY2014, total revenue expected is in the range of $2.0 billion to $2.1 billion. The gross margin on products is expected to increase 100 to 200 basis points. Research and development, selling, general and administrative expenses are expected to be flat. The company expects a continuous growing momentum in the broadband in the future quarters.
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