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The Irvine, California-based company reported net income for the third quarter of $84.6 million or $0.16 per share, compared to $164.9 million or $0.31 per share in the year-ago quarter.
On average, twenty four analysts polled by Thomson Reuters expected the company to earn $0.33 per share for the quarter. Analysts estimates typically exclude special items.
Net revenues for the quarter decreased 3.4% to $1.25 billion from $1.30 billion in the prior-year quarter. Revenues, nevertheless, came in ahead of twenty eight Street analysts' consensus of $1.16 billion for the third quarter.
Segment wise, product revenue for the quarter dropped to $1.19 million from $1.25 billion in the third quarter of 2008. Licensing revenue grew to $59.45 million from $44.39 million in the year-earlier quarter.
In the immediately preceding second quarter, Broadcom reported a sharp decline in its profit of $13.40 million or $0.03 per share, as revenue dropped 13.4% to $966.32 million.
Among the others in the industry, Texas Instruments Inc. (TXN | Quote | Chart | News | PowerRating) said that its third quarter profit dropped 4% to $538 million or $0.42 per share. Earnings were hurt mainly by lower revenue, essentially the Wireless segment. Revenues for the quarter declined 15% to $2.88 billion.
Another peer, Qualcomm Inc. (QCOM | Quote | Chart | News | PowerRating) is scheduled to report its third quarter financial results on November 1. The Street currently expect Qualcomm to report earnings of $0.52 per share on revenues of $2.72 billion for its third quarter.
For the quarter under review, total gross margin of Broadcom was 50.9%, compared to 52.3% in the corresponding quarter last year.
Total operating cost and expenses was $1.17 billion, compared to $1.14 million in the year-earlier quarter. Income from operations was $88.63 million, compared to $157.36 million in the same quarter last year.
Research and development expenses was $391.17 million, compared to $379.23 million in the prior-year quarter. Selling, general and administrative expenses was $142.48 million, compared to $141.94 million in the year-earlier quarter.
Commenting on the results, Broadcom's president and chief executive officer, Scott McGregor said, "Broadcom executed well in the third quarter, generating revenue growth of over 20% sequentially for the second quarter in row. This strong revenue growth is well above the semiconductor industry growth rate, and was driven by a combination of our target markets continuing to recover, new product ramps and the breadth of Broadcom's product line."
For the nine-month period, the company's net income dropped to $6.06 million or $0.01 per share from $374.01 million or $0.70 per share in the similar period last year.
Total revenues for the period declined 10.9% to $3.15 billion from $3.53 billion in the prior-year period.
BRCM closed Thursday's regular trading at $30.73, up $0.42 or 1.39%, on a volume of $12.40 million shares. However, the stock lost $2.35 or 7.65%, and traded at $28.38 in after hours. For the past 52-weeks, Broadcom shares trended in a broad range of $13.15 - $31.20, on a 3-month average volume of 12.42 million shares.
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