Broadcom Corporation (NASDAQ:BRCM) revealed its Q3 results showing both encouraging and troubling signs for the coming future. The third quarter profit for the company rose up to $316 million giving it 55 cents for every share. Although the chip making company has seen an increase in the margins and the revenue, the revenue guidance offered by the company for the current quarter was a little weak.
The shares for Broadcom saw a dip by almost 8.1% hours after the company announced projections for the fourth quarter at $1.98 billion which is significantly lower than projections made by analysts at Thompson Reuters who placed the estimates at $2.13 billion.
Broadcom Corporation is a major chip manufacturer which relies heavily on the smart-phone and the handheld market. It makes nearly half of all the chips used in the handheld-device market. It is a supplier to both Apple Inc for its iPad and iPhones as well as Samsung Electronics and their Galaxy phones. The company is seeking to expand its already significant share in the network-processor market. It has also worked hard to maintain its tight hold on the mobile communications area by keeping up with the transitions towards next generation technology, it has recently cut a deal to buy LTE (Long Term Evolution) assets from the Renesas Electronics Corporation for the price of $164 million.
The company is also undergoing a global restructuring program in the current quarter, it reduced its workforce by around 1150 employees recording a total restructuring cost of $12 million in Q3. The company also added that they expect a further $20 million in costs for the current quarter. The overall profit for the company was stands at $316 million, 55 cents a share which is an increase from last year where it was $220 million, 38 cents per share. The company was also able to record a one-time settlement gain of $75 million in Q3. Per share earnings excluding the items rose from 70 to 76 cents going against analyst predictions of around 69 cents a share.
