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Broadcom tops estimates on strong wireless chip demand

(Reuters) - Broadcom Ltd (AVGO.O) reported better-than-expected quarterly revenue and profit, as robust demand for smartphones boosted sales of its chips that power WiFi, Bluetooth and GPS.

Shares of the company rose 5 pct in extended trading after the company also forecast first-quarter revenue largely above analysts' estimates.

The company's strong results come at a time when it pursues Qualcomm (QCOM.O) Inc with a $103 billion (£77 billion) hostile bid under Chief Executive Hock Tan, who has transformed the chipmaker into a $100 billion behemoth through a series of acquisitions.

Broadcom's wireless business, whose WiFi chips are found in Apple Inc's (AAPL.O) iPhone and most Android smartphones, far outperformed all its other businesses with a 33.4 percent rise in sales and accounted for much of its profit.

The company also forecast current-quarter revenue of $5.30 billion, plus or minus $75 million, helped by its acquisition of network gear maker Brocade Communications Systems.

Analysts on average were expecting revenue of $4.83 billion, according to Thomson Reuters I/B/E/S.

Net income attributable to ordinary shares was $636 million, or $1.50 per share, in the fourth quarter ended Oct. 29, compared with a loss of $632 million, or $1.59 per share, a year earlier.

Excluding items, the company earned $4.59 per share.

Net revenue rose to $4.84 billion from $4.14 billion.

Analysts on average had expected earnings of $4.52 per share on revenue of $4.83 billion.


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