|Broadcom Projects Robust Sales on Strong Smartphone Demand |
By Ian King
December 6, 2017, 4:21 PM EST Updated on December 6, 2017, 6:32 PM EST
Apple supplier posts jump in wireless chip unit revenue
Chipmaker sticking to long-term target of 5% annual growth
Broadcom Ltd., the chipmaker that is trying to pull off the biggest takeover in the history of technology, gave an upbeat sales forecast, indicating that its smartphone customers are optimistic about demand.
Revenue in the period that ends Feb. 4 will be about $5.3 billion, the San Jose, California-based company said Wednesday in a statement. That compares with analysts’ average estimate of $4.83 billion, according to data compiled by Bloomberg. The forecast includes a partial contribution from the recently acquired networking business of Brocade Communications Systems Inc.
Chief Executive Officer Hock Tan has led his company’s climb up the ranks of chipmakers in the past three years through a series of acquisitions. That scale now makes its earnings an indicator of demand across the communications industry, in particular because Broadcom is a major supplier of components to Apple Inc. for the iPhone. It’s trying to extend that reach even further through a $105 billion offer made in early November for Qualcomm Inc., the biggest maker of chips that power smartphones.
continues at the link