Shares of Broadcom (NASDAQ:BRCM) dropped in late trading after the company offered a soft second-quarter outlook.
The Irvine, Calif.-based chip maker for mobile devices and digital cables posted net income of $228 million, or 40 cents a share, compared with $210 million, or 40 cents a share, in the same quarter last year. The company posted non-GAAP results of 68 cents a share, ahead of the Street’s view of 59 cents.
Revenue for the three months ended March 31 was $1.82 billion, up 24% from $1.46 billion a year ago, virtually matching average analyst estimates polled by Thomson Reuters of $1.81 billion.
“Broadcom reported solid results for the first quarter, with revenue above the mid-point of guidance and better-than-expected profitability,” Scott McGregor, the company’s chief executive, said in a statement. “In addition, momentum continues to build around our innovative solutions.”
Net income took a hit from higher expenses, with research and development up to $101 million from $89 million in the year-earlier period and selling, general and administrative costs widening by $5 million.
The technology giant offered a bleak second-quarter outlook, anticipating revenue in the range of $1.75 billion to $1.85 billion, below Wall Street estimates of $1.9 billion.