FORT COLLINS – Shares of semiconductor giant Broadcom
Ltd., which has a major presence in Fort Collins, jumped more than 6
percent in after-hours trading Thursday following the company’s first
earnings report reflecting the merger of Avago Technologies and
Broadcom.
San Jose, Calif.-based Avago closed its $37 billion acquisition of
rival Broadcom Corp. in February, with the new company taking on the
Broadcom Ltd. name and trading on the Nasdaq stock exchange under the
ticker symbol AVGO.
The new Broadcom – which at the time the merger closed employed
roughly 1,600 people between facilities in Fort Collins and Longmont,
mostly in Fort Collins – beat analyst estimates for both revenue and
earnings for the company’s second fiscal quarter that ended May 1. The
company also announced that it plans to pay an interim quarterly
dividend of 50 cents per share on June 30 to shareholders of record as
of June 17.
Broadcom posted a net loss of $1.2 billion, or $3.02 per diluted
share, for its second quarter. That’s compared to net income of $377
million, or $1.30 per diluted share for the company’s previous quarter,
prior to combining results for Avago and Broadcom Corp. Revenue grew to
$3.54 billion, double from the previous quarter.
The company also reported a cash balance of $2.04 billion as of May
1. Guidance for the third quarter includes roughly $3.74 billion in
revenue and capital expenditures of about $230 million.
Broadcom shares rose 14 cents Thursday to close at $154.91 before spiking to $164.50 after hours following the earnings news.
http://bizwest.com/broadcom-posts-3-54b-2q-revenue-first-post-merger-earnings-report/
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