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Broadcom’s Revenue Guidance for 3Q15

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Dec. 4 2020, Updated 10:53 a.m. ET

Net income for 2Q15 included acquisition cost of Avago

Generally accepted accounting principles (GAAP) net income for 2Q15 included costs associated with the proposed acquisition of Avago (AVGO) of $22 million or $0.04 per share. Broadcom’s press release on July 31, 2015, stated, “GAAP net income for the first quarter of 2015 included impairment charges for long-lived assets of $143 million, or $0.23 per share. GAAP net loss for the second quarter of 2014 included charges for the impairment of long-lived assets, restructuring costs and an inventory write-down related to our decision to exit the cellular baseband business totaling $187 million, or$0.32 per share, and additional charges for the impairment of other purchased intangible assets, settlement costs and other gains of $48 million, or $.08 per share.”

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Revenue expected to be $2.13 billion

Broadcom (BRCM) expects revenues for 3Q15 to be approximately $2.13 million with a possible divergence of $75 million. Gross margin is expected to be 53.8% whereas research & development (or R&D), selling, general and administrative expenses are expected to decrease by $10 million.

Broadcom looking to diversify

Broadcom has stated that it is looking to enter new markets including the Internet of Things (or IoT), automotive as well as the “small cells” segments. Other semiconductor companies such as Micron (MU) and Intel (INTC) are looking to enter the IoT business segment due to substantial long-term growth and demand projected.

Broadcom accounts for 0.76% of the Technology Select Sector SPDR ETF (XLK) and 5.07% of the VanEck Vectors Semiconductor ETF (SMH).

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