Has the semiconductor industry just turned a corner?
Sales increased by 12% year-over-year to $1.8 billion, producing $418 million or $0.72 per share in non-GAAP earnings and $489 million of operating cash flows. Analysts would have settled for earnings of $0.63 per share.
Gross margins widened more than expected, mostly thanks to cost savings on the manufacturing side of things. Operating expenses swelled a little bit, unless you take out a one-time $25 million legal settlement expense (in which case, costs would go down).
The only real disappointment in Broadcom's report came from declining sales in the mobile division, driven by "some softness at a number of key customers." That's a nice way of pointing fingers at flagging phone phenom Nokia
But McGregor also dodged a question on how Apple's
Broadcom's good news failed to light a fire under the general semiconductor market; ON Semiconductor
Do you see a semiconductor revival in Broadcom's report or just a bright future for the company itself? My tea leaves are leaning toward the former scenario. To make sure you're on top of everything that's happening to the company, add Broadcom to your Foolish watchlist by clicking here, then drop down to the comments box to make your informed opinion known.
The soapbox is all yours.