I skipped breakfast this morning, knowing I wouldn't need it.
That's because I knew I had a big plate of crow waiting for me, thanks to broadband chip-maker Broadcom's
Not so. Broadcom wowed Wall Street by reporting $1.03 billion in revenue for the quarter, in the upper range of the company's own projections. Earnings doubled over last year, with $90.3 million falling to the bottom line on a GAAP basis. While Broadcom saw some decline in broadband communications revenue as sales of satellite set-top box products were weaker than expected, strength in the enterprise networking and mobile and wireless business lines made for a strong quarter.
The mobile and wireless business -- which would be impacted by Motorola's mistakes -- remained strong, boosted by a $32 million royalty payment from Verizon Wireless (a joint venture between Verizon Communications
While Motorola painted an even worse picture for the coming quarter, Broadcom projected decent revenue in the range of $975 million to $1.005 billion. This is down from the current level, obviously, but that's mostly due to seasonal factors. For the coming year, Broadcom sees more growth opportunity in products such as Bluetooth headsets and wireless handsets from customers that are performing, such as Samsung.
Broadcom is also looking forward to developing a solid revenue stream from top handset maker Nokia
One last bit of good news investors received was that Broadcom would start moderating its expenses going forward. After spending heavily in R&D and watching margins plummet for several quarters, the company will be focused more diligently on converting those investments into revenue. If the company's diverse product and customer base can hold up as well as it did this quarter, investors should be quite pleased.
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Fool contributor Dave Mock takes his crow with a side of humility. He owns shares of Motorola and Qualcomm and is the author of The Qualcomm Equation. The Fool's disclosure policy levels the playing field for all parties.