) reported GAAP net income of $ 251 million or 43 cents per share
versus a net income of $254 million or 45 cents in the year-ago
quarter. The year-over-year decrease in earnings was due to
higher expenses. For 2012, GAAP net income stood at $1.25 per
share versus $1.65 in the previous year.
Non-GAAP net income stood at 76 cents per share in fourth quarter
2012 compared to 68 cents in the year-ago quarter. The adjusted
quarterly earnings beat the Zacks Consensus Estimate by 24 cents.
For full year 2012, non-GAAP net income was $2.92 per share
versus $2.89 per share in the prior year. The fiscal
earnings beat the Zacks Consensus Estimate of $2.01.
The company generated revenues of $2.08 billion in the fourth
quarter of 2012, up 14.3% year over year and ahead of the Zacks
Consensus Estimate of $2.06 billion. Net revenue for full year
2012 was $8.01 billion, up 8.4% year over year.
In terms of end markets, Broadband Communications revenues were
up 1.0% sequentially, driven by growth in set-top boxes. Mobile
& Wireless segment revenues decreased 1% sequentially to
$1.01 billion. Revenues from Infrastructure & Networking
segment decreased 8.5% sequentially, driven by broad-based
softness across all its product categories.
On a product basis, product revenues came in at $2.0 billion in
fourth quarter 2012. Income from the Qualcomm agreement
came in at $43 million in fourth quarter versus $52 million in
the year-ago quarter. License revenues stood at $9 million versus
$ 5 million in the year-ago quarter.
Non-GAAP product gross margin was up to 52.2% in fourth quarter
2012 from 50.5% in the year ago quarter while GAAP product margin
came in at 49.5%, up from 49.3% in the year-ago quarter.
The company reported research and development expenses of $590
million in fourth quarter 2012 compared to $479 million in the
Broadcom generated $593 million in cash from operations in fourth
quarter 2012 and $1.9 billion for the full year. The company
increased its quarterly cash dividend by 10% to 11 cents per
share. Broadcom ended 2012 with cash and equivalents of $1.6
billion, down from $4.1 billion at the end of the previous year.
Concurrent with the earnings release, management provided its
guidance for first quarter 2013. Infrastructure revenues are
expected to be down sequentially due to the ongoing softness
across the market segments. Mobile & Wireless segment is also
expected to decline due to seasonality in the first quarter.
Broadcom expects revenues to be $1.90 billion in first quarter
The company expects product gross margin on a GAAP basis as well
as on a non-GAAP basis be flat to down 50 basis points
sequentially in the first quarter of 2013.
On a GAAP basis, research & development and selling,
general, and administrative expenses are expected to be up $35
million - $50 million sequentially.
BROADCOM CORP-A (BRCM): Free Stock Analysis
JUNIPER NETWRKS (JNPR): Free Stock Analysis
QUALCOMM INC (QCOM): Free Stock Analysis
SANDISK CORP (SNDK): Free Stock Analysis
To read this article on Zacks.com click here.
At the same time, the company needs to be wary of its
competitors, which include formidable names such as
Juniper Networks, Inc
Broadcom Corp currently has a Zacks Rank #2 (Buy). One of its
) also carries a Zacks Rank #2 (Buy).