Semiconductors
Broadcom Sales Jump
Scott Moritz
10/19/06 - 04:40 PM EDT
Broadcom (BRCM Quote) stock jumped 3% after the company projected stronger-than-expected third-quarter sales.
Due to a stock options backdating review, the Irvine, Calif., communications chip maker posted only a partial financial report for the quarter ended in September. Sales for the quarter were $902.6 million, down from the $941 million in the second quarter, but well above the $695 million a year ago.
Broadcom is reviewing its books and said last month that it discovered about $1.5 billion worth of option grant irregularities. The company has delayed its financial filings and says it will need to restate some past reports.
"Despite the current near-term industrywide challenges, we continue to experience strong design win momentum," CEO Scott McGregor said in a press release.
Broadcom shares rose 42 cents to $29.39 in after-hours trading Thursday.