Updated from 4:58 p.m. EDT

SAN FRANCISCO -- Broadcom's ( BRCM) profit slumped significantly in the third quarter, even as the chipmaker surpassed Wall Street's revenue expectations.

The Irvine, Calif., company reported revenue of $950 million for the three months ended Sept. 30, ahead of the $930 million expected by analysts and up 5% from this time a year ago.

Net income fell to $27.8 million, or 5 cents a share, from $110.1 million, or 19 cents a share, in the year-ago period.

Excluding stock option compensation and other expenses, Broadcom earned 27 cents a share, in line with analysts' expectations.

Shares of Broadcom were off nearly 13% to $36.70 in extended trading Tuesday.

CEO Scott McGregor said the company saw strength in the Bluetooth, wireless LAN and digital TV markets during the quarter.

"Broadcom continues to be a product cycle-driven company with a strong track record of successfully entering new markets," McGregor said.

In the past several months, Broadcom has aggressively moved to enter the cell-phone handset business, vowing to take 10% to 15% market share by 2009.

Recent signs of momentum in its cell-phone push , such as a deal with Nokia ( NOK), the world's No. 1 handset maker, have helped propel Broadcom shares up roughly 40% since July.

"In the fourth quarter of 2007 , and in 2008, we will continue to invest aggressively in research and development of products for the very large cellular handset market, as well as new product offerings to address more of our existing customers' needs," McGregor said.

The company did not provide specific financial guidance for the fourth quarter, although management was scheduled to hold a conference call Tuesday.