Update (2:26 p.m.): Updated with analysts' mobile and wireless opinions and updated stock price information.
The semiconductor company said it in its first-quarter earnings report that it expects second-quarter revenue in the range of $2 billion to $2.1 billion. The midpoint of that guidance range fell just short of the $2.072 billion expected by analysts polled by Thomson Reuters I/B/E/S.
For the first quarter, Broadcom posted net profit of $165 million, or 28 cents a share, down from $191 million, or 33 cents a share, in the same period one year earlier. Non-GAAP earnings per share were 51 cents. Revenue declined 1% year over year to $1.98 billion.
Analysts polled by Thomson Reuters expected adjusted earnings of 46 cents a share on revenue of $1.958 billion.
The company's high-end chips for smartphones also faced increasingly tough competition in China, which led to the reduced profits and revenue in the first quarter.
Some analysts also suggested Broadcom could sell its struggling mobile and wireless business, which posted an operating loss for the first time since 2009 in the first quarter.
"Over the past 12 months, [Broadcom's mobile and wireless] revenues declined by 4%, and its operating margins declined by 1,600 basis points to 6%," Jefferies said in a research note. "Management is conceding connectivity share loss in midrange smartphones, and new cellular LTE products won't ramp until the second half of 2014...In the event Broadcom fails in cellular, we would expect them to either divest the business or shut it down."