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Broadcom Swings To Q4 Profit

Broadcom beats Wall Street's revenue estimates for its fourth quarter.

IRVINE, Calif. (TheStreet) -- Broadcom swung to a profit and beat Wall Street's revenue estimates in its fourth-quarter results.

The company also announced its first quarterly cash dividend of 8 cents a share after market close on Wednesday, as well as the acquisition of 10-Gigabit broadband specialist

TekNovus

for $123 million.

The chipmaker, which competes with

Qualcomm

(QCOM) - Get Report

and

Texas Instruments

(TXN) - Get Report

, reported fourth-quarter sales of $1.34 billion, up 19.2% from $1.127 million in the same period last year and just above analysts' estimate of $1.32 billion.

Broadcom also earned 11 cents a share on net income of $59.2 million, compared to a loss of 32 cents a share and a loss of $159.2 million in the prior year's quarter, when the company took a hit from impairment charges and its acquisition of

AMD's

(TXN) - Get Report

digital T.V. business.

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Investors were unimpressed by the results, however, and the company's shares dipped 71 cents, or 2.55%, to $27.18 in extended trading.

The Orange County, Calif., firm was expected to top consensus estimates, due to strong demand from its broadband and enterprise

customers

, which was reflected in a sales hike of more than 19%.

The company's fourth-quarter results included a one-time settlement charge of $160.5 million related to previous

stock option

backdating, which reduced earnings by 31 cents a share. The company also received $63.2 million from its directors' and officers' insurance companies during the quarter, which increased net income by 12 cents a share.

Excluding items, analysts surveyed by Thomson Reuters had forecast Broadcom earnings of 44 cents a share.

For the full year, Broadcom brought in revenue of $4.49 billion, down from $4.66 billion in fiscal 2008. Analysts had predicted revenue of $4.46 billion.

-- Reported by James Rogers in New York

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