UPDATE 2-Broadcom revenue beats view, declares dividend

* Q4 shr profit $0.11 vs loss $0.32 a year ago

* Q4 rev $1.343 bln vs Wall St view $1.317 bln

* Sees Q1 rev flat to up 5 pct from Q4

* Shares rise almost 2 pct after hours
(Recasts; adds new dividend, byline; updates share price)

By Sinead Carew

NEW YORK, Feb 3 (BestGrowthStock) – Broadcom Corp (BRCM.O: ) on
Wednesday posted a quarterly profit versus a year-ago loss and
revenue that beat Wall Street expectations, citing a
better-than-expected holiday season and strong demand in Asia.

The stock rose 1.8 percent after Broadcom said it would
start paying a dividend of 8 cents per share as of March 8 and
forecast that first-quarter revenue would be better than usual
for this time of year.

Sanford Bernstein analyst Stacy Rasgon said the revenue and
dividend cheered investors who have been leery of chip stocks
in recent weeks on concerns about peaking demand for
semiconductors.

“These are all good things,” said Rasgon.

Revenue rose 19 percent to $1.343 billion from $1.127
billion in the year-ago quarter. This beat analysts’ average
expectation for $1.317 billion according to Thomson Reuters
I/B/E/S, and Broadcom’s own target of $1.32 billion.

Chief Executive Scott McGregor cited “upside demand in
several” of Broadcom’s business lines for the
better-than-expected revenue during a conference call with
analysts.

McGregor also told analysts that he was not seeing an
unusual build-up of inventory in the chip distribution channel,
in response to questions about stockpiling among customers that
could hurt future demand.

The maker of chips for a variety of products including
cellphones and television set-top boxes also forecast revenue
in a range of flat to up 5 percent for the current quarter,
which is typically worse than the fourth quarter.

Broadcom posted a profit of $59.2 million, or 11 cents per
share compared with a loss of $159.2 million, or 32 cents per
share in the same quarter a year ago.

While investor reactions seemed muted on such strong news,
Rasgon noted that Broadcom appeared to be doing better than
other chip stocks this earnings season. For example, Advanced
Micro Devices Inc (AMD.N: ) shares fell 4 percent right after the
company reported stronger-than-expected revenue.

Broadcom shares were up 1.8 percent at $28.40 in extended
trading after closing at $27.89 on Nasdaq.

Investing Basics

(Reporting by Sinead Carew; Editing by Phil Berlowitz and
Richard Chang)

UPDATE 2-Broadcom revenue beats view, declares dividend