Broadcom tops revenue, profit on demand from smartphone makers

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(Reuters) – Chipmaker Broadcom Ltd (AVGO.O) on Thursday reported better-than-expected quarterly profit and revenue on strong demand for its chips from smartphone makers.

Broadcom, whose WiFi chips are found in Apple Inc’s (AAPL.O) iPhone and most Android phones, scrapped its hostile bid for rival Qualcomm (QCOM.O) on Wednesday after U.S. President Donald Trump blocked the attempt citing national security concerns.

However, the company said it will continue with its plans to redomicile to the United States.

Net income attributable to ordinary shares rose to $6.23 billion, or $14.62 per share, in the first quarter ended Feb. 4, from $239 million, or 57 cents per share, a year earlier.

The company, which announced a quarterly interim dividend, said it recorded a gain of $5.79 billion due to the recently enacted U.S. tax law.

Net revenue rose to $5.33 billion from $4.14 billion.

Excluding items, the company earned $5.12 per share.

Analysts on average had expected earnings of $5.05 per share and revenue of $5.32 billion.

Singapore-based Broadcom forecast current-quarter revenue of $4.92 billion to $5.07 billion.

Analysts on average were expecting revenue of $5.01 billion, according to Thomson Reuters I/B/E/S.