Broadcom reported better-than-expected fiscal second quarter results and projected strong demand ahead from service providers and cloud vendors.
The company reported second quarter net income of $1.49 billion, or $3.30 a share, on revenue of $6.61 billion, up 15% from a year ago. Non-GAAP earnings were $6.62 a share.
Wall Street was looking for second quarter revenue of $6.5 billion with non-GAAP earnings of $6.43 a share.
Broadcom’s semiconductors are used in data centers, networking gear, broadband and wireless devices as well as industrial. The software unit features enterprise mainframe, cybersecurity and automation and monitoring apps.
As for the outlook, Broadcom projected third quarter revenue of $6.75 billion with adjusted EBITDA of about 60% of revenue.
Analysts were modeling non-GAAP earnings of $6.59 a share on revenue of $6.6 billion.
CEO Hock Tan said the company saw strong chip sales across its portfolio and the third quarter will also be better than expected. “Our third quarter outlook projects this year-over-year growth to sustain, as we continue to see strong demand from service providers and hypercloud,” said Tan.
In the second quarter, semiconductors were 73% of sales with software, led by CA Technologies, representing 27%. Both units showed growth from a year ago.