Two of the leading mobile phone chip manufacturers, Broadcom and Texas Instruments, saw their stock prices decline Tuesday after releasing Q2 financials.
Broadcom reported its Q2 profits nearly quadrupled and that its revenue beat its forecast range, but the chip manufacturer’s stock still fell slightly in after-hours trading. Some analysts had expected Broadcom’s earnings per share to be higher than the 25 cents it reported.
Texas Instruments, which reported Monday, saw a 15% slide in its stock Tuesday because of a decline in Q2 net profit. Broadcom’s stock had been up on Tuesday but fell about 6% after its quarterly report was released.
Broadcom said its profit rose to $134.8 million in the second period, up from $34.3 million in the prior period. Its revenues were $1.2 billion, up from $897.9 million, after the company had forecast in April its Q2 revenues would be up to $1.125 billion.
TI had reported Q2 net income of $588 million, a 4% decline from a year earlier, and also said revenue dropped 2% to $3.35 billion. The company said demand for its products slowed unexpectedly in June because distributors cut their inventory levels. TI also blamed a decline in its wireless business in the second quarter.
In separate news, Broadcom also announced that it is shipping its combination wireless chip, the BCM4325, in volume and that it expects consumer products using it to be in the market by the end of the year. The chip combines Wi-Fi, Bluetooth and an FM radio. The company also said it is working on a second generation of the chip that might include 802.11n, GPS and low-energy Bluetooth.