Avago Technologies Q4 Profit Surges

(RTTNews) - Semiconductor devices maker Avago Technologies Ltd. (AVGO), Wednesday reported an increase in profit for the fourth quarter, as revenues jumped 16 percent and operating costs dropped.

The Singapore-based chip maker's fourth-quarter profit rose to $429 million or $1.49 per share from $135 million or $0.50 per share last year.

Excluding special items, net income from continuing operations for the quarter was $737 million or $2.51 per share, up from $556 million or $1.99 per share last year. On average, 24 analysts polled by Thomson Reuters estimated earnings of $2.38 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter rose to $1.84 billion from $1.59 billion a year ago. Adjusted revenues improved to $1.85 billion from $1.61 billion last year. Analysts had a consensus revenue estimate of $1.85 billion for the quarter.

Gross margin for the quarter improved significantly to 54 percent from 50 percent last year, while operating costs dropped to $483 million from $487 million last year.

Looking forward to the first quarter, the company expects adjusted revenues of $1.78 billion, plus or minus $25 million. Analysts currently estimate revenues of $1.82 billion.

AVGO closed Wednesday's trading at $132.21, down $0.68 or 0.51%, on the Nasdaq. The stock, however, gained $8.09 or 6.12%, on the after-hours trade.