IRVINE, Calif. (AP) — Chipmaker Broadcom Corp. said Tuesday that its third-quarter net income fell 18 percent despite revenue gains as it booked restructuring costs and legal expenses.
Net income in the three months to Sept. 30 fell to $270 million, or 48 cents per share, compared with $328 million, or 60 cents per share, a year earlier.
Adjusted to exclude stock-based compensation expenses, amortization of intangibles and one-time legal bills, earnings came to 82 cents per share, beating the 77 cents expected by analysts surveyed by FactSet.
Total revenue grew to $1.96 billion from $1.75 billion a year ago.
Analysts were looking $1.95 billion in revenue.
The company said last month it would purchase chipmaker NetLogic Microsystems Inc. for $3.7 billion in cash in a transaction that should close in the first half of next year if regulatory approvals are received in the U.S., Taiwan and China.
Broadcom said it expects fourth-quarter revenue of $1.70 billion to $1.80 billion, far below the $2.00 billion expected by analysts.
Shares fell $1.90, or 5.3 percent, to $33.95 in after-hours trading Tuesday, after closing the regular session down $1.59, or 4.3 percent, at $35.80.