Yesterday saw semiconductor firm Broadcom announce better-than-expected results. During the 4th quarter, Broadcom saw net revenues increase to $4.84bn, surpassing analysts’ estimates of $4.83bn. This strong performance was partly due to its wired infrastructure unit, which makes chips for set-top boxes and cable modems. Overall, the group saw adjusted earnings come in at $4.59 per share, slightly higher than forecasts of $4.52 per share. Looking forward, Broadcom expects first quarter revenues to increase to $5.3bn, much better than expectations of $4.83bn. The group also increased its quarterly dividend to $1.75 per share, 72% higher than the $1.02 dividend declared previously.
Broadcom took its first formal step towards launching a hostile takeover for Qualcomm on Monday. In a statement, the chipmaker unveiled a list of 11 nominees to the board of Qualcomm. The nominees consist of nine men and two women and include a former president of Nokia and the former chairman of Dialog Semiconductor. This move comes after Qualcomm rejected Broadcom’s $103bn offer last month, with Broadcom now attempting to remove Qualcomm’s board in order to force the company to engage with it. Looking forward, Qualcomm’s shareholders will be able to vote on Broadcom’s board director slate at the group’s annual meeting on the 6th of March 2017.