Avago Technologies Limited (AVGO) posts strong Q3 results, stock spikes

Avago Technologies Limited (Nasdaq : AVGO) shares raced ahead 8.9% to $31.87 Wednesday, a day after announcing strong third-quarter results. Volume for the stock topped 3.3 million, already surpassing its daily average of 2.7 million.

A news release issued August 23 pointed to net revenue of $603 million, an increase of 10% from the same quarter last year.

Gross margin was $297 million, or 49.3% of net revenue. This compares with gross margin of $263 million, or 47.8% of net revenue in the same quarter last year.

Third quarter net income was $144 million, or $0.57 per diluted share. This compares with net income of $123 million, or $0.50 per diluted share in the same quarter last year.

The same release quoted Avago CEO Hock Tan as saying, “During the third quarter of fiscal 2011, our four target markets performed as we expected and we outperformed these markets as our revenue growth for the quarter came in at the high end of guidance.

“While uncertainties prevail in the global economy today, we continue to believe revenue will grow for the balance of the fiscal year due to share gains with certain wireless and wired OEMs.”

Avago Technologies Limited, based in San Jose, California, is a leading designer, developer and global supplier of a broad range of analog semiconductor devices with a focus on III-V based products.

Tags: AVGO, biotech, financials, nasdaq, semiconductor, tech stocks, technology, Technology Stocks

This entry was posted on Wednesday, August 24th, 2011 at 12:09 pm by Glenn and is filed under Technology Stocks. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.