Tags: Revenues

Broadcom reports drop in profits in fourth quarter

Microprocessor maker Broadcom has come out with their latest quarterly report and the company has said that their fourth-quarter profits plunged 76 percent on charges related to how it previously accounted for stock options grants.

The company posted net income of $45.1 million, or 8 cents per share in the three months ended Dec. 31, 2006. This was down big time from figures of $186.7 million, or 32 cents per share, in the year earlier period.

Excluding the charges, the company would have posted net income of $184.9 million, or 31 per share, compared to $196.8 million, or 34 per share in the same period last year.

Broadcom said that they benefitted from the massive popularity of the recently launched videogaming console Nintendo Wii.

For the full year 2006, Broadcom reported net income of $379 million, or 64 cents per share, compared with $367 million, or 66 cents per share in 2005.