Broadcom, Okta report strong quarters

Broadcom reported financial results amid rising tensions with Qualcomm's board of directors.
Written by Natalie Gagliordi, Contributor

Broadcom reported its fourth quarter financial results on Wednesday amid rising tensions with Qualcomm's board of directors. The company delivered net income of $671 million, or $1.50 per share. Non-GAAP earnings were $4.59 a share on revenue of $4.84 billion.

Wall Street was looking for earnings of $4.52 per share on revenue of $4.83 billion. Broadcom's shares were up just over two percent in late trading.

In prepared remarks, Broadcom chief executive Hock Tan touted the company's prowess when it comes to mergers and acquisitions -- a statement that's likely a swipe at Qualcomm's leadership for rejecting Broadcom's unsolicited $130 billion buyout offer.

"We also closed the acquisition of Brocade early in the first fiscal quarter of 2018, adding to our very successful track record of highly accretive M&A."

Broadcom offered to buy Qualcomm last month in a massive deal that would potentially create a semiconductor, industrial internet and 5G juggernaut. The deal was quickly shut down in a unanimous decision by Qualcomm's board, which said the deal undervalued Qualcomm and its future prospects.

Earlier this week, Broadcom submitted a proposal to nominate a slate of 11 independent directors to replace Qualcomm's entire current board, setting the stage for a proxy fight over control of the global chip giant.

On other earnings news, identity and device management firm Okta reported record revenue as part of its third quarter financial results.

The San Francisco-based company, which went public on the NASDAQ market in April, posted a non-GAAP loss of 19 cents per share on revenue of $68.2 million, up 61 percent from the same time last year.

Analysts expected a loss of 24 cents per share on revenue of $62.8 million. Shares climbed up more than five percent in after-hours trading.

In terms of guidance, Okta expects fourth quarter revenue between $70 million to $71 million, with a non-GAAP loss between 18 cents and 17 cents a share. Wall Street is expecting a loss of 20 cents a share on revenue of $67.8 million.

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