Avago posts loss, despite revenue growth

FORT COLLINS – Avago Technologies Ltd., which makes semiconductors for smartphones, on Thursday reported a net loss of $164 million, or 65 cents per diluted share, for the third quarter ending Aug. 3.

That compares with a profit of $142 million, or 57 cents per share, for the same quarter a year ago.

The loss came despite net revenue of $1.269 million in the third quarter, up 81 percent from the previous quarter and 97 percent from the same quarter in 2013.

Avago (Nasdaq: AVGO), a spinoff of Agilent Technologies Inc., has headquarters in Singapore and San Jose, Calif., but its largest campus is on Ziegler Road in Fort Collins.

Avago completed a $6.6 billion purchase of LSI Logic in May, then agreed to sell LSI’s flash businesses to Seagate Technology. Earlier this month it agreed to sell its Axxia networking business to Intel Corp. Both transactions are expected to close in the fourth quarter this year.

Operating expenses were $555 million, compared with $197 million in the prior quarter and $164 million for the same quarter last year.

Gross margin from continuing operations was $393 million, or 31 percent of net revenue. This compares with gross margin of $357 million, or 51 percent of net revenue last quarter, and gross margin of $304 million, or 47 percent of net revenue in the same quarter last year.

 

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