Avago net profit falls despite revenue growth

FORT COLLINS – Semiconductor maker Avago Technologies Ltd. (Nasdaq: AVGO) on Wednesday reported a net profit of $263 million, or $1.16 per diluted share, for its fiscal year that ended Nov. 2.

That compared with a profit of $552 million, or $2.19 per share, last year.

The decreased profit came despite annual revenue climbing from $2.5 billion last year to $4.3 billion this year.

Avago has headquarters in Singapore and San Jose, Calif., but its largest campus is in Fort Collins.

After acquiring LSI Logic in May, Avago recently completed the sale of LSI’s flash and Axxia networking business to Intel Corp.

The company had a cash balance of $1.6 billion at the end of the fourth quarter.

Fourth-quarter revenue leaped from $783 million last year to $1.6 billion this year. Net profit for the quarter was $135 million, down from $172 million a year ago but a major improvement over its third quarter loss of $164 million.

The company expects as much as a 4-percent sequential increase in revenue for the first quarter of fiscal year 2015.

Avago’s earnings report was released after markets closed Wednesday. The company’s stock price closed at $95.13 on Wednesday, up more than 3 percent from Tuesday’s close.