Big Jump in Sales Puts Broadcom in the Black

Broadcom Corp. said Thursday that a 70% jump in revenue helped propel it to a second-quarter profit, led by strong sales of its chips for cable and satellite modems and for Internet networking equipment.

Irvine-based Broadcom earned $63.8 million, or 18 cents a share, a turnaround from its loss of $892 million, or $3.08 a share, a year earlier, when the company had large one-time write-offs. Revenue was $641 million, up from $378 million.

The company said it benefited from products and technologies introduced or acquired during the quarter, which helped it boost market share in key segments such as chips for satellite TV set-top boxes and digital video recorders.

In April, for example, Broadcom bought Sand Video Inc., a Massachusetts company that focuses on video and compression technologies.

Chief Executive Alan “Lanny” Ross credited the company’s focus on new products and technologies for helping it record its highest quarterly revenue ever.

Broadcom will “benefit from the convergence of voice, video and data services, whether over wired or wireless networks,” Ross said during a conference call with analysts. “The convergence trends in the communications sector continue to expand.”

Broadcom shares, which jumped $1.33 to $36.40 in regular Nasdaq trading, slipped to $36.35 in late trading after the results were released.

Some investors may be nervous because inventory rose in certain product lines, which would make the company vulnerable if demand were to slow, said Aalok Shah, an analyst with Pacific Crest Securities in Portland, Ore.