Broadcom is exploring strategic alternatives for its cellular baseband business, including a potential sale or wind-down. The company confirmed that it has engaged JP Morgan to consider its options.
Broadcom said a successful sale or wind-down of the cellular baseband business could result in a roughly $700 million reduction in annualized GAAP research and development and selling, general and administrative expenses, of which approximately $100 million relates to estimated reductions in stock-based compensation.
Broadcom also updated its business outlook for the three months ending June 30, 2014, saying it continues to expect revenue between $2.0 billion and $2.1 billion, with both GAAP and non-GAAP product gross margin to be at or above the high end of the previously-guided range.
