Broadcom to divest cellular baseband chip business

The successful sale or wind-down of the cellular baseband business is currently expected to result in a roughly USD 700 million reduction in annualized GAAP research and development and selling, general and administrative expenses, of which approximately USD 100 million relates to estimated reductions in stock-based compensation. Broadcom currently expects to organically reinvest roughly USD 50 million of these savings on an annualized basis into projects in the Broadband, Infrastructure and Connectivity businesses. Updated Business Outlook Broadcom also updated its business outlook for the three months ending June 30, 2014. Broadcom continues to expect revenue between USD 2.0 and 2.1 billion. Broadcom now expects both GAAP and non-GAAP product gross margin to be at or above the high end of the previously-guided range, driven principally by mix.