Communications chip design company Broadcom Corp divulged in a regulatory filing that its third-quarter results will come in higher than expected and that company insiders are taking advantage of the company’s solid performance in the market by offering a huge block of shares. In a registration statement with The Securities and Exchange Commission, Broadcom said it expects to report revenue for the third quarter of approximately $52m to $52.5m, and earnings of $0.16 to $0.17 – when analysts surveyed by First Call were expecting $0.14. It will also be selling 3.0 million shares of its common stock, of which just 392,500 will be new shares offered by the company, with the remaining 2.61 million shares being sold by current shareholders. The move indicates that insiders are looking to realize some substantial profits on the stock, which has traded almost as high as $90 since its initial public offering in April at $24. The company’s two co-founders have registered to sell 450,000 shares each. Equity stakeholders Intel Corp, and Scientific Atlanta Inc have also filed to sell about one million shares between them. At a proposed offering price of $77, Broadcom’s end of the offering should net it $28.4m, which it says it will use for general corporate purposes, including working capital and capital purchases such as test equipment, design tools and leasehold improvements in connection with the company’s planned facilities expansion. Broadcom said it expects to release its actual results for the third quarter on or about October 12. Shares in the company closed at $65.75 Thursday, down $5.25.
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