Avago (AVGO) expects FQ2 sales to be down 3%-6% Q/Q; that's worse than a consensus for a 2% drop. But with several other chipmakers with strong Apple exposure having already provided soft guidance (I, II), investors are taking the forecast in stride.
FQ1 gross margin was 52%, +100 bps Q/Q and Y/Y, and above a guidance range of 49.5%-51.5%. FQ2 GM is expected to be in a range of 51.5%-53.5%.
Wireless chip sales +13% Y/Y and 49% of revenue, wired industructure (boosted by CyOptics) +59% and 32% of revenue, industrial/other +6% and 19% of revenue.