Broadcom +10% on strategic alternatives news; strong guidance

|About: Broadcom Limited (AVGO)|By:, SA News Editor

The company has hired JPMorgan to help explore strategic alternatives for its cellular baseband business, including a sale or wind-down.

Either action could be expected to save about $600M in annualized R&D and SG&A expenses, says Broadcom (BRCM), after filtering out reductions in stock-based compensation.

Along with the news, Broadcom updates its outlook for the quarter ending this month, continuing to expect revenue of $2-$2.1B, but now seeing product gross margin to be at or above the high end of previous guidance.

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