Though Avago's (NASDAQ:AVGO) revenue from continuing ops of $1.29B was below consensus, the figure excludes sales from its flash storage product unit (to be sold to Seagate) and its Axxia network processor unit (to be sold to Intel). With flash/Axxia included, revenue was $1.39B, above a $1.35B consensus.
FQ4 guidance, which excludes flash/Axxia but includes just-acquired PLX Technology, is for revenue from continuing ops to be up 18%-22% Q/Q. The consensus is at $1.42B.
FQ3 gross margin for continuing ops was 57%, up from 54% in FQ2 and 51% a year ago. Opex was 23.9% of revenue vs. 21.2% a year ago. GM is expected to be at 56% (+/- 1%) in FQ4, and opex is expected to be flat Q/Q at $307M.
Thanks to LSI's products, enterprise storage made up 32% of revenue. Wireless was 28%, wired infrastructure 27%, and industrial 13%. Strong 4G RF component demand helped wireless sales rise 26% Y/Y.