Broadcom Announces $1 Billion Share Buyback

Communications chipmaker Broadcom has announced a $1 billion share repurchase program, which is about 8.1% of its current $12.3 billion market capitalization.

The company had projected revenue between $1.25 billion and $1.3 billion for the third quarter without any profit outlook. During the first half of the year, it reported a 120% increase in net income to $209.1m on revenue up 24% at $1.79 billion.

The company expects to use cash on hand to fund the repurchases. Since 2005, the company has spent $2.43 billion on its share repurchase program. The new authorization is valid through July 31, 2011.