Chipmaker Broadcom Corp said it was looking to sell or wind down its cost-intensive cellular baseband business that is hurting its operating income due to high research and development costs.The company's shares rose as much as 12 percent to $35.70 in trading before the bell.Broadcom said on Monday that selling or winding down the business would likely save $700 million per year.Excluding an estimated $100 million reduction in stock-based compensation, the company said it expected savings of about $600 million in research and development and other administrative costs.
Broadcom Corporation (Broadcom), is a global semiconductor solution for wired and wireless communications. Shares of BRCM traded higher by 0.63% or $0.2/share to $31.87. In the past year, the shares have traded as low as $23.25 and as high as $36.20. On average, 6291440 shares of BRCM exchange hands on a given day and today's volume is recorded at 6376506.
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