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Broadcom Corporation (BRCM - Analyst Report) is willing to pay $164 million to acquire Long Term Evolution (LTE)-related assets from Renesas Electronics Corporation’s affiliates. Renesas is a leading supplier of flash microcontrollers. The move is aimed to accelerate the launch of Broadcom’s first multimode, carrier-validated LTE chip platform in early 2014.

This acquisition strengthens Broadcom’s presence in the rapidly growing LTE market with a production-ready, carrier-validated system on chips (SoC). Broadcom's chips integrating Wi-Fi and Bluetooth technology are used in top-tier smartphones and tablets.

Post-acquisition, Broadcom will benefit from a dual-core LTE (chip) that is suitable for volume production and is carrier-validated by leading global operators in North America, Japan and Europe. The acquisition will be dilutive to fourth quarter adjusted earnings per share by 12 cents and by 10 to 15 cents for fiscal 2014. However, the transaction is expected to be accretive to earnings in 2015.

Additionally, Broadcom also updated its guidance for the upcoming quarter. It narrowed its revenue guidance range to between $2.08 billion and $2.18 billion from its previous range of $2.05 billion to $2.2 billion.  GAAP and non-GAAP product gross margins are expected to be in the range of 50 to 100 basis points. GAAP and non-GAAP research and development, and selling, general and administrative expenses are expected to be approximately $5 million to $15 million and flat to up $20 million, respectively.

Based in Irvine, CA., Broadcom is engaged in designing and marketing semiconductor components of network voice, video, and data traffic for various applications. The company continues to drive innovation and engineering excellence across a broad range of communication end markets to help its customers enhance device performance and overall efficiency.

Broadcom currently has a Zacks Rank #4 (Sell). Other stocks that look promising and are worth a look are Cypress Semiconductor Corporation  (CY - Analyst Report), Towerstream Corporation (TWER - Snapshot Report) and TriQuint Semiconductor, Inc (TQNT - Analyst Report), each carrying a Zacks Rank #2 (Buy).

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