Broadcom has reaffirmed that its fiscal second-quarter sales would fall in line with previous estimates. For current period ending in April, the company predicted that its revenue for the quarter would be $3.53 billion, plus or minus $75 million. That is in line with the average analyst estimate of $3.56 billion in revenue. Gross margin, the percentage of sales remaining after deducting costs, will be 30.75 percent in the second quarter, plus or minus a percentage point.

For the first quarter of its fiscal year, the company reported net income of $377 million, compared with $351 million a year earlier. Excluding items, the company earned $2.41 per share. Sales rose 8.3 percent to $1.77 billion. Analysts had predicted a profit of $2.29 on revenue of $1.76 billion.

The company was created following the merger of Avago and Broadcom, with the combined company keeping the Broadcom name. Broadcom was bought for $37 billion last year by Avago, itself a spinoff of Agilent Technologies. The deal was biggest-ever chip merger and the company is now worth more than $50 billion. Broadcom currently has $22.9 billion of total debt, according to data compiled by Bloomberg. Chief Executive Officer Hock Tan has said his first priority is paying down debt, then returning cash to shareholders.

Broadcom, provides chips to manufacturers of phone networks, computer-storage systems, consumer Internet gateways and smartphones. Last year, Broadcom became one of the world’s top-10 chipmakers. Increasing demand for phone-networking components is helping the company make up for slowing orders for smartphone parts. Smartphone chips account for about 14 percent of the company’s sales. Apple and its contract manufacturer Foxconn each provided more than 10 percent of Broadcom’s revenue.

Broadcom also announced that it would be cutting about 1,900 positions globally across its business. The company estimates that it would take charges of $650 million through fiscal 2018 related to the position eliminations. Shares of Broadcom rose 7 percent in extended trading, but remains down 5.4 percent this year.