SANTA CLARA, Calif. Broadcom Corp. is sampling its first 40 nm chip, a cellphone media processor capable of recording full 1080-progressive high definition video. The news came at the company's annual meeting with Wall Street analysts where it said the company is poised for a return to profitable growth that will outpace its markets.
Supporting its financial claims, Broadcom said it expects revenues up five percent over its previous quarter and gross margins twice as high as previously projected, thanks to an uptick in demand for its broadband and enterprise networking chips. It had previously estimated flat sales over the prior quarter.
Through the recession Broadcom laid off about three percent of staff compared to competitors that let go as many as ten percent, said Eric Brandt, Broadcom's chief financial officer. He estimated the company was about three percent down in sales overall for the year compared to 14 percent for the chip sector.
"We conclude we gained market share," said Brandt.
Analysts such as Mark McKechnie of Broadpoint AmTech discounted the upgraded forecast. In a statement, McKechnie noted Broadcom's original projection was conservative. Companies in similar markets including Atheros, Intel, Marvell and Texas Instruments have recently guided projections up from two to 12 percent for the quarter, he added.
Separately, Broadcom executives said they expect new digital TVs with integrated Wi-Fi at next month's Consumer Electronics Show. Models capable of stereo 3D graphics could follow next year for as little as $100 in additional component costs, they added.
The company also announced an integrated chip to drive down costs of Blu-ray disk players and an ARM11-based device for portable media players.