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eewiz
Didnt know abt SEMCO. If thats the case BRCM/QCOMM has enough reasons to be ...
Roadman
BRCM should be scared, they have forget about Samsung sockets. As Samsung is ...
Broadcom not threatened by Samsung's CSR buy
Dylan McGrath
7/25/2012 12:29 AM EDT
Q2 sales, profit and Q3 guidance
Broadcom (Irvine, Calif.) reported record second quarter sales of $1.97 billion, up 8 percent from the previous quarter and up 10 percent compared with the second quarter of 2011. The company reported a net income in accordance with generally accepted accounting principles (GAAP) of $160 million, or 28 cents per diluted share, up 82 percent from the previous quarter but down 9 percent compared with the year-ago quarter.
On a non-GAAP basis, excluding charges, Broadcom report a net income of $435 million, or 72 cents per diluted share, up 12 percent from the previous quarter and up 4 percent compared with the year-ago quarter.
Broadcom's results exceed consensus analysts' expectations, which called for sales of $1.95 billion and non-GAAP earnings of 67 cents per share, according to Yahoo Finance.
For the third quarter, Broadcom said it expects sales to increase to between $2 billion and $2.15 billion, an increase of 2 to 9 percent sequentially. The sales target was in line with consensus analysts' expectations of about $2.11 billion, according to Yahoo Finance.
Analysts generally applauded Broadcom's second quarter performance and third quarter sales target. While many chip companies have hit the low end of second quarter expectations and guided for third quarter sales below prior expectations, "we would characterize Broadcom's earnings as a diamond in the rough," said Gary Mobley, an analyst with Benchmark Capital, in a report circulated Wednesday.
"Broadcom shares could see a boost as most investors feared far worse," Mobley wrote. But Mobley left intact Benchmark's "hold" rating on Broadcom's stock and reduced his firm's price target for the shares to $32 from $38. Shares of Broadcom traded at $33.69 in mid-day trading Wednesday, up nearly 10 percent from Tuesday's closing price.
Also Tuesday, Broadcom introduced a combo chip for smartphones, tablets, ultrabooks and other mobile devices. The BCM4335 integrates a complete 5G Wi-Fi system including the MAC, PHY and RF with Bluetooth 4.0, FM radio and software on a single chip using 40-nm CMOS process, Broadcom said. The BCM4335 is now sampling to Broadcom's early access customers, with full production expected in the first quarter of 2013, Broadcom said.
McGregor said the BCM4335 "builds on a franchise that has shipped over 1 billion wireless combo chips to date."
Broadcom (Irvine, Calif.) reported record second quarter sales of $1.97 billion, up 8 percent from the previous quarter and up 10 percent compared with the second quarter of 2011. The company reported a net income in accordance with generally accepted accounting principles (GAAP) of $160 million, or 28 cents per diluted share, up 82 percent from the previous quarter but down 9 percent compared with the year-ago quarter.
On a non-GAAP basis, excluding charges, Broadcom report a net income of $435 million, or 72 cents per diluted share, up 12 percent from the previous quarter and up 4 percent compared with the year-ago quarter.
Broadcom's results exceed consensus analysts' expectations, which called for sales of $1.95 billion and non-GAAP earnings of 67 cents per share, according to Yahoo Finance.
For the third quarter, Broadcom said it expects sales to increase to between $2 billion and $2.15 billion, an increase of 2 to 9 percent sequentially. The sales target was in line with consensus analysts' expectations of about $2.11 billion, according to Yahoo Finance.
Analysts generally applauded Broadcom's second quarter performance and third quarter sales target. While many chip companies have hit the low end of second quarter expectations and guided for third quarter sales below prior expectations, "we would characterize Broadcom's earnings as a diamond in the rough," said Gary Mobley, an analyst with Benchmark Capital, in a report circulated Wednesday.
"Broadcom shares could see a boost as most investors feared far worse," Mobley wrote. But Mobley left intact Benchmark's "hold" rating on Broadcom's stock and reduced his firm's price target for the shares to $32 from $38. Shares of Broadcom traded at $33.69 in mid-day trading Wednesday, up nearly 10 percent from Tuesday's closing price.
Also Tuesday, Broadcom introduced a combo chip for smartphones, tablets, ultrabooks and other mobile devices. The BCM4335 integrates a complete 5G Wi-Fi system including the MAC, PHY and RF with Bluetooth 4.0, FM radio and software on a single chip using 40-nm CMOS process, Broadcom said. The BCM4335 is now sampling to Broadcom's early access customers, with full production expected in the first quarter of 2013, Broadcom said.
McGregor said the BCM4335 "builds on a franchise that has shipped over 1 billion wireless combo chips to date."
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eewiz
7/25/2012 1:07 AM EDT
Does anyone know whether CSR's "handset connectivity solutions" include bluetooth?
Typo "presumably a blow to Broadcom, a major supplier to Broadcom. " should be samsung.
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dylan.mcgrath
7/25/2012 1:37 AM EDT
Thank you for pointing this out. I don't know the answer to your CSR question off the top of my head but I will look into it.
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dylan.mcgrath
7/25/2012 1:43 AM EDT
PS- From CSR's website, I would say the answer to your Bluetooth question is apparently yes. Excerpt below.
CSR is a leading provider of multi-function semiconductor platforms for the auto, camera, document imaging, low-energy connectivity, and wireless voice & music markets — as well as semiconductors for the handset and many other consumer electronics markets. Our core expertise is in the areas of audio, connectivity, location and imaging technologies and our technology portfolio includes: Bluetooth® and Bluetooth Smart; Global Navigation Satellite Systems (GNSS) and GPS location products; FM radio; Wi-Fi; Near-Field Communication (NFC); audio and associated codecs; and imaging and next-generation video processing technologies.
http://www.csr.com/about
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elctrnx_lyf
7/25/2012 8:18 AM EDT
I appreciate the confidence levels of Broadcom CEO but Samsung will definitely have a better strategy in mind for such key acquisition. So in the long term Broadcom should watch out for any products from samsung acquired CSR group and be ready for the competition.
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goafrit
7/25/2012 1:00 PM EDT
A very sound suggestion to the CEO of Broadcom. Of course no one expects him to panic in the public. Yet, he has to be ready to innovations from Samsung which we expect in coming quarters after this acquisition.
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goafrit
7/25/2012 12:58 PM EDT
It will very naive for Broadcom not to take Samsung very serious. This company has free cash and is noted to invest in any sector they want to rule. Broadcom must internally work hard if they want to say in business.
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dylan.mcgrath
7/25/2012 1:22 PM EDT
I certainly don't believe that anything McGregor said implied that Broadcom does not take Samsung seriously. Samsung is a serious Broadcom customer, for one thing.
He basically said he doesn't think that the technology acquired was going to be able to challenge Broadcom's products from a technical standpoint, particularly not in the near term. He also said that in electronics companies from time to time make acquisitions such as this to increase vertical integration but that, generally, it doesn't seem to work out that well. I think his argument is supported by the trends of the last 20 years.
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Roadman
7/25/2012 2:41 PM EDT
BRCM should be scared, they have forget about Samsung sockets. As Samsung is leading Smartphone and Tablets those sockets will be out range. Essentially 20 - 30% of the market or so. Also Samsung cousin SEMCO ( Samsung Electro Mechanical Company) is one of the largest Module maker for Wifi, GPS, and Bluetooth chipsets. As smart phone/tablet/ Laptop/ ultrabook vendors buy modules. Also QCA should be worried as well. unless they build Wifi/GPS/Bluetooth into Snapdragon App processor line up.
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eewiz
7/26/2012 11:21 AM EDT
Didnt know abt SEMCO. If thats the case BRCM/QCOMM has enough reasons to be worried.
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