Broadcom trimmed its financial guidance for Q3. Revenue is now expected to be flat to up slightly compared to second quarter 2004 revenue of $641 million. Broadcom’s previous guidance was for third quarter revenue to be in the range of $673 million to $680 million, or up approximately 5% to 6% sequentially. The revised revenue guidance range still represents an increase of more than 50% over the $426 million revenue reported for the third quarter of 2003.
Broadcom said the revision in revenue guidance is attributable to “requests from certain customers that the delivery of previously scheduled orders be delayed into future periods due to excess inventory within the supply chain. While all four of Broadcom’s business groups have been affected to some degree by this inventory rebalancing, the adjustments relate primarily to a limited number of customers within the Broadband Communications and Mobile & Wireless Business Groups. Specific product areas that have experienced weaker sales compared with the prior quarter include satellite and cable set-top box applications and cellular handsets, the latter particularly in the China market.”
Additional information is available from Broadcom online. The company will host an investor conference call on September 13. http://www.broadcom.com
- In July, Broadcom reported record Q2 revenue of $641.3 million, an increase of 11.8% from the $573.4 million reported for the first quarter of 2004 and an increase of 69.7% from the $377.9 million reported for the second quarter of 2003. Net income (GAAP) was $63.8 million, or $.18 per share (diluted), compared with GAAP net income of $39.9 million, or $.12 per share (diluted), for the first quarter of 2004. Q2 2004 also marked the company’s twelfth consecutive quarter of revenue increases. The strongest revenue growth on a sequential basis was experienced in the company’s broadband communications and enterprise networking businesses.