BRCM Broadcom

Thursday, January 24, 2008

BRCM Broadcom: AmTech anticipates solid Deb quarter; guidance likeley seasonak, reducing ests (21.18 )

AmTsch notes BRCM is due to report its December quarter results this Thursday after the close. We believe revenue and EPS will come in-line to slightly better than consensus estimates of $1.02 billion and $0.32. For the March quarter, we believe BRCM will likely guide to seasonal trends vs. consensus ests looking for flattish at $1 bln. Sources indicate seasonal softness across its end markets and so they prefer to err to the conservative side. As a result, they are trimming ests: For March quarter, modeling $965 mln in revenue and $0.26 (from $1 bln and $0.30) vs. consensus at $1 bln and $0.29. For 2008, now at $4.18 bln and $1.25 (from $4.4 blnand $1.35) vs. consensus at $4.4 bln and $1.35. Firm cuts tgt to $30 from $34