Oct. 23, 2013, 9:43 AM
- Cree (CREE -18.4%) has been cut to Hold by Needham, and to Underweight by Stephens, after the company posted mixed FQ1 results and provided FQ2 guidance that was largely below consensus.
- Broadcom (BRCM -8.5%) has been cut to Neutral by Wedbush after providing soft Q4 guidance to go with a Q3 beat, and announcing job cuts.
- Rackspace (RAX +1.8%) has been upgraded to Outperform by Oppenheimer; Q3 results arrive on Nov. 11.
- ARM (ARMH -4.3%) has been cut to Neutral by UBS a day after posting Q3 results.
- AOL (AOL +2.7%) has been started at Buy by BofA/Merrill.
- SeaChange (SEAC +4.2%) has been started at Strong Buy by BWS Financial.
Oct. 23, 2013, 9:11 AM
Oct. 22, 2013, 4:39 PM
- Though Broadcom's (BRCM) Q3 results beat estimates, the chipmaker is guiding for Q4 revenue of $1.975B (+/- 3%), below a consensus of $2.13B. Moreover, gross margin is expected to drop 50-100 bps from Q3's 53.6% (+150 bps Q/Q and +130 bps Y/Y).
- No explanation is given for the revenue shortfall.
- Broadcom also says it's cutting up to 1,150 jobs (inc. some acquired through the Renesas deal). The company expects to record $32M in restructuring costs this year.
- CC at 4:45PM ET. Q3 results, PR.
Oct. 22, 2013, 4:06 PM
Oct. 22, 2013, 3:30 AM
- ARM's (ARMH) net profit +17.4% to £48.5M; revenue and pretax profit come in above consensus.
- Expects Q4 revenue of $290M, "assuming the macroeconomic situation does not deteriorate significantly." Has record order backlog and a "robust opportunity pipeline."
- 2.5B ARM-based chips shipped, +14% on year.
- Broadcom (BRCM) to create a new 64-bit chip based on ARM's technology for enterprise networking applications.
- Licensing revenue +54% to £68M, royalties +16% to £78.7M. Advanced technology enables a higher royalty percentage per chip
- Signs a record 48 licenses with 24 companies in Q3, 11 of which are new customers. Has already signed four large licensing deals this quarter.
- Shares -2.8% in London. (Previous) (PR)
Oct. 22, 2013, 12:10 AM
Oct. 21, 2013, 5:35 PM
Oct. 10, 2013, 7:11 PM
- Chinese site C Technology, which leaked iPhone 5S/5C pictures before the devices launched, reports Apple (AAPL) has cut 5C production in half to 150K units/day (translation). The reported rate implies quarterly output of ~13.7M units.
- Separately, Unwired View reports the 16GB 5C is now going for $489-$539 unsubsidized on the Chinese grey market, well below an official price of $726.
- Mobile analytics firm Localytics has reported the 5S' share of active iPhones dwarfs that of the 5C, whose higher-than-expected unsubsidized prices fueled criticism. Checks indicate 5S demand has been better than expected, and the WSJ reported last month gold 5S production has been raised by 1/3.
- Suppliers that could be affected by a major 5C production cut, assuming the slack isn't picked up by higher 5S output: CRUS, QCOM, BRCM, SWKS, TQNT, RFMD, AVGO.
Oct. 7, 2013, 12:22 PM
- The ruling (.pdf) upholds a Dec. '11 verdict that deemed Emulex's (ELX -0.6%) FCoE storage adapter cards and Fibre Channel switches to be infringing two Broadcom (BRCM -1%) patents.
- The verdict led to an injunction, and then a partial settlement in which Emulex agreed to pay Broadcom a $58M license fee. More recently, there has been speculation Broadcom could make a bid for Emulex, which has reportedly hired Goldman to help find a buyer.
Sep. 27, 2013, 11:33 AM
- Piper's Gus Richard says checks indicate foundries have cut production of Broadcom's (BRCM -2.4%) chips, something he attributes in part to weaker-than-expected Galaxy S4 demand, share losses to Qualcomm (QCOM -2%), and a mix shift towards low-end Chinese smartphones (where Broadcom's combo chip share is lower).
- He also sees Qualcomm being affected by S4 weakness, and thinks its royalty growth will slow as smartphone ASPs are pressured by a shift towards emerging markets sales. Qualcomm recorded a $227-$233 March quarter ASP for royalty-bearing devices, up from $214-$220 in the Dec. quarter.
- TSMC (TSM -1.2%), the top foundry partner for both Broadcom and Qualcomm, is also lower. The company just announced R&D chief Chian Shang-yi, who had been on a shortlist of candidates to replace Morris Chang as CEO, is retiring on Oct. 31.
- Chiang, 82, has said he will retire as CEO next year, but remain chairman.
Sep. 23, 2013, 9:30 AM
- Apple suppliers are responding well to news weekend iPhone sales topped 9M (well above estimates of 5M-6M), and that Apple now expects its Sep. quarter revenue to be at the high end of a guidance range of $34B-$37B.
- CRUS +5.7% premarket. QCOM +1.8%. BRCM +2.4%. SWKS +3.2%. TQNT +4.4%. AVGO +3.3%.
- RF Micro (RFMD) +6.6% thanks to both Apple's news and a Canaccord note indicating the company has grown its RF content share in the iPhone 5S/5C relative to the iPhone 5.
Sep. 20, 2013, 9:24 AM
- On cue, iFixit has posted an iPhone 5S teardown shortly after Apple's latest flagship device went on sale.
- Though no motion sensor supplier is named, Barclays says its initial analysis suggests STMicroelectronics (STM) held onto the gyroscope slot, albeit while adding the evidence isn't conclusive. InvenSense (INVN), expected by many to take the slot, is down 4.3% premarket.
- Parts that are mentioned include a Broadcom (BRCM) Wi-Fi/Bluetooth combo chip and touchscreen controller, a Sony (SNE) rear image sensor (in the past, Apple has used a dual-supplier strategy featuring Sony and OVTI), a Qualcomm (QCOM) baseband modem, RF transceiver, and power management IC, a TriQuint (TQNT) power amplifier module, and two amplifier modules apiece from Skyworks (SWKS) and Avago (AVGO).
- Though the combo chip win was widely expected, Broadcom investors appear relieved about the touchscreen controller win, given rumors Renesas had taken the slot. BRCM +2.4% premarket. TQNT +1.8%.
Sep. 17, 2013, 11:52 AM
- Discussing his upgrade of Broadcom (BRCM +2.6%) to Positive, Susquehanna's Chris Caso declares expectations have been reset thanks to a summer swoon, and that an iPhone 6 launch (expected in Q2 '14) will act as a catalyst.
- Caso also views improving networking chip demand and the purchase of Renesas' 4G baseband chip unit as reasons to be bullish.
- Some other Apple suppliers are also rallying today: CRUS +2.8%. SWKS +1.5%. NTE +2%. Avago is up after catching an upgrade to Outperform from JMP.
- The iPhone 6 is widely expected to feature a larger display, something considered necessary to slow international share losses as demand for large-screen Android phones takes off. Two weeks ago, the WSJ reported Apple is thinking of offering "iPhones with screens ranging from 4.8 inches to as high as six inches."
Sep. 17, 2013, 9:44 AM
- 3D Systems (DDD +2.4%) has been started at Outperform by Credit Suisse.
- Broadcom (BRCM +2.5%) has been upgraded to Positive by Susquehanna.
- Verizon (VZ +0.2%) has been upgraded to Outperform by RBC.
- InterActiveCorp (IACI -1.3%) has been cut to Sector Perform by RBC a week after Daily Beast editor-in-chief/co-founder Tina Brown announced her departure.
- Avago (AVGO +1.3%) has been upgraded to Outperform by JMP.
- Cavium (CAVM -0.8%) has been cut to Neutral by Lazard.
Sep. 16, 2013, 1:16 PM
- Maxim's Ashok Kumar reports ZTE will use a Broadcom (BRCM +2.9%) network processor (NPU) in upcoming edge routers, displacing traditional ZTE supplier EZchip (EZCH -6.6%). While EZchip slumps thanks to Maxim's note and an Oppenheimer downgrade, Broadcom is heading in the opposite direction.
- In its Q2 CC, EZchip stated its sales to ZTE fell 21% Q/Q and 54% Y/Y to $1.7M. However, that was still good for 10% of the chipmaker's Q2 sales. CEO Eli Fruchter added his company "[continues] to see a lot of activity at ZTE," and predicted EZchip's sales to the Chinese networking firm would be up significantly Y/Y in 2013.
- Broadcom's NetLogic unit (recently the subject of a $461M write-down) announced its XLP980 NPU this June to favorable commentary. The chip leverages TSMC's 28nm manufacturing process and delivers 160Gbps of throughput. EZchip's NP-4 chip offers 100Gbps of throughput, and the next-gen NP-5 240Gbps.
- Prior to the XLP980 announcement, SA contributors Value Bulldog and Kerrisdale Capital were already arguing Broadcom's NPU efforts threatened EZchip.
- Discussing its EZchip downgrade, Oppenheimer predicts EZchip's Juniper sales will fall 52%, offsetting a 36% increase in sales to Cisco and a 15% increase for everyone else. It also thinks EZchip's profits could be hurt by 20%-25% if Cisco uses the nPower X1 in future edge routers.
Sep. 12, 2013, 11:54 AM
- Perhaps the most noteworthy announcement involves the introduction of STMicroelectronics' (STM +5.5%) Faroujda transcoding (format conversion) tech, which the chipmaker asserts is the first solution enabling "a home gateway to distribute any type of content to any type of connected device in the home."
- STM has added Faroudja support to several home gateway SoCs. It should help the company better compete against set-top/home gateway SoC rival Broadcom (BRCM +0.7%).
- STM has also announced set-top SoCs supporting UltraHD (4K) video decoding and the next-gen HEVC video-compression format. Yesterday, the chipmaker unveiled gyroscopes optimized for enabling optical image stabilization on smartphones. InvenSense (INVN +1.6%) has been working on similar gyroscopes.
- Broadcom, meanwhile is also rolling out new set-top SoCs supporting 4K and HEVC decoding. CTO Henry Samueli has declared 4K, which could provide the side benefit of boosting demand for high-performance (802.11ac) Broadcom Wi-Fi chips, to be a priority for his company.
BRCM vs. ETF Alternatives
Broadcom Corp is provider of semiconductors for wired and wireless communications. It provides a portfolio of SoCs that seamlessly deliver voice, video, data and multimedia connectivity in the home, office and mobile environments.
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