Sep. 4, 2013, 1:29 PM
- Analyst Srini Pajjuri sees the purchase of Renesas' 4G LTE baseband chip unit eventually allowing Broadcom (BRCM +1.9%) to become "a viable second source in LTE" after Qualcomm (QCOM +0.9%), an to thereby (as a result of being able to offer more comprehensive solutions) "stem potential share losses" in the Wi-Fi/Bluetooth combo chip space.
- Strategy Analytics estimates Qualcomm had a 97% share of the LTE baseband market in Q1, as the company's big head start in offering multi-mode (2G/3G/4G) basebands and (through the Snapdragon line) integrated baseband/app processors continues paying dividends.
- However, Broadcom, Nvidia, and Intel are all prepping multi-mode LTE basebands, and are looking to have them inside OEM hardware by early 2014. Broadcom says the Renesas deal will speed up the arrival of its LTE baseband, and also provide it with patents and top mobile engineers. Qualcomm is looking to stay ahead with the help of its Snapdragon CPUs, strong multi-band support, and 4G RF front end.
- Broadcom still dominates the combo chip market, but Qualcomm has scored some noteworthy design wins lately.
Sep. 4, 2013, 7:19 AM
- Broadcom (BRCM) agrees to buy LTE-related assets from affiliates of Renesas Electronics (RNECF.PK, RNECY.PK) for about $164M in cash. The transaction is expected to slice about $0.12 from EPS in the December quarter and $0.10-$0.15 from EPS for FY2014. The purchase is expected to be accretive to earnings in 2015.
- Updating its outlook for the September quarter, the company expects revenue of $2.075B-$2.175B (Street consensus is $2.14B), and gross margins to be up about 50-100 basis points. R&A and SG&A expenses are expected to be "somewhat above" the high end of previous guidance.
- CC at 7:30 ET.
- Press release.
Aug. 26, 2013, 1:49 PM
- VMware's (VMW -0.6%) VMworld product announcements have commenced. The most noteworthy is the introduction of VMware NSX, a management/virtualization platform that combines Nicira's software-defined networking (SDN) platform with the networking/security tools found in VMware's vCloud Suite (they allow virtual networking appliances to be set up). NSX is integrated with VMware's vSphere virtualization platform.
- NSX allows VMware to offer a common platform for managing/configuring physical switches, virtual appliances, and the services delivered over them. It amounts to a fresh shot across VMware partner Cisco's (CSCO +0.4%) bow, since it shifts network intelligence away from Cisco's switches and related management tools, and could make it easier to replace Cisco hardware with commodity gear.
- Cisco, which sold off when VMware's purchase of Nicira was announced, is attempting to counter VMware and other SDN players through its proprietary ONE SDN controller and related onePK API, both of which are set to be supported by the company's entire switch/router lineup.
- Brocade (BRCD -0.8%) Vyatta virtual router unit has also been targeting the virtual appliance market.
- Juniper (JNPR -0.2%), which is taking a more collaborative approach to SDN than Cisco (likely due to its smaller market position), plans to have its switches support NSX. Dell, H-P, and startup Arista are also on board.
- Many of the initial hardware supporters are relying on Broadcom's (BRCM -0.6%) Trident II network processor. The chipmaker has long viewed SDN (thanks to its enabling of commodity switch use) as a growth opportunity.
- Early users of NSX include Citi, eBay, and GE.
Aug. 15, 2013, 1:17 PM
Aug. 12, 2013, 9:38 AM
- F5 (FFIV +3.2%) has been upgraded to Overweight by Barclays.
- NetApp (NTAP +1.1%) has been upgraded to Neutral by Baird ahead of Wednesday's FQ1 report.
- T-Mobile USA (TMUS +1.2%) has been upgraded to Market Perform by Oppenheimer following last Thursday's Q2 report.
- Broadcom (BRCM -1.3%) has been cut to Neutral by Goldman.
- Juniper (JNPR -1.7%) has been cut to Sector Perform by RBC.
Aug. 8, 2013, 7:45 PM
- Goldman strategist David Kostin has identified what he thinks are the top 40 most undervalued stocks; at the time he issued the note yesterday, each stock had at least 20% upside to his price target.
- The list: MPC, ADSK, VTR, CRM, AMT, SPG, HAL, DVN, EXPE, SWN, R, ESV, BRCM, CAM, NBL, WYNN, WYN, NE, VMC, PSX, NBR, CCI, APC, EL, NFX, FSLR, GM, YHOO, CERN, EOG, CTSH, GT, QCOM, MON, VLO, SLB, PCP, AMAT, BMY, NOV.
Aug. 5, 2013, 10:31 AM
- Qualcomm (QCOM -1.7%) has been cut to Neutral by Piper.
- Canadian Solar (CSIQ +9.7%) fresh off selling 5 solar plants, has been started at Buy by Roth.
- Riverbed (RVBD +3.2%) has been upgraded to Outperform by Oppenheimer less than a week after plunging on account of missing Q2 revenue estimates and issuing light guidance.
- Broadcom (BRCM +0.6%) has been upgraded to Buy by Drexel Hamilton. Many other firms have been going in the opposite direction.
- Perficient (PRFT +7.9%) has been started at Buy by Needham in the wake of its Thursday Q2 beat.
- MicroStrategy (MSTR +1.6%) has been upgraded to Buy by Roth a week after posting a Q2 miss.
Aug. 2, 2013, 9:56 AM
- Groupon (GRPN -0.2%) has been upgraded to Equal Weight by Evercore, a long-time bear.
- Chipmakers Broadcom (BRCM -1.4%) and Linear (LLTC -1.4%) have been cut to Neutral by UBS. Broadcom received 7 downgrades last week following its Q2 report.
- Guidance Software (GUID -17.3%) has been cut to Sell by Benchmark following its Q2 report and light 2013 guidance.
- ValueClick (VCLK -16.4%) has been cut to Underperform by Raymond James, and to Hold by Needham, in response to its Q2 report and light guidance.
- Citrix (CTXS +0.9%) has been upgraded to Outperform by Credit Suisse.
- Cbeyond (CBEY -4.3%) has been cut to Market Perform by FBR following its Q2 report.
- Automatic Data (ADP -1.2%) has been cut to Neutral by Susquehanna following its FQ4 report.
Aug. 1, 2013, 3:11 PM
- Sources tell ex-WSJ reporter Jessica Lessin Apple (AAPL +0.7%) has acquired Passif Semiconductor, a chipmaker developing radios for the low-power Bluetooth LE (i.e. Bluetooth SMART) standard, which was created with embedded and wearable computing applications in mind.
- Two weeks ago, the FT reported Apple is ramping its iWatch design/engineering efforts. Passif's chips are a logical fit for them.
- The acquisition is noteworthy for Broadcom (BRCM +0.2%), given the company is the Wi-Fi/Bluetooth/GPS combo chip supplier for the iPhone and iPad, and has been developing its own low-power Bluetooth parts.
- Pac Crest recently stated there's a growing risk Apple will abandon Broadcom in favor of home-grown combo chips, given Apple's hiring activity and Texas Instruments' $315M sale of wireless connectivity IP to an unnamed OEM (believed by some to be Apple). If Apple wishes to ditch Broadcom, Passif could provide one piece to the puzzle, but only that.
- Update: Apple confirms it has bought Passif.
Aug. 1, 2013, 12:34 PM
- Though Q2 EPS met estimates and revenue was slightly above, Entropic (ENTR -13.1%) guided on its Q2 CC for Q3 revenue of $55M-$57M and EPS of -$0.07, well below a consensus of $79.8M and $0.03. The revenue guidance implies a Q/Q drop of 19%-22%, and a Y/Y drop of 36%-39%.
- CEO Patrick Henry: "In the past few weeks, we experienced a number of unexpected challenges within our business."
- Among those challenges: slower-than-expected design win ramps at service providers , and a delayed ramp for a digital terminal adapter (HD-DTA) design win with a "flagship" cable MSO (believed to be Comcast). Entropic says talks with the MSO suggest "the ramp has been pushed out until mid-2014."
- Entropic also says it's "seeing an unrelated slowdown" with another MSO (Time Warner Cable?) due to a capex issue it thinks will be resolved in Q1 2014, and is seeing "short-term weakness" at top customer DirecTV due to a new inventory management system.
- Entropic is losing share to Broadcom (BRCM +0.2%), which saw 6% Q/Q Q2 growth for its broadband chip ops, and is guiding for flat Q/Q growth in Q3.
- Q2 results, PR, CC transcript
Jul. 24, 2013, 12:45 PMMidday top 10 gainers: ZHNE +31%. FRO +22%. MFB +23%. CDTI +19%. TOPS +24%. VMW +16%. MHH +16%. HLIT +14%. USU +13%. VICR +13%.
Midday top 10 Losers: SCKT.PK -20%. NBS -16%. BRCM -16%. VOCS -15%. WLT -14%. TNGN.OB -14%. CEVA -15%. SRPT -14%. IRBT -14%. PLCM -12%. | Jul. 24, 2013, 12:45 PM | Comment!
Jul. 24, 2013, 11:32 AMBroadcom (BRCM -14.4%) tumbles after getting hit with 7 downgrades in response to its Q1 revenue miss and light Q2 guidance. The chipmaker stated on its Q2 call combo chip, emerging markets set-top, and networking chip sales were healthy, and disagreed with recent reports about pending combo chip share loss (a ~75% share was cited for 4G phones). But Broadcom also mentioned "relative softness" was seen in its mobile baseband chip sales; the company has faced stiff competition here from Qualcomm and MediaTek. RBC, cutting shares to Sector Perform, is worried about a pending 4G baseband being late to market. A $507M charge was taken on the $3.7B NetLogic acquisition due to soft sales for certain product lines. | Jul. 24, 2013, 11:32 AM | Comment!
Jul. 24, 2013, 9:16 AM
Jul. 23, 2013, 5:30 PM
Jul. 23, 2013, 4:08 PM
Jul. 23, 2013, 12:39 PMThere's a growing risk Apple (a long-time Broadcom combo chip client) will use home-grown combo chips in the future, says Pac Crest's Michael McConnell while downgrading Broadcom (BRCM -3.5%) to Sector Perform ahead of this afternoon's Q2 report. McConnell points recent Apple hiring activity, and Texas Instruments' (TXN +4%) disclosure it has sold wireless connectivity tech to a customer. TI, which is exiting the combo chip market, stated on its Q2 call it recorded a $315M gain from the sale, which suggests the customer was a big one. Broadcom is down 8% over the last week thanks to Pac Crest and Barclays; can networking and low-end smartphone chip sales help the company beat lowered expectations? | Jul. 23, 2013, 12:39 PM | 2 Comments
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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