Tony Matthews, Re: Y2k factor
It's certainly possible that Y2K has played some kind of role. I've never heard of any such guidance from press releases or analyst reports, however.
I have no doubt that Broadcom as a company is in as strong a position as it has ever been. The markets that they serve will continue to grow. The slowdown of revenue growth is mostly a function of the fact that Broadcom is progressing further along its S-Curve.
When a company gets to be as large as BRCM, and after its revenues have gotten as high as they have, Y-Y comparisons inevitably become tougher. It had $160 million in revenues this quarter, representing an increase of $85 million over the previous year.
To maintain that growth rate this time next year, BRCM needs to add $185 million in revenue. At some point, such growth rates become virtually impossible to maintain.
My philosophy is to catch companies at a certain point along their S-Curve (i.e., early). That's why I'm moving on, not because my fundamental opinion of the company's potential market, competitive position, or strength of products has changed.
Andrew Danielson |
