Broadcom CFO Sees No Q3 Quake Impact
LOS ANGELES (Reuters) - Broadcom Corp. (Nasdaq:BRCM - news), the Irvine, Calif.-based
semiconductor company that makes chips for cable modems and digital TV set-top boxes, sees no
impact on its third-quarter earnings from an earthquake in Taiwan that disrupted production there at
major chip factories, its Chief Financial Officer William Ruehle said Tuesday.
''There will not be any disruption in third-quarter results,'' Ruehle said in an interview.
Orders for the September quarter have already been filled.
Broadcom will have to ''wait and see'' what the impact will be on results for the next quarter, he noted. But Ruehle said the
company was well-prepared to handle such emergencies.
Although Broadcom said half of its chips have been produced by Taiwan Semiconductor Manufacturing Co., the company was
ready to shift output to another contractor in Singapore and to ship product from inventory, Ruehle said.
Ruehle said Broadcom's assembly and test operations, which cut wafers and prepare chips for shipping, are located in Hong
Kong and Singapore, and were not affected by Tuesday's quake in Taiwan. The earthquake measured 7.6 on the open-ended
Richter scale and killed more than 1,700 people.
Taiwan Semiconductor said early analysis showed it could lose about 10 percent of this month's wafer production, but that its
buildings, water and power systems and computer networks appeared undamaged.
Shares in Broadcom fell nearly 5 percent Tuesday, losing $5.1875 to close at $104.125 on Nasda |
