This one, if you listen closely, confirms that they are in the DVi 5000+
The DVI-5000+ is EuroDOCSIS-compliant, and thus is only meant for Europe. The DCT-5000 (its North American equivalent), on the other hand, uses a Broadcom graphics chipset. So does just about every other digital set-top box that Motorola/GI makes, not to mention nearly all the digital set-top boxes currrently made by Sony, Scientific-Atlanta, and Pace Micro. Also, while Broadcom's graphics chip may have not gotten into the DVI-5000+, its MPEG-2 decoder probably did, and its cable modem/VoIP gateway chip definitely did...and chances are that the ASP for the cable modem chip is higher than the ASP for the graphics chipset. Also, it should be noted that just last March, Broadcom bought out a company (Stellar Semiconductor) to shore up its set-top box graphics chip efforts.
Then there's also the fact that Broadcom's currently generating revenues, or is set to generate revenues in the upcoming year, from literally a dozen other markets aside from the set-top box graphics chip field. You know, small, meaningless markets like the ones for home networking chipsets, cable modem/DSL chipsets, Ethernet transceivers, SONET framers/transceivers, Bluetooth baseband processors, network processors, satellite/HDTV receivers, VoIP gateway processors, etc. That these markets are often closely related, and that the company tends to generate significant competitive advantages by integrating complementary product offerings into single-chip solutions unrivaled in terms of functionality (something that can't be done by a startup focused on only one or two products...or even a giant with a far smaller product line like TI or Lucent Microelectronics), also can't be ignored.
If you're planning on responding to this post (perhaps with another gem like this? siliconinvestor.com, I hope that you don't bring up any of the generic, run-of-the-mill valuation issues that I've seen a dozen times before. Here's a hint: looking at forward P/Es as well helps when dealing with companies growing sales and earnings at a 100%+ clip.
Eric (a "BRoadCruMb lover" since a split-adjusted $29...still consider it to be the next Intel) |
