BRCM ( $39-$44-$39)posts Q2 loss, cuts jobs Circuit and chip company reiterates upbeat tone
Bullshitters!
By Matt Andrejczak, CBS.MarketWatch.com
Last Update: 5:24 PM ET July 18, 2001
IRVINE, Calif. (CBS.MW) -- Broadcom beat revised second-quarter earnings forecasts on Wednesday but shed 200 positions to reposition its integrated circuit and chip business for the remainder of the year.
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Broadcom (BRCM: news, chart, profile) racked up a loss of $41.1 million, or 16 cents per share, on sales of $210.9 million. That compared to a profit of $61.1 million, or 24 cents per share, on sales of $245.2 million in the same period a year ago.
Analysts polled by Thomson Financial/First Call estimated the company would lose 17 cents per share in the quarter.
Including restructuring charges, Broadcom reported a whopping loss of $436.4 million, or $1.73 per share. Those charges amounted to $18.2 million, of which $10 million were non-cash related, the company said.
In Wednesday trading, shares of Broadcom lost $3.27 to close at $39. But the stock gained 85 cents in after-hours trading on volume of 709,100 shares.
Last month, Broadcom warned it expected a higher-than-expected loss amid a shortfall in sales triggered by excess inventories at customers such as Cisco Systems and Motorola.
But on Wednesday, Broadcom Chief Executive Dr. Henry Nicholas reiterated the company's message that its business would improve by the end of the year.
"As we indicated then, we are continuing to see signs that business is stabilizing for the second half of the year," Nicholas said in a prepared statement. "Having a diversified portfolio of products within the broadband communications sector should position us well as these markets begin to improve."
Broadcom is a provider of circuits for cable set-top boxes, cable modems and digital subscriber lines. It makes chip sets for direct satellite companies.
The stock has lost nearly 50 percent of its value so far this year.
Matt Andrejczak is a reporter for CBS |
