BRCM- This came across newswires yesterday but was not widely distributed. I have a position trade short from higher levels. I think BRCM will have earnings problems going forawrd and would not suprise me to see them go much lower. Doesn't INTC now have a competing product? Joe
Wednesday April 10, 4:11 pm Eastern Time
3Com Ends Marketing, Development Pact With Broadcom
Dow Jones Newswires
WASHINGTON -- 3Com Corp. (COMS) gave formal notice to Broadcom Corp. (NasdaqNM: BRCM - news) (BRCM) that it was ending their agreement involving the joint development and marketing of certain computer-related devices.
According to 3Com's quarterly report filed Wednesday with the Securities and Exchange Commission, the company cited Broadcom's "material breaches" in their agreement over the joint development and marketing of Gigabit Ethernet network interface cards and local area network on Motherboard products.
The filing didn't state what the material breaches were. However, last August 3 Com filed suit against Broadcom to recover $21.1 million plus interest due on a promissory note as well as attorney's fees. According to the filing, Broadcom denied any sums are due under the note.
3Com formed the strategic alliance with Broadcom in 2000.
According to the quarterly report, the products covered by the agreement were considered business-connectivity products. This part of 3Com had sales of $111.4 million in the fiscal third quarter ended March 1 , or 31% of the company's total sales. In the same period last year, sales of the products were $218.8 million, or 35% of the company's total sales.
3Com is a Santa Clara, Calif. , maker of computer-networking equipment while Broadcom is a semiconductor supplier based in Irvine , Calif.
-By Todd Goren, Dow Jones Newswires; |
