RC. BRCM has some serious problems,very serious. If I were you guys I would sell this baby quick come Monday. Granted I think this rally goes on into September,but too much bad news coming right now for this stock to hold up.
July 02, 1998
Broadcom Reports Chip Delay
Irvine, Calif.. -- Key silicon supplier Broadcom Corp. alerted cable modem manufacturers this week that Broadcom will stop shipping its 3220-B chip, which had beed devised to fix problems and add functions to its 3220-A chip.
The Broadcom 3220 series handles "media access control" tasks in cable modems, and is a critical data component.
Broadcom instead will move to an integrated chip, cable modem manufacturers said. The development could mean "serious delays" in cable modem availability, one senior MSO executive complained.
Only one cable modem vendor will likely not be affected by Broadcom's chip change: 3Com Corp., which developed its own version of the 3220 "media access control" series.
Broadcom officials were quick to point out that no final decision has been made to leapfrog the 3220B in favor of an integrated chip, and said that cable modem manufacturers essentially jumped to that conclusion incorrectly. "We're gathering information about whether or not to do that, is all," said Henry Nicholas, chief executive officer of Broadcom. He said that since the 3220B would be ready within a month of the fully integrated chip, it may make sense to simply forego the 3220B and instead pack its features into the newer chip.
- 7/2/98
I have never shorted a company,but am tempted to short this one. I may go long ANAD instead,they have an integrated GAAS chip. Does anyone know if this competes directly with BRCM?
Hiram
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