Yes indeed Fred, quite nice numbers.
Newswire (emphasis mine) addresses next Q:
Broadcom 1st-Qtr Net $19.3 Million on Record Sales (Update2)
Bloomberg News
April 20, 1999, 4:19 p.m. PT
Broadcom 1st-Qtr Net $19.3 Million on Record Sales (Update2)
(Adds analyst quote in 4th paragraph, company comment in
10th, 11th paragraphs.)
Irvine, California, April 20 (Bloomberg) -- Broadcom Corp.,
the leading maker of cable-modem chips, said profit rose more
than 150 percent, beating analysts' forecasts, on strong demand
for its data-networking and digital-television set-top box chips.
Net income rose to $19.3 million, or 19 cents a share, from
$7.7 million, or 9 cents, a year earlier. Broadcom was expected
to earn 14 cents, the average estimate of analysts polled by
First Call Corp. Sales almost tripled to $96.3 million from
$35.3 million.
Broadcom is benefiting from the cable-TV industry's upgrade
to digital service that features more channels, improved picture
quality and interactive programming guides. The growth of cable
modems, which provide high-speed Internet access over cable-TV
lines, also boosted revenue.
''I think the story here is the top-line growth,'' said Greg
McClenon, a Preferred Capital Markets analyst who has an
''accumulate'' rating for the company. ''They're in the right
place at the right time and they're executing.''
Broadcom's strength this quarter came in two areas -- its
fast Ethernet transceivers (data-network products) and its set-
top boxes and modems, McClenon said..
Broadcom is the top provider of chips for set-top boxes,
which unscramble cable and satellite signals for TV viewers. The
advanced digital boxes provide some of cable TV's newest services
-- more digital channels, high-speed Internet access and
telephone service.
More Customers
The Irvine, California-based company said it benefited from
a broadening of its customer base, particularly in its networking
business, with new products. During the first quarter, it began
producing in volume high-speed networking products for personal
computers and other devices.
It also expects more growth in the cable-modem market in
coming quarters because an industry group in March began
certifying manufacturers to ensure compatibility of modems.
''Everyone expects it's going to be a very, very large
market,'' said William Ruehle, Broadcom vice president and chief
financial officer. ''As prices come down to sub-$200 and sub-$150
range, I think you'll see a substantial ramp in sales.''
Broadcom's gross profit margin fell to 58.7 percent from
60.9 percent a year earlier. The company has forecast a decline
in this as it sells more and lowers prices, Ruehle said. He
noted, though, the margin was the highest since the 1998 first
quarter.
The per-share earnings for the 1998 first quarter were
adjusted to reflect a 2-for-1 stock split in February 1999.
Broadcom's shares rose 4 3/8 to 64 3/8. It reported earnings
after the close of regular U.S. trading.
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