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To: Softechie who wrote (1132)	4/19/2001 12:38:35 AM
From: Softechie	Read Replies (1) \| Respond to of 2155

UPDATE 1-Broadcom Q1 earnings meet lowered analyst estimates -------------------------------------------------------------------------------- (adds CEO comments, closing stock price) IRVINE, Calif., April 18 (Reuters) - High-speed communications semiconductor maker Broadcom Corp. on Wednesday posted first-quarter earnings that met the company's lowered guidance, despite weaker orders from primary customers. Pro forma net income, which excludes merger-related expenses and payroll taxes on stock option exercises, was $24.2 million, or 9 cents a diluted share, down from $44.9 million, or 18 cents a share, in the year-ago quarter. The results met the Wall Street consensus analyst earnings forecast for the Irvine, Calif.-based company of 9 cents a share, according to research firm Thomson Financial/First Call. Earnings estimates from 9 brokers ranged from 7 to 9 cents. Net revenues rose 62 percent year-over-year to $310.5 million from $191.6 million in the first quarter of 2000, but fell sequentially from the fourth quarter when it posted revenues of $376.1 million. Broadcom lowered earnings expectations a month ago to reflect weakness in the quarter from its three major customers: Cisco Systems , Motorola Inc. and 3Com Corp. , which all have been hit by the weaker economy that is taking its toll on the entire tech sector. Shares of Broadcom have underperformed the tech-heavy Nasdaq, falling some 60 percent since the start of the year compared with the Nasdaq's 16 percent decline. In contrast, the Philadelphia semiconductor index <.SOXX> is up about 7 percent from levels at the start of the year. Broadcom shares closed up 15.7 percent on the Nasdaq, up $4.61 to $34.01. In after-hours Instinet trade its share price rose to as high as $36.20. "Looking ahead, as a result of the continued weakness in the communications sector, we have not yet seen improvement in order visibility from customers," said Henry Nicholas, Broadcom president and chief executive officer. He noted in a conference call with analysts this was the first quarter the company was not posting an increase in profit or revenue, and noted that there was an inventory bubble in several of its key markets. Including charges, the net loss for the first quarter was $356.9 million, or a $1.43 a share, compared with a profit of $38.6 million, or 15 cents a share, last year. REUTERS Rtr 21:17 04-18-01