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Technology Stocks : Broadcom (BRCM) -- Ignore unavailable to you. Want to Upgrade?

To: Ibexx who wrote (6141)	1/10/2002 1:15:21 PM
From: Ibexx	Read Replies (1) \| Respond to of 6531

Broadcom Announces Return to Profitability, Deals for Its High-Tech Chips Knight Ridder Open, 1/10/2002 3:09:00 AM IRVINE, Calif., Jan 10, 2002 (The Orange County Register - Knight Ridder/Tribune Business News via COMTEX) -- Broadcom Corp. shares surged Wednesday as the company said it would return to profitability this year and announced partnerships that put its chips in next-generation devices. Chief Executive Henry T. Nicholas III told analysts at the Morgan Stanley Dean Witter & Co. investor conference in Scottsdale, Ariz., that the communications chip maker will be profitable again this year. Nicholas also said the company would return to its former 50 percent growth rates and has enough cash on hand to avoid going to the equity markets to raise capital. Broadcom's stock rose about 4 percent Wednesday to close at $51.43 per share, the first time it has closed above $50 since February. The stock lost about 51 percent of its value in 2001, falling as low as $18.40, as the company struggled with losses and declining sales. Analysts expect Broadcom to report a loss of about 12 cents per share for the fourth quarter ended Dec. 31, with sales of about $221 million. The company will release results Jan. 23. Nicholas' forecast came at the same time that the devices he has been predicting for years are starting to show up on the market. One of those devices, the Moxi, stole the Consumer Electronics Show in Las Vegas this week as the former founder of WebTV unveiled what is being called the first "convergence box." The Moxi, made by Palo Alto-based Moxi Digital Inc., combines a cable TV set-top box with the features of a personal computer. It enables consumers to record TV shows on a hard drive, send e-mail, and record and play digital music. Broadcom provided the chip that enables the Moxi to process video, audio and graphics and send those signals to the other pieces of the system, said Rich Nelson, senior director of marketing for the company. "We really have the same vision for these convergence boxes," Nelson said. "We've been working with the Moxi folks for more than a year, in a stealth mode while they've been planning to spring this on the world at CES." Broadcom also announced Wednesday that its chip designs would be included in the next generation of Palm Inc. handheld computers to enable them to communicate with other devices over short distances using the Bluetooth data standard. --Bloomberg News contributed to this report. By Chris Farnsworth To see more of The Orange County Register, or to subscribe to the newspaper, go to ocregister.com Ibexx