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

To: Patriarch who wrote (407)	10/3/1998 10:16:00 AM
From: Patriarch	Read Replies (1) \| Respond to of 6531

Thoughts from the Red Herring: IN BRIEF: BROADCOM'S BUSY DAY By Red Herring Online Staff Red Herring Online October 1, 1998 Broadcom (BRCM) will supply the chips for Scientific Atlanta's (SFA) digital set-top boxes. The deal calls for Broadcom to provide chips for a minimum of 500,000 boxes in 1999. Scientific Atlanta has contracts to provide the boxes to Tele-Communications Inc. (TCOMA) and Time Warner (TWX) as those cable outfits upgrade their systems for digital broadcasts, and eventually, for the two-way capability needed for high-bandwidth Internet access. Last month, Broadcom announced that it had developed a new chip that will combine the circuitry for TV and computer data, taking the place of three chips. The company says the chip will markedly lower the cost of set-top boxes, and boost demand. Also on Thursday, Broadcom said it is planning a secondary stock offering of 3 million shares in hopes of taking some advantage of the stock's soaring value. Broadcom went public in April at $24, and had traded as high as $89.75. Of the shares to be offered, insiders own 2.6 million. Henry Nicholas, president and CEO, and Henry Samueli, cochair and CTO, will each offer 450,000 shares, leaving each with about 10.6 million shares and a 28 percent stake. Broadcom also forecasted that its third-quarter numbers will be a tad higher than analysts had expected. Net income will be between $0.16 and $0.17 per diluted share, the company said. The consensus among analysts was that profits would be $0.14 per share.