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

To: Jack Jackson who wrote (638)	1/19/1999 9:51:00 PM
From: woodside	Read Replies (2) \| Respond to of 6531

Bullish research note by Credit Suisse First Boston (Jan 13). Some excerpts: "Recent wild ride in Broadcom has been driven more by association with Internet/consumerization themes than by any changes to fundamentals ... We are encouraged by SFA's announcement last week that it has shipped considerably more digital set top boxes (these are supported by BRCM silicon) than previously expected (125,000 Explorer 2000 set tops shipped vs . our 50,000 unit estimate). For Broadcom, we view this as a welcome sign that SFA is rapidly liquidating inventory that had accumulated during the latter part of 1998. We believe that business with BRCM's major set top box customers, GI and SFA, remains robust and would not be concerned that second source component suppliers could be named by each of these customers. We have always assumed that when exclusivity with BRCM ended (last year) that both vendors would quickly find an alternative source, with roughly 80% of the business to be retained by BRCM and 20% to go to a second source. What has surprised us is the fact that this has not happened already which speaks to the difficulty of overcoming BRCM's technical competencies." I think they answered some of the questions we've been wondering about. - woodside