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

To: Raymond Duray who wrote (1108)	3/15/1999 12:18:00 AM
From: Stoctrash	Read Replies (1) \| Respond to of 6531

NO, they are fabless. They use TSMC like many other FabLess chippers. You're on the right track ...this thing is OVER HYPED!! BRCM's words...not mine! sec.yahoo.com "COMPETITION. The broadband communications markets and semiconductor industry are intensely competitive and are characterized by rapid technological change, evolving standards, short product life cycles and price erosion. The Company competes with a number of major domestic and international suppliers of equipment in the markets for cable set-top boxes, cable modems, high-speed networking, DBS and terrestrial digital broadcast, and xDSL. This competition has resulted and may continue to result in declining average selling prices for the Company's products. The Company currently competes in the cable television set-top box market with Fujitsu, LSI Logic, Philips Electronics, Rockwell International and VLSI Technology for communication devices and with ATI Technologies, C-Cube, LSI Logic, Motorola and STMicroelectronics (formerly SGS-THOMSON) in the MPEG/graphics segment. The Company expects other major semiconductor manufacturers to enter the market as the digital broadcast television and other digital cable television markets become more established. A number of companies, including Hitachi, Libit Signal Processing, LSI Logic, Rockwell International, Stanford Telecommunications, Inc. ("STI") and Toshiba have announced that they are developing and plan to introduce MCNS/DOCSIS compliant products in 1998, which could result in significant competition in the cable modem market. In the high-speed networking market, the Company principally competes with established suppliers including Level One Communications, Lucent Technologies, National Semiconductor and Texas Instruments. The Company's principal competitors in the DBS/terrestrial broadcast market include LSI Logic, Lucent Technologies, Philips Electronics, Rockwell International, Sony, STMicroelectronics and VLSI Technology. The Company's principal competitors in the xDSL market include Alcatel, Analog Devices, Globespan, Motorola, Rockwell International and Texas Instruments. The Company also may face competition from suppliers of products based on new or emerging technologies. Many of the Company's competitors operate their own fabrication facilities and have longer operating histories and presence in key markets, greater name recognition, access to larger customer bases and significantly greater financial, sales and marketing, manufacturing, distribution, technical and other resources than the Company. As a result, such competitors may be able to adapt more quickly to new or emerging technologies and changes in customer requirements or devote greater resources to the promotion and sale of their products than the Company. Current and potential competitors have established or may establish financial or strategic relationships among themselves or with existing or potential customers, resellers or other third parties. Accordingly, it is possible that new competitors or alliances among competitors could emerge and rapidly acquire significant market share. In addition, existing or new competitors may in the future develop technologies that more effectively address the transmission of digital information through existing analog infrastructures at a lower cost. There can be no assurance that the Company will be able to compete successfully against current or potential competitors, or that competition will not have a material adverse effect on the Company's business, financial condition and results of operations.

To: Raymond Duray who wrote (1108)	3/16/1999 8:12:00 PM
From: Wizard	Read Replies (1) \| Respond to of 6531

>>"Just wondering, is BRCM involved in the transition to GaAS and SiGer as we inexorably move up the bitrate trail from OC-48, thru 192 and beyond?" That is not Broadcom's bag. Galium is not mass market and won't ever be and Silicon Germanium is a ways out. Broadcom's game is digital set-top boxes, gets a piece of each cable modem sold (2mm cable modems were sold in 1998 and all had BRCM chips) and is big in networking chips. I think BRCM beats the estimate handily but I don't see much upside to the stock (yet). Why? 3Com is the second biggest customer (26% of last qtrs revenues) and COMS blew up this quarter so that is causing some skittishness before the earnings report. Even when the earnings report comes out, you can't give BRCM full credit for GI's business because it is just too big a % of total to be relied upon and grow long-term (GI was 34% of revs last qtr). Scientific-Atlanta will supposedly be a big customer (and ramp nicely) this quarter but the concentration issue will continue to plague BRCM. Until we get a better entry-point, I don't want to bother with BRCM despite good upside to estimates. Looking out to 2001, this is a $1 billion revenue company and news flow should be good. Voice over cable could happen and BRCM would supply chips for this... That would be good news flow. btw, the 200-day moving average is about $43 and the stock is $63 today.... No hurry, IMO but BRCM is a probable long-term winner. The company just has too many focused, smart people to bet against.