Leading semiconductor manufacturer Broadcom Corp. recently revised its guidance for fourth quarter 2013 to better reflect its current expectations in accordance with the present market conditions. The guidance is based on assessment of historical trends and assumptions on information available to the company and is subject to business risks and uncertainties.
Broadcom now expects total revenue to be in the range of $2.0 billion to $2.05 billion. The current Zacks Consensus Estimate for total revenue is pegged at $1.97 billion.
Product gross margins on GAAP as well as on non-GAAP basis are expected to be down 50 basis points to 75 basis points each sequentially in the fourth quarter of 2013. Research & development and selling, general and administrative expenses (non-GAAP) are expected to be up $30 million to $50 million sequentially.
Earlier, Broadcom expected total revenue to be around $1.975 billion. Product gross margins on a GAAP and non-GAAP basis were expected to be down 50 basis points to 100 basis points each on a sequential basis. Research & development and selling, general, and administrative expenses (non-GAAP) were expected to be up $40 million to $60 million sequentially in the fourth quarter of 2013.
Broadcom expects a steady momentum in broadband in the coming quarters, driven by more market penetration in emerging markets and new technology adoption in developed markets. The company intends to work diligently to deliver healthy LTE (Long Term Evolution) revenues in early 2014, while focusing on data center innovation and next generation home video products with HEVC (High Efficiency Video Coding).
In addition, Broadcom continues to drive innovation and engineering excellence across a broad range of communication end markets to help its customers enhance device performance and improve overall power efficiency. The innovative technologies related to connectivity, bandwidth and content enable the company to capture a sizeable market share.
Based in Irvine, CA, Broadcom primarily designs and markets semiconductor components that are used in various applications in network voice, video, and data traffic.
Broadcom presently has a Zacks Rank #3 (Hold). Other notable companies in the sector that are worth mentioning include Advanced Photonix Inc. , Amkor Technology, Inc. (AMKR - Free Report) and Cabot Microelectronics Corp. (CCMP - Free Report) , each carrying a Zacks Rank #2 (Buy).