* Q4 rev $2.08 bln vs Street view $2.07 bln
* Sees Q1 rev $1.824 bln-$1.976 bln vs Street view $2 bln
* Shares fall to $33.40 i late trade after $33.71 close
By Sinead Carew
NEW YORK, Jan 29 Chip maker Broadcom Corp
warned on Tuesday that first-quarter revenue would
decline from the fourth quarter, sending the company's shares
down almost 1 percent in late trade as investors worried about a
slowdown in the smartphone market.
The maker of chips used in products ranging from television
set-top boxes to smartphones such as Apple Inc's
iPhone, forecast current quarter revenue of $1.824 billion to
$1.976 billion, missing analysts' expectations for $2 billion.
Chief Executive Scott McGregor cited seasonal trends and
macro-economic weakness for the revenue downturn and noted that
wireless would be down slightly more than the company's
broadband and infrastructure businesses.
"Everything will be down roughly about to same as the
midpoint of our guidance. Mobile and wireless might be a touch
lower than that," McGregor told analysts on the company's
quarterly earnings call. But, he said, "the jury is still out
until the Chinese New Year" as sales could pick up in the
shopping season that comes in February.
Bernstein analyst Stacy Rasgon said investors would be
concerned about signs of weakness in smartphones, which have
been a reliable growth engine in technology in recent years.
"The guidance is light and they're seeing everything down.
The open question is how much of the weakness is wireless," said
If wireless is a big part of the problem, investors will
want to know if this relates to a broad slowdown or shifting
market share among smartphone makers such as Apple and its
biggest rival, Samsung Electronics Co Ltd, he said.
"If the smartphone market is slowing down more than people
expect that would be a problem," the analyst said.
Last week, Apple's quarterly results and financial targets
for the current quarter disappointed Wall Street, stoking fears
that it is losing its dominance in smartphones.
Chip makers including Texas Instruments Inc have
also warned of broad weakness in demand but Rasgon noted that
Broadcom typically does better than its competitors as it has a
diverse business and has been buoyed by clients such as Apple.
"In general, people have higher expectations for growth at
Broadcom. It's a little disappointing," Rasgon said.
Softening the blow, Broadcom also announced on Tuesday a
dividend increase of about 10 percent.
Broadcom's fourth-quarter revenue rose to $2.08 billion
from $1.82 billion, compared with Wall Street expectations for
$2.07 billion, according to Thomson Reuters I/B/E/S.
It reported a profit of $251 million, or 43 cents per share,
compared with $254 million, or 45 cents per share, in the
Broadcom shares fell to $33.40 in late trade after closing
at $33.71 in the regular Nasdaq session.