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Friday, October 20, 2006

Mixed Reception on Broadcom

Net revenue for Broadcom's (BRCM) third quarter of 2006 was $902.6 million, a decrease of 4.1% from the $941.1 million reported for the second quarter of 2006 and an increase of 29.9% from the $695.0 million reported for the third quarter of 2005. That is above the $900 million estimate.

It does not look like they are giving any formal earnings because of the ongoing options review. The street isn't punishing them at all for it. Broadcome closed up 1.7% at $28.97 yesterday, and its shares were fluctuating between up and down in after-hours trading. Right now they are trying to make heads or tails of the number.

The company does not expect to file its 10-Q by the November 9 deadline.

"Despite the current near-term industry-wide challenges, we continue to experience strong design win momentum," said Scott A. McGregor, Broadcom's President and Chief Executive Officer. "The markets in which we compete continue to be favorable for Broadcom. Our broad technology portfolio enabled us to win new designs across a broad set of large and growing markets, such as digital television, 3G cellular, and next-generation wireless functionality for game platforms."

Jon C. Ogg

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