Broadcom Expects more in China. Check it out:
(Comtex Business Via Thomson Dialog NewsEdge) GUANGZHOU, Sep 22, 2006 (SinoCast China IT Watch via COMTEX) --Broadcom, the world's largest telecommunications chip design firm, expects its Chinese revenue to grow rapidly thanks to surging demand for next-generation chips for mobile phones, high-definition TVs and wireless networks, one of its top officials said yesterday in Shanghai.
"It will grow at least 20 to 30 percent annually, seeing the market demand," Wang Kai, Broadcom's country manager for China, said during an interview this week.
In 2005, Broadcom's revenue in China was "several hundreds of millions" dollars from "several millions" in 2000, according to Wang, who declined to reveal the actual figures.
At present, Broadcom focuses on enterprise-network, wireless and broadband sectors and its domestic clients include Alcatel Shanghai Bell, Huawei Technologies, ZTE Corp and Lenovo Group Ltd.
The mobile communication, wireless application and broadband-based applications, like voice over Internet protocol (VOIP) and IPTV, are promising sectors in China, Wang said.
"Wireless (on laptop and handset) and broadband are bright spots in the domestic market and they will bring Broadcom solid income," said Li Ke, an analyst at Beijing-based CCID Consulting, a research firm under the Ministry of Information.
China Telecom, the country's biggest fixed-line phone carrier, added 4 million new broadband users in the first half, bringing the total number to 25 million.
Broadcom Corporation is a global leader in semiconductors for wired and wireless communications. Its products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment.
Broadcom provides the industry's broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices.
It designs, develops and supplies a diverse portfolio of products targeted to a variety of wired and wireless communications markets.
Its semiconductor and software solutions are ubiquitous, embedded in cable and DSL modems and digital set-top boxes in the home, digital televisions, high definition DVD players, networking equipment in the enterprise, wireless-enabled laptop and desktop computers, and advanced PDAs and cellular phones, among wired and wireless equipment.
Broadcom is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom Class A shares trade on the NASDAQ National Market? under the symbol BRCM.
Broadcom is one of many high-tech companies that have come under scrutiny from regulators for their handling of stock- option grants. Executives at several other firms have been forced out or are under investigation.
Broadcom, for its part, said it issued millions of stock options early in the company's life as a way to "attract top talent in a highly competitive market. As a result, the company said it paid a much higher ratio of stock to cash to compensate its workers in comparison with larger, more mature rivals.
During the years 1998 to 2003, which will account for most of Broadcom's revisions, the company said it granted 238 million stock options -- 95% of which went to employees not part of the senior management team.
Broadcom began a "voluntary" review of stock-option grants on May 18 in light of "media and analyst reports and investor inquiries."
The company is reviewing all options granted since Broadcom launched an initial public offering in 1998. The review is being conducted by Broadcom's outside legal counsel, but the company could not say when it would finish.
From Shanghai Morning Post, Page 1, Thursday, September 21, 2006
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