Broadcom Corp. (Nasdaq:BRCM) reassured investors Thursday that it will meet analysts' estimates for its fourth fiscal quarter, ending Dec. 31.
Shares in the communications chip maker have been plunging since Cisco (Nasdaq: CSCO) reported earnings; the chip-maker's statements about inventory levels spurred a ripple of analyst actions and falling communications chip stocks.
Broadcom was hit hardest since it gets 17 percent of revenue from Cisco. The company said today's release was in light of the "extraordinary market reaction this week." Analysts have also expressed concern that Broadcom shares are richly valued.
Broadcom CEO Dr. Henry T. Nicholas III stated the company is comfortable with analysts' estimates for sequential quarter-to-quarter percentage revenue growth rate in the mid-teens (which would represent a revenue increase of more than 125 percent over the fourth quarter of 1999) and of pro forma diluted earnings of 31 cents a share.