Broadcom says inventories “ideal”
Given the sales weakness in the wireless semiconductor chain, you might wonder whether inventory is also piling up at Broadcom (BRCM - Annual Report). Broadcom says Q4 inventories almost “ideal” | Reuters.com
Wireless chip company Broadcom Corp. (BRCM - Annual Report) expects to finish its fourth quarter with inventories near an ideal level, Chief Executive Scott McGregor said on Thursday.”We still believe we’re on track for Q4, to close out Q4 with inventories approximating an ideal level for us. So we’re very comfortable with that,” McGregor told an investment conference.
Notice he didn’t say anything about Q1. The market shared our skepticism, sending the stock down 2.5% yesterday and another 1.5% after hours in the wake of the National Semiconductor (NSM) and Xilinx (XLNX) warnings.
Disclosure: William Trent has a long position in SMH.
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