Scalable Design Speeds Time-to-Market and Lowers Development Costs for OEMs
Production-ready platform for Broadcom's dual-core M320 LTE SoC
Pin-to-pin compatible with upcoming quad-core M340 LTE SoC to sample in 1H14
Delivers 150Mbps Category 4 speeds on FDD-LTE and TD-LTE networks as well as 42Mbps 3G HSPA+ and 2G
Validated on more than 40 networks and 20 countries for accelerated time to market
Broadcom's fifth generation turnkey platform supports Android KitKat and utilizes the company's pin-to-pin compatible dual-core M320 or upcoming quad-core M340 LTE SoC and best-in-class connectivity and location technology. With complete design reuse between dual-core and quad-core basebands, OEMs can develop multiple devices with the same platform design while lowering engineering costs and accelerating time to market. Certification by leading carriers worldwide and Category 4 (Cat 4) speeds in FDD-LTE and TD-LTE modes enable OEMs to deliver high-performance smartphones with seamless worldwide roaming capabilities.
LTE delivers a significantly enhanced browsing and streaming experience. In fact, LTE users consume 1.5GB of data per month on average – almost twice the average amount consumed by non-LTE users. By offering a turnkey LTE design with 5G Wi-Fi, Bluetooth, location and near field communication (NFC) technologies, Broadcom is enabling consumers around the world to experience faster browsing, shorter download times and more reliable video streaming at unprecedented price points.
"We project that the LTE baseband market will register about 64 percent year-on-year growth in 2014 to reach over 500 million units," said Sravan Kundojjala, Senior Analyst, Handset Component Technologies service at Strategy Analytics. "Broadcom is one of the only players with a mature carrier-ready multimode LTE SoC, the engineering expertise and the worldwide scale required to deploy complete LTE platforms. The new Broadcom turnkey design will help accelerate the adoption of LTE worldwide and make high-performance, yet affordable devices available to the broader market."
"Broadcom's turnkey team achieved a design with a very low cost bill of material (RBOM) to enable handset companies to quickly and efficiently take Broadcom's LTE solutions to market," said Robert Rango, Executive Vice President and General Manager, Mobile and Wireless Group. "In addition, this turnkey design is flexible and allows OEMs to build a wide range of LTE handsets."
Additional Product Features
Cat 4 150 Mbps LTE speeds in FDD-LTE and TD-LTE modes and up to 42 Mbps with DC-HSPA+ 3G as well as GSM/EDGE
BCM2095 LTE RF transceiver enables FDD and TD LTE/3G/2G band support for worldwide roaming
VoLTE and HD voice support
HD display, imaging and graphics for an immersive consumer experience
Pre-integrated with the Android KitKat operating system
Reduces LTE modem power consumption by up to 30 percent for extended hours of use
Broadcom's best-in-class connectivity - 5G WiFi, Bluetooth Smart, NFC and location technologies
Milestone Delivers 2X the Speed of the Fastest LTE Generally Deployed Today
IRVINE, Calif. and ESPOO, Finland, Feb. 11, 2014 /PRNewswire/ -- Broadcom Corporation (BRCM), Nokia Solutions and Networks (NSN) and Finnish operator Elisa today announced the first ever demonstration of LTE Advanced (LTE-A) carrier aggregation Category 6 (Cat 6) data rates of 300 Mbps on a live commercial network in the Nordic Countries. The achievement represents an important milestone for all three companies with the goal of delivering a superior mobile experience to consumers.
The end-to-end test was completed on Elisa's commercial LTE network in Finland with Broadcom's LTE-A Cat 6 technology using inter-band carrier aggregation and NSN's Flexi Multiradio 10 Base Station. The test was performed by aggregating two 20 MHz channels in the 1800 MHz band (LTE Band 3) and the 2600 MHz band (LTE Band 7) to reach speeds of 300 Mbps.
"LTE-A Category 6 is the number one priority for operators as they look to deploy the next speed enhancement to their networks," said Robert Rango, Executive Vice President and General Manager, Mobile and Wireless Group, Broadcom. "The success of this test demonstrates Broadcom's ability to engineer advanced LTE modem features to address stringent carrier requirements for speed and interoperability."
"This live network demonstration with 300 Mbps mobile data speed is a great example of possibilities of the mobile technology. It's a major step towards delivering the best possible experience to our customers. In addition to the extremely high maximum data speeds, it will also offer much more capacity for mobile broadband customers," said Dr. Eetu Prieur, Head of Access Networks from Elisa.
"This test underlines the strong partnership between Elisa and NSN, one that dates back to the world's first GSM network," said Petteri Terho, Account Director at NSN in Finland. "After jointly building LTE networks on 1800 MHz and 2600 MHz, NSN enabled the operator to launch Finland's first 800 MHz LTE network in January this year. Now, in collaboration with Broadcom we have showcased how our technical expertise and best-in-class equipment can help Elisa address subscriber demands in the future."
Broadcom will demonstrate LTE-A Cat 6 data rates on NSN infrastructure at the upcoming Mobile World Congress show in Barcelona, February 24-27.
AMD has collaborated with ARM on a chip architecture system to lower the energy envelope of server-based computing.
The success of Linux in the server world has pushed proprietary Unix and expensive server hardware based on reduced instruction set chips (Risc) to the periphery.
The vast majority of servers shipping today are powered by the ubiquitous x86 processor.
But with datacentre power requirements at a premium, chipmakers and server manufacturers are racing to make a breakthrough in balancing power and performance.
Laptop chips like Intel's Atom processor, is used to power the HP low-powered Moonshot server. This is an x86 compatible design, which means it should be capable of running 32-bit server software. AMD has taken a radical approach, partnering with smartphone processor giant ARM on its rival design.
Chipmaker ARM has been working with AMD to deliver system on a chip (SoC) processors designed for a new generation of servers.
AMD ARM-BASED SERVER SNAPSHOT
Supports OpenCompute platform, microATX motherboard using industry standard blade server housing
ARM-based AMD A1100 series Operon CPU will ship in 2014
Linaro tools, kernel and application support
Server uses 64-bit ARM system on a chip with 8 cores
4 Mbytes L2 core and 8 Mbytes L3 cache
UEFI standard boot with Linux supports Red Hat Fedora
Reference board from AMD provides integrated dual 10 Gbps ports, server encryption, 128 GB DDR3 memory
8 lanes of PCI-Express® Gen 3 I/O
8 Serial ATA 3 ports
KVM and Xen hypervisor available today
These new servers aim to tackle the biggest problem facing today's datacentres, that of power and cooling. They take a radical approach, replacing the x86 compatible processors with a 64-bit derivative of the ARM chip that runs inside mobile phones.
AMD reference server platform, claims to use 20w of power. Scaling up, 176 such servers in a two-rack enclosure based on the OpenCompute server specification would use 3.5 Kw.
“If a 100w processor is replaced by a 25w processor you can pack in more at lower power,” said Suresh Gopalakrishnan, corporate vice president and general manager of AMD server business.
By Q4 2014 AMD said that ARM powered server will start shipping. Market analysts expect that by 2019 ARM processors will account for 20% of server units shipped.
According Gopalakrishnan, almost everything in the digital enabled society ultimately ends up in somebody's datacentre. He said: "There is a lot of data in the cloud and there is a lot of parallelism, plus there is machine learning like Facebook's face recognition and even security."
All of these applications require datacentre computing. "The goal of a datacentre is to pack as much compute in a limited space. Power and space are major factors."
Datacentres are limited by throughput and bandwidth. While many datacentres are designed using one type of server to reduce operational cost, Gopalakrishnan said one size fits all does not work in a datacentre. This is because the processor core needs to wait for I/O such as to request an image from a disc drive. AMD and ARM are tackling this problem by reducing power of the processor core.
Application specific servers
"Predefined, ‘one size fits all’ server platforms are giving way to customised solutions that deliver high performance at the lowest power consumption,” said Frank Frankovsky, chairman and president of the Open Compute Project. “AMD’s contribution to the Open Compute Project expands a growing portfolio of OCP designs that enable utilisation and efficiency gains in datacentre operations."
MORE ARTICLES ON HYPERSCALE SERVERS
Can HP Moonshot deliver blue-sky energy management in datacentres?
RISC technology, ARM processors trending in server virtualization
Will Facebook push Intel chips into SDN and open networking?
WIll open source save the datacentre industry?
Workloads like web services, front end and caching, storage, messaging and big data are suitable for the ARM chip, according to AMD’s Gopalakrishnan.
Moving from general purpose to application –specific servers, could revolutionise the return on investment in datacentres according to AMD and ARM. Unless server power is lowered, datacentres will be unable to cope with the explosion of data that is driving the modern world.
Rather than building monolithic IT stacks, ARM-based servers are designed to run in highly parallel hyperscale configurations, rather like the way Facebook and the search engines operate.
Ian Drew, chief marketing officer, ARM said that by 2017, every month 7.5 exabytes of data will be generated just from phones, an amount equivalent to how many grains of sand there are on the planet. All of this data will be going into datacentres.
He said the ARM-powered datacentre would offer significantly lower power and cooling requirements. "We are seeing 50 to 80% saving in power and cooling," Drew said.
The software ecosystem
There is a software ecosystem for x86 server software. Will such a system be ready for the advent of ARM-powered servers in the datacentre? Gopalakrishnan said: “Software vendors and customers are very interested. We are taking a lot of steps to make sure code is compatible.”
Lenaro is the main initiative to drive software standardisation for ARM-based servers. Linux distributions Ubuntu and Red Hat are available for the ARM server architecture. In terms of software development tools, Lenaro supports the GCC compiler the Lamp web application stack, OpenJava, Hadoop NoSQL database and PHP scripting. According to Drew, Lenaro is compatible with existing datacentre infrastructure, and so it is possible to manage ARM and x86 servers with the same datacentre management infrastructure.
Microsoft Windows Server is the missing component in ARM's server strategy. Microsoft is a member of Open Compute, it has already developed a version of Windows, Windows RT, for ARM and there is now a standard cross-platform programming model for Windows, WinRT . So the core code for an ARM-based Windows Server kernel is likely to already exist. But Microsoft's last attempt at cross platform Windows Server ended in disappointment when in the mid 90s, it stopped development of the Mips, PowerPC and Alpha processor versions of Windows NT OS.
With its $99 Radeon R7 250X graphics card, AMD has added another option for those looking to build a gaming box on a budget.
The Radeon R7 250X's main sales hook, as noted by Hexus, is “competitive 1080p gaming” for under $100. You won't always get buttery-smooth framerates at that resolution, but AMD benchmarks show newer titles such as Battlefield 4 and Call of Duty: Ghosts clearing 40 frames per second.
Specs for the R7 250X include either 1 GB or 2 GB of VRAM at 4.5 GHz, 640 stream processors, 40 texture units, and 16 ROPs. It's a big step up over AMD's R7 250, which is $10 cheaper, though the typical R7 250X card will consume nearly 50 percent more power at 95W.
There are a couple caveats, however: The R7 250X is basically a rebrand of AMD's two year-old Radeon HD 7770 GHz Edition card. It uses an older architecture and therefore doesn't AMD's TrueAudio technology, though it will support AMD's ballyhooed Mantle API, which helps boost game performance through software optimizations. Also, AnandTech speculates that some card makers may pair GDDR3 memory with the 2 GB cards to reach that $100 price point. If that's the case, these 2 GB models wouldn't be worth considering over the GDDR5 models with 1 GB of VRAM.
Graphics cards based on Radeon R7 250X will be available from AMD's partners starting today. However, with Nvidia rumored to be launching cards based on its new Maxwell architecture soon, you may want to wait a little bit longer before figuring out how to build your next rig.
February 10th, 2014, Taipei, Taiwan – BIOSTAR has released the Hi-Fi A88W 3D motherboard based on the new AMD FM2+ socket design that will support AMD Multi-Core (x4, x2) socket FM2+/FM2 processors AMD A-series/ E2-series processors.
Using the AMD A88X Chipset, the Hi-Fi A88W 3D, featuring Puro HiFi audio technology, brings 4 DIMM slots supporting DDR3 ram. It uses the newest SATA 6Gb/s bus which is twice the speed of current SATA 3G connections along with USB 3.0. There is support for AMD Dual Graphics Technology and the board uses 100% X.D.C solid capacitors.
The Hi-Fi A88W 3D will give users the “6+ Experience”. The first, Audio+ includes audio features from BIOSTAR which are extensive with the following audio features: 3D Audio, True Blu-Ray Audio, 3D HiFi Amp and 3D Smart Ear.
Video+ features support for full HDMI 3D 1080p and the motherboard has a Dual-Link DVI port for resolutions up to 2560×1600.
Speed+ features include support for PCI-E 3.0 technology and SmartSpeedLAN which is a free software application that monitors and manages your PC’s network behavior. There is also Charger Booster is the fastest and most efficient charger solution for apple devices such as iPads and iPhones.
Protection+ features include USB Overcurrent Protection, an ESD protection (Electrostatic Discharge) safeguard that prevents the USB Port from providing overcurrent. In addition, there are OVER-Current Protection, OVER-Voltage Protection, and OVER-Heat Protection safeguards.
Durability+ gives you Low RdsOn P-Pak MOS is a low resistance design that can significantly reduce the current in energy loss and the uses of a moisture-proof PCB. Computers are often used in humid areas (such as coastal climates).
Lastly, DIY+ users are taken care of with BIOSTAR fully supporting the user in many innovative ways such as with UEFI BIOS stands for Unified Extensible Firmware Interface (UEFI) and BIO-Remote 2 which gives users a better Home Theater environment.
The chips are set to be made using 28nm process technology.
Thanks to extensive work that AMD and other partners of ARM have already accomplished, the 64-bit ARMv8 microprocessors for servers will be supported by a number of operating system vendors, including Canonical, Red Hat and SUSE, while virtualization will be enabled through KVM and Xen.
Operating system support is supplemented with programming language support, with Oracle and the community-driven OpenJDK porting versions of Java onto the 64-bit ARM architecture. Other popular languages that will run on AMD Opteron A-Series processors include Perl, PHP, Python and Ruby. The extremely popular GNU C compiler and the critical GNU C Library have already been ported to the 64-bit ARM architecture.
Through the combination of kernel support and development tools such as libraries, compilers and debuggers, the foundation has been set for developers to port applications to a rapidly growing ARM 64-bit server ecosystem.
The AMD Opteron A-series development kit is packaged in a micro-ATX form-factor. It features AMD Opteron A1100, four RDIMM slots, PCI Express connectors configurable as a single x8 or dual x4 ports, eight Serial-ATA connectors, standard UEFI boot environment. The kit comes with Linux environment based on Fedora, which provides developers with a rich set of tools and applications; standard Linux GNU tool chain, including cross-development version; platform device drivers. In addition, the devkit is loaded with Apache web server, MySQL database engine, and PHP scripting language for developing robust web serving applications as well as Java 7 and Java 8 versions to provide developers to work in a 64-bit ARM environment.
AMD Unveils More Details Regarding ARM-Based Opterons, Plans Sample Shipments in Q1
[01/31/2014 07:09 PM]
by Anton Shilov
Advanced Micro Devices has revealed additional details about its upcoming server-class Opteron microprocessors code-named “Seattle” with ARMv8 micro-architecture and said it would ship samples of the chips to software makers this quarter.
“The needs of the data center are changing. A one-size-fits-all approach typically limits efficiency and results in higher-cost solutions. The new ARM-based AMD Opteron A-Series processor brings the experience and technology portfolio of an established server processor vendor to the ARM ecosystem and provides the ideal complement to our established AMD Opteron x86 server processors,” said Suresh Gopalakrishnan, corporate vice president and general manager of the AMD server business unit.
AMD Opteron A1100 “Seattle” system-on-chips will be commercially available in the second half of 2014. As a part of the plan to prepare for the launch, AMD this quarter will ship the software development kits (CPUs, mainboards, etc.) to select software developers. The company also announced that it would contribute a new micro-server design using the AMD Opteron A-series chips to the Open Compute Project, as part of the common slot architecture specification for motherboards dubbed “Group Hug”.
The Opteron A1100 SoC feature to eight ARM Cortex-A57 64-bit general-purpose processing engines with up to 4MB shared L2 cache and 8MB shared L3 cache; the system-on-chip also features numerous offload engines, such as server caliber crypto and data compression co-processors. The chips integrate server-class dual-channel memory controller that supports up to 128GB of DDR3 or DDR4 ECC memory as unbuffered DIMMs, registered DIMMs or SODIMMs. Additionally, AMD Opteron A1100 SoC has broad integrated I/O, including eight PCI Express 3.0 lanes, two 10Gb/s Ethernet ports, Freedom fabric as well eight Serial ATA-3.0 ports. The chips are
Samsung sets S5 event for Feb. 24, reportedly preps variants • 2:07 PM
Samsung (SSNLF) has sent out invites for a Feb. 24 event at the Mobile World Congress that's expected to feature the launch of the Galaxy S5. Separately, Korean and Indian sites indicate the S5, like the S4, will eventually be accompanied by a water/dust-resistant Active version, and a Zoom version featuring a camera with an optical zoom.
The timing of the S5 event is three weeks ahead of when the S4 launched last year.
The S5 is expected to have ~5.25" display with a whopping 2K (2560x1440) resolution, a 16MP camera, and a fingerprint sensor. It might also ship in both a costlier metal version and a cheaper plastic version.
The launch of Samsung's next flagship will follow a downbeat Q4 report, and a reported deal with Google in which Samsung agreed to tone down its efforts to offer custom apps/UIs for its Android hardware.
Samsung is facing stiffening competition from Chinese OEMs as Android sales continue seeing a mix shift towards cheaper hardware (often sold in emerging markets). Following an epic rise from 2011-2013, IDC estimates Samsung's smartphone share fell 30 bps Y/Y in Q4 to 28.8%.
New LTE deals by MWC in Feb. Sept, Oct, Nov calls look great as Brcm will have shipped M320, M320+, 11ac, GPS, NFC, Trident II, LTE base station chips in huge volume by then. We should see $35 in a few mos.
NEW DELHI: Semiconductor solutions company Broadcom is focusing aggressively on the Indian wearable technology segment with heavy investments.
The company said that it sees a huge opportunity in the wearable space and has already started working with a big Indian company in the wearable space. "We have started working with a one big company, which has an appetite for wearable kind of stuff to enhance their solutions. Another company we are working with is a startup. We as a company are excited about both," Rajiv Kapur, Managing Director of Broadcom India told ET Telecom.
The executive says that the company is investing in making the technology simple in the country. "We have strategically starting to get exposure to some high hitting India customers that we think have potential," he adds.
According to him, the company has also simplified its software solutions and made it available on the internet, which people/developers can self-sign and download, without NDA.
Wearables space is growing too fast globally. The segment falls under the IoT (Internet of Things) space, which also includes home automation and M2M communications.
Globally, the growth of wearable devices and IoT applications are being largely driven by innovations in wireless technologies such Wi-Fi, Bluetooth Smart, NFC, and GPS. And, Broadcom, through its solutions, plays around these technologies.
Kapur reckons that the barrier entry is very low in the wearable segment. "It doesn't take big brands to enter the market. Brands emerging out of wearable segment are unknown today. And, we can't even predict, which one is going to win," Kapur said.
"Wearable breaks out all the possible obstacles such as investment, barrier to entry and technology know-how. We have seen new investment models coming up in this segment," Kapur informs.
According to market research firm ABI, the wearables market is expected to hit $6 billion by 2018.
accelerated networking growth rates for arguably the proprietor of the world’s best switch-silicon portfolio.”
Kevin Cassidy, Stifel Nicolaus: Reiterates a Buy rating, and raises his price target to $34 from $32. “Longer term, management expects revenue growth driven by new product cycles in networking (Ethernet Switching), broadcast (UltraHD and HVEC) and mobile (5G WiFi and LTE). In our view the broadcast and mobility markets may be slower, meaning 6-12 months to develop into significant revenue.”
Glen Yeung, Citigroup: Reiterates a Neutral rating, and raises his price target to $33 from $30. “. Given Broadcom’s penchant to guide conservatively, we suspect their modestly below consensus (-5.3% vs. cons. -4.5% q/q) revenue/GM/OM/EPS guidance will not deter bulls. Indeed setting up potential for another beat is momentum in China wireless infrastructure (the best opportunity for chipmakers in 1H14), enterprise momentum (augmented by a Trident product cycle), and ultra-HD momentum. However, while Broadcom is optimistic about 2H14 outcomes for mobile and wireless (connectivity and baseband), connectivity inventory build (ostensibly at their 2 largest customers) and 3G pricing pressure (that may obviate gains made in LTE), generate concerns. For 1H14 we continue to “go with what you know” and therefore favor wireless infrastructure names (ALTR, XLNX, FSL, IDTI) and memory (MU) and are staying away from handset names (AAPL, BRCM).”
We are estimating total baseband revenue of around $800m for CY14 (including 3G). The company expects connectivity to grow in 2014 despite increasing competition from Qualcomm and Marvell and slower growth in the high-end smartphones.”
Quinn Bolton, Needham & Co.: Reiterates a Buy rating, and a $33 price target. “Notably, the data center business increased 50%+ Y/Y and now accounts for ~1/3 of Infrastructure sales. Demand for the Trident II switch solution remains robust [...] After announcing its first LTE design win at\ analyst day, BRCM is now shipping its Cat4 dual-core LTE SoC. The company remains on track to sample its quad-core LTE SoC during 1H14 and its Cat6 LTE-A thin modem in mid-2014. Importantly, management stated the company now has multiple LTE design wins across multiple customers.”
Christopher Rolland, FBR & Co.: Reiterates an Outperform rating, and a $34 price target. “While there was much to like, there was another side of the coin, as we note operating margins for mobile have fallen from double digits historically to mid single digits. While this should improve (as the segment is currently bearing costs from the Renesas acquisition with little contributing revenue), we still think there is an off chance it may dip into negative territory next quarter. While we have always believed enterprise networking profits could be 2x (or even 3x) that of mobile, we did not believe we would have line of sight in 2014. Additionally, we are growing increasingly skeptical of management’s guidance for mobile growth as 2014 appears increasingly back-end loaded. Lastly, Broadcom’s gross margin results and guidance were slightly disappointing, particularly given the favorable mix of higher-margin products. Overall, we believe BRCM can move into the mid $30s over time, as integrated cellular platforms coalesce around the company and others (e.g., QCOM). Additionally, we now believe we are on the precipice of a massive movement toward SDN that should drive accelerat
Bobby Burleson, Canaccord Genuity: Reiterates a Buy rating, and a $35 price target. “Although BRCM is treated as a wireless play, we note that roughly half of the company’s revenues remain outside of that vertical and these differentiating businesses are showing strong performance. Infrastructure and Networking, a higher operating margin segment for the company, delivered upside to consensus expectations at $576M vs. $561M according to Factset. Similarly, broadband showed upside with $548M vs. $531M. Of course, BRCM’s largest vertical is Mobile and Wireless at almost half of total company revenue. Here, BRCM delivered some upside as well ($940M vs. $921M), and we expect that to continue as platform solutions ramp in new design wins. Consistent with the investor focus on this business, we believe MWC will be a positive catalyst for BRCM as the company should be able to demonstrate strong design win traction at the show, boosting investor confidence in momentum for Mobile and Wireless through the remainder of 2014 [...] While guidance is slightly below consensus, we expect upside from mobile and wireless platform solutions on continuing design win momentum and new phone launches. We expect MWC to be a positive catalyst for the shares.”
Romit Shah, Nomura Equity Research: Reiterates a Buy rating, and a $33 price target. “Broadcom is already shipping dual-core LTE SoC to Samsung and expects to start sampling quad-core SoC in 1H and advanced LTE thin modem in early 2H. The company indicated that it has design wins at multiple OEMs. The company also expects to get better ASPs on WiFi from adoption of 802.11ac in smartphone this year. We believe the Mobile World Congress event next month could be a catalyst for the stock, where the company may announce additional design wins or OEM customers. While Broadcom is already shipping LTE chips, a meaningful LTE ramp won’t materialize until 2H14. We estimate that LTE SoC shipments would contribute around $180-200m in 2014. We are
Stacy Rasgon, Bernstein Research: Reiterates an Outperform rating, and a $33 price target. “Gross margin guidance was the one disappointment on the call. It is apparent that pricing and margins in the residual 3G cellular business are reaching extremely low levels. However, this also suggests a potential tailwind as 4G revenues pick up in the second half. On the surface, Broadcom should have had a margin tailwind, as they are guiding their wireless business down more than the others. However, margins are set to fall by 50-100 bps, due to mix within the wireless business itself, mostly due to the company’s residual 3G cellular business. This suggests that 3G pricing and margins, which have been the primary cause of baseband disappointment over the last few quarters, are continuing along a steep downward trajectory (and indeed, must be reaching extremely low levels). However, this does open up the possibility of a margin tailwind assuming Broadcom’s 4G business ramps in the second half. While the jury is still out (one has to wonder what pricing over the long term will look like), at least for now the company indicated that their lowest-priced 4G offering has an ASP higher than their most expensive 3G offering. Certainly something to watch for as we move through the year.”
By Tiernan Ray
Shares of chip maker Broadcom (BRCM) today closed up 55 cents, or 1.9%, at $29.76, after the company last night reported Q4 revenue and earnings per share that topped analysts’ estimates, and a revenue outlook for this quarter slightly below consensus.
Following the report, R.W. Baird’s Tristan Gerra, who has an Outperform rating on the shares, and a $35 price target, this afternoon offered up some tidbits gleaned from the company’s 10-K filing with the SEC:
Samsung [Electronics (005930KS), Broadcom's top customer, generated 21.3% of revenues in 2013, up from 17.3% in 2012 and 10.0% in 2011 [...] Apple (AAPL) generated 13.3% of revenues during the year, versus 14.6% in 2012 and 13.1% in 2011 [...] R&D as a percent of revenue increased to 29.9%, up from 29.0% in 2012 [...] The 3.0% YoY increase in Broadband Communications revenue was primarily driven by higher sales of set-top box products, partially offset by lower sales of digital TV, Blu-ray Disc, and broadband modem products [...] The 2.9% YoY increase in Mobile & Wireless revenue was mainly driven by higher sales of wireless connectivity products and cellular SoCs, partially offset by lower sales of discrete multimedia coprocessor products [...] The 12.1% YoY increase in Infrastructure & Networking revenue was primarily driven by higher sales of Ethernet switches, PHYs and controllers, as well as communication processor and wireless infrastructure.
Elsewhere, bulls were trumpeting what they viewed as increasing dominance in selling chips for network switching equipment, and a potential payoff in mobile chips from the company’s baseband processors, which it is challenging the reigning heavyweight, Qualcomm (QCOM). Bears, however, believe success in mobile continues to be a wait-and-see matter.
There were scattered instances of price target increases, and some minor adjustments to estimates.
Next-generation products could provide a lift for Broadcom's (BRCM) wireless business in the second half of 2014, analysts say, with the chipmaker also expected to gain from its push into high-speed communications networks.
Broadcom stock rose Friday after the chipmaker late Thursday reported Q4 revenue and EPS narrowly ahead of lowered analyst expectations amid slowing growth for smartphone makers Samsung and Apple (AAPL).
Broadcom's stock has fallen more than 15% since May, but shares were up more than 4% in morning trading in the stock market today, as some analysts published upbeat reports despite the company's recent struggles.
"We think sentiment has bottomed and will start to improve with a new set of product cycles that will start to deliver growth," wrote Jefferies analyst Mark Lipacis, who said he expects average selling prices for Broadcom's chips to improve in the second half of 2014.
He also said Broadcom will get a lift from next-generation Wi-Fi devices and new 4G LTE chips.
"We believe the Mobile World Congress event next month could be a catalyst for the stock, where the company may announce additional design wins or customers," wrote Nomura analyst Romit Shah.
William Blair & Co. analyst Anil Doradla says the company continues to make progress in getting 4G design wins for its chips. He said in a report that "Broadcom has been in catch-up mode and time will tell whether 2014 is the inflection point in the business."
Broadcom has been viewed by some analysts as a takeover target of Intel (INTC), as IBD has reported.
Susquehanna said Broadcom's (BRCM) inline Q4 results were not surprising given the tougher than expected handset environment. The firm expects the company to benefit from content increases form Apple (AAPL) and Samsung design ramp and thinks they are . Shares are Positive rated with a $35 price target.
The single chip solution allows Dune HD to deliver seamless multi-room DVR viewing while reducing cost and power requirements
News | CIOL Bureau
CSTB 2014, MOSCOW, RUSSIA: Broadcom Corp. announced that Dune HD, a global leader in high-performance digital media players, has selected Broadcom's BCM7356 satellite system-on-a-chip (SoC) for its next generation set-top box (STB) deployments.
With integrated Ethernet connectivity and interface options to connect with Broadcom's Wi-Fi and powerline solutions, the single chip solution allows Dune HD to deliver seamless multi-room DVR viewing while reducing cost and power requirements.
Broadcom's BCM7356 high definition (HD) satellite SoC allows multiple users to store, time shift or access content from multiple devices throughout the home, driving the transition to a more connected and interactive home network environment. Unique HD FastRTV channel change acceleration technology improves channel change speeds by up to 500 percent.
"As home subscribers around the world continue to consume more HD content simultaneously via multiple devices, demand for high performance single chip solutions is on the rise," said Nicholas Dunn, Broadcom VP of Marketing, Broadband, Direct Broadcast Satellite (DBS). "Our HD satellite SoC with support for multiple formats enables Dune HD to deliver superior quality HD video throughout the home."
"Our company is renowned for delivering the very best in networked digital media devices," said Konstantin Dyshlevoy, Dune HD president and CEO. "Broadcom's highly integrated single chip design provided the innovation we required to meet growing demand for simultaneous, multi-room viewing while reducing power, complexity and overall cost."
Dune HD offers an array of high-quality digital media players for both consumer and commercial markets. The product line ranges from low-cost, compact STB designs to professional-grade universal media players with internal hard drive bays, optical drives and full internet and content connectivity.
Record Revenue for Broadcom
Thursday, January 30, 2014
Irvine-based chipmaker Broadcom Corp. on Thursday reported fourth quarter revenue and earnings that beat Wall Street expectations and provided a revenue target for the current quarter just below estimates.
The company posted sales of $2.06 billion, down less than 1% from a year ago.
Analysts on average had forecast sales of $2.02 billion.
Adjusted profits topped $366 million, down 20.7% from a year earlier.
Wall Street had expected an adjusted profit of $323.7 million for the quarter.
The company posted record full-year revenue in all three of its business groups: broadband communications; mobile and wireless; and infrastructure and networking.
Total revenue in 2013 topped $8.31 billion, up 3.7% from 2012.
Adjusted profits topped $1.66 billion, down 5.6%.
The company’s shares were down slightly in afterhours trading to a market value of $16.59 billion.
Broadcom specializes in communication chips that go in tablets, smart phones, set-top boxes, broadband modems, networking gear and other products.
The company enters 2014 with an eye towards penetrating the LTE market with its first set of offerings, as well strengthening its position in the ultra HD segment, data center infrastructure and the burgeoning ecosystem of connected home and work devices.
Broadcom provided guidance on revenue, gross margins, and research and development for the current quarter.
The company projected sales between $1.9 billion and $2 billion in the March quarter, just below analyst expectations of $2.02 billion.
Gross margins, a key measure for technology companies, are projected to be in the range of 51.6% to 52.1% in the current quarter, down from 52.6% in the December quarter.
Spending on research and development is projected between $717 million and $737 million, up from $702 million in the recently ended quarter.
Broadcom on Thursday also announced that its board approved a 9% increase to its quarterly dividend to 12 cents a share.
hosting an analyst open house at Mobile World Congress in Barcelona, and that will be on February 24 at 3 p.m. local time
LTE is a big factor for us there. Our lowest price LTE product is significantly above our highest price 3G product, and so it’s definitely an ASP mix pickup as we launch LTE, and that’s really key, I think, to getting this business in good shape, is getting a good, strong launch with LTE this year. And we believe we’ve won a number of high volume designs, and our expectation is that we should be able to deliver our goals this year, based on the designs we’ve already won.
And of course we’re always looking for some more upside on that, but we need to carry that forward into next year. And we’ve got a lot of new products coming out this year. We’ve told you about some of them, which include not only the quad core, the CAT4, but moving to CAT6 and moving to full SOCs. And we’ve got some interesting products over the course of this year, and some we haven’t talked about yet.
So our team’s working hard, and I think you’re going to be pleased with some products that we have this year. And some of the ones we’ve shared with customers so far, they tell us that we have great competitive products, and to the extent we can get those out there and launch them with customers, I think that’s the real key to getting decent ASPs in the cellular business, and turning baseband business into something we’re proud of.