Estimated revenues for 3Q 2007 were $939.6 million up by around 5.8% compared to last quarter. The units of chips shipped during the same period were around 21.5 million for various segments like 802.11x, Bluetooth and broadband. Broadcom contributed around 10% of the quarterly revenues for communications chip market.
Major chunk of revenues during the quarter were from sales of 802.11x and Bluetooth chips which fetched the company about 27% of the revenues. Broadband followed with 23%. Other segments that saw significant revenue contribution were VOIP 20% and Cellular 13%.
Broadcom made some strategic alliances this quarter that will enhance its revenues and stake in cellular market. First of all it was selected by Nokia for supplying single-chip cellular baseband processor for EDGE mobiles. Broadcom also joined the S60 community that gives it access to software, technology and S60 ecosystem resources for developing advanced smartphones based on S60 software which is developed by Nokia. It also joined the LiMo foundation that works on Linux OS for mobiles. Product wise it launched single-chip GPS solution for mobile applications. With all these developments we should see Broadcom aggressively re-positioning in the cellular market.
Other than cellular, entertainment was the main focus during this quarter. Broadcom announced many solutions for various basic and advanced entertainment products. These either add upon a particular capability or bring in something new. It announced products like Digital TV Receiver System, integrated single-chip, single and dual channel, multi-format satellite receivers, 65nm SoC for STBs (Cable, Satellite and IP) and Bluetooth connectivity for STBs. Broadcom’s Blu-ray was selected by Samsung for dual format BD-UP5000 Duo High Definition player. It also announced collaboration with OpenTV for next generation OpenTV platforms to provide Next Generation Cable, Satellite, IP and Terrestrial STB products.
Other important products announced during the period were 65nm based Gigabit Ethernet switches, single-chip WLAN solution and Intensi-fi 802.11n single chip. The commonality in all these solutions launched during the quarter is that they are single-chip and integrated. This will allow solutions to have multi-functionality with reduced eBOM and low power consumption.
Broadcom also completed acquisition of Global Locate a privately held company providing GPS and assisted GPS (A-GPS) chips and software. This will reinforce Broadcom’s position within the cellular market as GPS is getting largely integrated with mobile phones.
3Q07 also saw an end to the tussle between Broadcom and Qualcomm over the patent issue. Ultimately the law upheld the ITC patent remedy of barring importation of Qualcomm chips and certain cellular phones containing those chips infringing Broadcom patents. Broadcom won the Federal Antitrust appeal and the US Appeals court also denied stay over the ITC order. Broadcom was awarded Double damages of $39.3 million for past infringements.