US chipmaker Broadcom saw its share price tank after scrapping guidance for its full fiscal year, ended November 1, 2020.
Hock Tan, CEO of Broadcom, in prepared remarks, said lack of visibility in the firm's global markets because of the COVID-19 outbreak meant that demand uncertainty was intensifying. "As a result," he said, "we believe it prudent to withdraw our annual guidance until visibility returns to pre COVID-19 levels."
When news broke, investors ran for cover. Broadcom's share price listed on NASDAQ slumped by 11% during the regular trading session.
Tan insisted, however, that the "fundamental semiconductor backdrop" had been improving and that there was no material impact on Broadcom's businesses due to COVID-19 in the first quarter (ended February 2, 2020).
Negative market side-effects of COVID-19 seem to be taking their toll, however, assuming Tan's assertion of an increasingly buoyant semiconductor market is correct.
Broadcom pegged fiscal second-quarter revenue guidance at between $5.55 billion and $5.85 billion, but analysts were apparently forecasting second-quarter revenues of $5.94 billion.
Over the next two years, approximately 60% of service providers (both large and small) will adopt virtualization on a wide scale across their networks, according to the latest survey report from Ovum. Why are providers making these moves? Is there an easy way to start?
Learn how and why service providers are using virtualization to transform their networks. This webinar will look at how providers are leveraging virtualization to create more flexible and agile networks while also providing a better customer experience. Expert speakers from netElastic and Heavy Reading will address the industry drivers for network virtualization, the benefits that can be realized, the challenges to face and the results of virtualization being achieved by providers today.
Key topics will include:
Current network infrastructure and the move to virtualization
Benefits and challenges of network virtualization
How providers can get started
Service provider success stories: the decision to virtualize, the solution, and results