Zacks_Analysts' Blog : Broadcom's Series Of Advances - Analyst Blog

Broadcom Corporation (BRCM) recently announced a series of revolutionary innovations at the 2012 International Consumer Electronics Show (CES), which would inevitably endear consumers to its varied product and technology advancements.

Prolific advancements have been made in the product portfolio of devices used at consumers’ homes.

One of these was the launch of the first ever MoCA 2.0-Integrated HD set top boxes and Hybrid IP gateway solutions which was then a SingleLoaded Technology bringing about power efficient, secure and higher bandwidth home networking devices with multi-screen adaptability. Recently, BRCM also integrated Comcast's new Reference Design Kit (RDK) with these set-top boxes to make the TV experience more interactive and personalized for consumers.

Trademark advancement was the launch of BRCM’s Over-The-Top Media Player, which upgrades TVs with the latest internet and network connectivity applications with this 40nm BCM72xx product.

Further, the company earned quite a few important contracts which would play an important role in proliferating its market share in times to come. Among these was LG Electronics, which selected Broadcom to apply Bluetooth products and applications to its TVs.

In addition, the company entered into an agreement with Chinese leading TV manufacturer, Hisense to produce and market Wi-Fi enabled products in China. Furthermore, it joined hands with Qualcomm Atheros Inc., a subsidiary of Qualcomm Inc. (QCOM) to focus on HomePlug technology solutions demands.

The company did not fail to cater to the emerging markets of smartphones and tablets either. The launch of its 1 GHz HSPA Baseband elevated the features of inexpensive 3G smartphones to new heights with its latest design and improved connectivity.

The company also made commendable software advances with its state-of-the-art WiFi Display which allows tablet, laptop and smartphone consumers to enjoy their movie, gameplay and application experiences on a much wider HD screen.

Broadcom’s new Broad R-Reach automotive portfolio will bring about a new era of Ethernet products, whereby advanced automotive solutions such as infotainment and automated driver assistance at cheaper rates will be enjoyed by its customers.

We were witness to a solid third quarter for Broadcom Corp. in 2011 where revenues increased 8.4% year over year to approximately $2 billion and gross profits came in at around $1 billion increasing 8% year over year. The present scenario should push numbers even higher in its expected fiscal 2011 financial results.

We currently have a Neutral recommendation on Broadcom Corp. The stock currently carries a Zacks #3 Rank, which translates into a short-term rating of Hold.