Majority of U.S. chip manufacture has provided quarterly revenue prediction that frustrated Wall Street due to slow demand for its mobile-phone chips and affected their shares in Tuesday trading session.
Broadcom Corporation (NASDAQ:BRCM) that said it would cut more than thousand workers as it struggle with decrease orders its chips for mobile. Due to decrease demands for its connectivity chips, in Q3 it the company is planning restructuring to decrease expenses and the cut off is expected to be 1,150 staff out of approximately 12,050 total staff.
Many factors have contributed to the company down fall in the stocks; the company has facing high competition in selling connectivity chips and faster wireless communication for its 4G chips and decrease demands for its products. Broadcom Corporation (NASDAQ:BRCM) shares decrease -0.66% to $27.14 in last trading session.
As far as restructuring is concern, the firm has recorded a $12 million restructuring cost in Q3 and will plan another for $20 million in the Q4 2013. Many analysts on the chipmaker’s quarterly conference call articulated worry regarding its lack of development in launching baseband chips with Long Term Evolution (LTE). This technology offer a fast data transfer pace in smartphones that has become extensively used in the US. Broadcom has also low demand for its mobile devices connectivity chips that handle Bluetooth, GPS and Wi-Fi.
According to Altera Corporation (NASDAQ:ALTR)’s officials in conference call with analysts, predicts flat sales of its chips for military, wireless, auto and industrial customers in the ongoing quarter. Altera Corporation (NASDAQ:ALTR) shares decreased -0.37% to $37.32 in last trading session.
Europe’s biggest manufacture of semiconductors STMicroelectronics N.V. (ADR) (NYSE:STM) declared that the chip used in the high-end mobile has low demands in September quarter particularly in Asia and expect little or no revenue enlargements in upcoming quarter. STMicroelectronics N.V. (ADR) (NYSE:STM) shares fell -1.25% to $8.69 in last trading session.
RF Micro Devices, Inc. (NASDAQ:RFMD) expect the current-quarter revenue will be lower than market expectations, the company estimate the revenue decline due to its wireless infrastructure venture, and Wi-Fi connectivity, down fall. RF Micro Devices, Inc. (NASDAQ:RFMD) shares up 0.98% to $6.16 in last trading session.