Broadcom, Freescale post large losses

Broadcom and Freescale posted large fourth quarter losses, and Freescale hinted at more job cuts, as weakness in demand in the semiconductor sector continues.

Freescale posted a $4.03 billion loss for the fourth quarter, impacted mainly by a $3.6 billion write down related to devaluation of its assets, and a far wider loss than the $525 million loss it had in the fourth quarter of 2007. Freescale is also considering ways to get out its wireless handset IC business. Sales in the division fell in the fourth quarter to $64 million, down from $344 million in the third quarter of 2008 and $303 million in the year-ago period. The company also said that it could cut 20 percent of its global workforce, up from the 10 percent it forecast last October.

Broadcom also reported weak fourth quarter numbers, posting a $159.2 million loss, compared to a profit of $90.3 million in the year-ago quarter. The chipmaker beat Wall Street expectations for sales though, reporting a 10 percent rise to $1.13 billion, besting analysts' predictions of $1.07 billion. 

The news comes in the wake of Qualcomm posting lower profits and cutting its 2009 forecast, and Texas Instruments' decision to cut 3,400 jobs.  

For more:
- see this Broadcom article
- see this Freescale article
- see this Freescale article
- see this post

Related Articles:
Broadcom wins round over Qualcomm in patent litigation
Qualcomm posts lower profit, cuts 2009 outlook
TI slashes 3,400 jobs amid plummeting profits
The chips are down; silicon makers cut forecasts

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