Broadcom Pulls Annual Sales Forecast on Virus Uncertainty
- CEO says too early to assess impact on demand; shares slump
- Company plans to keep wireless unit after Apple commitment
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Broadcom Inc., a chipmaker that supplies Apple Inc. and other large electronics companies, withdrew its annual sales forecast and gave weak near-term guidance, demonstrating how deeply the coronavirus pandemic is poised to hurt demand. The stock slumped 10%.
“The fundamental semiconductor backdrop has been improving, and we did not see any material impact on our businesses due to COVID-19 in our first quarter,” Chief Executive Officer Hock Tan said in a statement. “However, visibility in our global markets is lacking and demand uncertainty is intensifying. As a result, we believe it prudent to withdraw our annual guidance until visibility returns to pre COVID-19 levels.”