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Broadcom withdraws revenue forecast over coronavirus worries

Broadcom withdraws revenue forecast over coronavirus worries

Nearly 20 per cent of Broadcom's revenue in 2019 came from Apple

Credit: Broadcom

Broadcom withdrew its revenue forecast for 2020 on Thursday, joining a host of chipmakers that have either cut or pulled their sales outlook due to disruptions in global supply chain caused by the coronavirus outbreak.

Nearly 20 per cent of Broadcom's revenue in 2019 came from Apple, which was the first big technology company to say the epidemic was hurting its production and demand in China.

"We did not see any material impact on our businesses due to COVID-19 in our first quarter. However, visibility in our global markets is lacking and demand uncertainty is intensifying," Chief Executive Officer Hock Tan said.

The chipmaker said it expects second-quarter revenue of US$5.7 billion, plus or minus US$150 million, below analysts' average estimate of US$5.94 billion, according to IBES data from Refinitiv.

Shares of the company, which closed down 11 per cent on Thursday amid a broader market selloff, fell nearly 2 per cent in extended trading.

(Reporting by Munsif Vengattil in Bengaluru; Editing by Arun Koyyur)


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