Broadcom withdraws 2020 revenue forecast on coronavirus worries


FILE PHOTO: A sign to the campus offices of chipmaker Broadcom Ltd is shown in Irvine, California, U.S., November 6, 2017. REUTERS/Mike Blake/File Photo

(Reuters) – Broadcom Inc 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% of Broadcom’s revenue in 2019 came from Apple Inc, 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 $5.7 billion, plus or minus $150 million, below analysts’ average estimate of $5.94 billion, according to IBES data from Refinitiv.

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

Reporting by Munsif Vengattil in Bengaluru; Editing by Arun Koyyur

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