Wednesday, December 10, 2008
Broadcom Eyes Acquisition Bargains
Irvine-based Broadcom is eyeing technology companies it can buy at a bargain, the firm's CFO said on an analyst call this week. According to Eric Brandt, Senior Vice President and CFO of the firm on a call Monday, it is looking for acquisitions as opportunities arise. On the conference call, Brandt said that the situation is unique today, saying "There are opportunities in the market, particularly going into a down cycle. In every down cycle - there are companies that emerge materially worse--smaller companies, companies without cashflow, companies with a single technology, and those who cannot invest," Brandt continued, "As much as there are opportunities to enhance our competitive position, we will do it." However, the firm said its corporate acquisition strategy hasn't changed: it's looking for good quality engineering teams, companies that accelerate its time-to-market, enhances its competitive position, and if an acquisition would be accretive to its revenue growth.