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$AVGO said that in 4Q17, even as the company foresees sequential revenue declines in other segments, it projects the strong wireless growth to accelerate its consolidated revenue growth sequentially by over 7%. In 3Q17, the company's only greater than 10% direct customer was Foxconn.
$AVGO made its final offer to acquire $QCOM and under the terms of the proposed agreement Qualcomm stockholders would receive an aggregate of $82 per each Qualcomm share, consisting of $60 in cash and the remainder in Broadcom shares. The new offer represents a 50% premium over the closing price of $QCOM stock on Nov. 2, 2017.
$AVGO said the US Federal Trade Commission has requested more information regarding its acquisition plan of $QCOM. The effect of the second request is to extend the 30-day waiting period imposed by the Hart-Scott-Rodino Antitrust Improvements Act of 1976. After $AVGO complies with the request, the regulator has 30 days to complete its review.
$AVGO started shipping StrataXGS Tomahawk 3 switch series, demonstrating 12.8 Terabits per sec of Ethernet switching performance in a single device. The Tomahawk 3 series is the industry’s first shipping product that supports high-density, standards based 400GbE, 200GbE, and 100GbE switching and routing for hyperscale cloud networks.
$XPER's subsidiary Tessera Technologies, Inc. and some of its affiliates have reached an agreement with $AVGO and some of its affiliates, customers and suppliers to settle and dismiss all pending litigation between them. In conjunction with the settlement, $AVGO entered into a new multi-year patent license agreement with Tessera.
$AVGO is seeing strong adoption and ramp of its optical isolation products to continue to drive growth coming from electric vehicles in 2018. The company is also looking forward to fully integrating Brocade over the next few quarters and expect its total OpEx in FY18 including Brocade to remain within the target of 17.5% of net revenue.
Looking into 1Q18, $AVGO expects wireless revenue to continue to grow sequentially as the high demand from the company's North American customers is expected to grow. Additionally for the rest of 2018, $AVGO is seeing significant increase in FBAR content driven by the need for additional filtering at the antenna.
$AVGO expects 1Q18 net revenue to be in the range of $5.22-5.37Bil and gross margin to be in the range of 46.75-48.75%. OpEx is expected to be $1.76Bil, while interest expense and other is expected to be $161MM. Also for 1Q18, the company expects CapEx to be about $210MM, while depreciation expectation is of $130MM.
$AVGO, which recently had a failed takeover bid of $QCOM, swung to profit in 4Q17, driven by a 33% growth in its Wireless communications segment, which makes smartphone parts and chips for iPhones. Profit was $671MM or $1.50 per share for the quarter, while revenue surged 17% to $4.84Bil. Adjusted EPS jumped 32% to $4.59 per share.
Chipmaker $AVGO bids to buy $QCOM for $130Bil. $AVGO's proposal would remain whether $QCOM's pending acquisition of NXP Semiconductors is completed on the present disclosed terms of $110 per NXP share or the deal is terminated. Silver Lake Partners to provide $5Bil convertible debt financing commitment letter to $AVGO to support $QCOM transaction.
Chipmaker $AVGO bids to buy $QCOM for $130Bil, the largest ever acquisition in the history of technology sector if the deal materializes. Under the proposal, $QCOM shareholders to receive $70 per share of each of its rival's outstanding shares; $60 in cash and $10 in shares. Deal is subject to Hart–Scott–Rodino Act in U.S. and regulatory approvals.