Broadcom to withdraw the 2020 revenue forecast to feline corona virus concerns

FILE PHOTO: A sign at the head of the office of chipmaker Broadcom Ltd. has been listed in Irvine, California, USA, November 6, 2017. REUTERS/Mike Blake/File Photo

(Reuters) – Broadcom Inc. withdrew its sales forecast for 2020 is on Thursday, joining a host of chipmakers that are either cut or pulled the sales outlook is a result of the disruptions in the global supply chain caused by the corona virus outbreak.

Up to 20% of Broadcom’s revenue by 2019, came from Apple Inc., which was the first major technology company to say that the disease was the loss of production and demand in China.

“We did not have a material impact on our business by COVID-19 in the first quarter of the year. However, the visibility in our markets around the world, it is a question of uncertainty has been the intensification of the Chief Executive Officer Hock Tan said.

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

The company’s shares, which closed down 11% on Thursday amid a broad market selloff, was down nearly 2% in extended trading.

Reporting Munsif Vengattil in Bengaluru; Editing by Arun Koyyur

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