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Broadcom warns on 2Q
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June 6, 2001: 7:05 p.m. ET
Broadband chipmaker says sales in 2Q to be 32-35% lower than in 1Q
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NEW YORK (CNNfn) - Broadband communications chipmaker Broadcom Corp. warned Wednesday of a shortfall in second-quarter sales Wednesday, citing continued tech-sector weakness, and said job cuts are coming.
The company said it now expects sales to be between $206.8 million and $216.3 million. Analysts surveyed by First Call were on average expecting revenue of $254.7 million.
But Broadcom said it is starting to see signs of stabilization in the broadband communications sector.
The company said in April it was conducting a review to identify areas for headcount reduction.
"We are beginning to implement these plans during the second quarter," said Dr. Henry T. Nicholas II, president and CEO, in a statement. "This will result in business unit realignment, net staffing reductions, facility consolidations, and other actions that will result in an associated charge to be taken during the second quarter."
Shares of Broadcom (BRCM: Research, Estimates) fell 2 cents to $35.55 after hours. 
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Broadcom
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