Dallas, Texas 07/25/2014 (FINANCIALSTRENDS) – Broadcom Corporation (NASDAQ:BRCM) is a semiconductor manufacturer for wireless as well as wired communications. It currently operates a Broadband communications segment, Mobile as well as wireless segment besides Infrastructure as well as Networking. Its products find application in video, data as well as voice and multimedia across the platforms of office, mobile as well as home use.
However, on Wednesday, the company reported that its cellular chip business is under pressure and it is streamlining this segment by cutting down on the workforce in this segment. The company also expressed that it this was the best step forward over selling the segment.
The result of the announcement for Broadcom Corporation (NASDAQ:BRCM) was a slip of 1.55% with the stock prices.
Earlier the company’s Chief Executive Scott McGregor had announced in June that it would close down baseband and follow through with the sale of the unit. Apparently, that strategy failed and they have since chosen to continue with a more trimmed workforce and efficient manufacturing processes.
Continuing with the financial realignments, the company will now offer two sets of Senior Notes which are respectively due in 2024 and 2044.
The funds from the proceeds will now be used for the various corporate operations and may include potential redemption which will be ruled by market conditions and Senior Notes due 2015.
Broadcom Corporation (NASDAQ:BRCM) also received further boost, when FBR Capital Markets upgraded the target price of the communications major from $39.00 to $45.00. However, the rating continues to be at outperformed by the analyst. The target price revision was in line with the analyst coverage of other technology stocks.
In recent news, there was insider trading as well as CEO Scott A. Mcgregor sold 75,000 shares in the open market on July 22nd. The stock per share was valued at $38.51, with the final value at $2,888,250.00.