Broadcom Out in Front Again ... With Earnings Warning

Broadcom (BRCM Quote) is leading the communications chip sector once again, but this time its executives aren't smiling.

The company's first-mover status now comes in the realm of earnings warnings. Broadcom said Wednesday evening that revenue would fall 32% to 35% in the second quarter, worse than the 20% to 25% decline that it had previously told investors to expect due to a technology slowdown.

Broadcom's bad news could foreshadow troubles for other companies in the sector, including Applied Micro Circuits (AMCC Quote), Vitesse Semiconductors (VTSS Quote) and PMC-Sierra (PMCS Quote). The communications industry, from telecommunications to networking to cable, has been under severe pressure since late last year due to a capital spending contraction and lighter consumer demand. ...