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Broadcom Reshuffles Its Management Team

Posted on: Friday, 26 September 2003, 06:00 CDT

Sep. 26--IRVINE, Calif.--Broadcom Corp., the chipmaker whose co-founder Henry Nicholas resigned as chief executive in January, reshuffled its management team as CEO Lanny Ross reshapes the company.

Ross cut the number of executives who report to him, reducing the number of product groups to four from six.

It's his latest effort to revamp a company built by acquisitions, which left it with decentralized management. Before Nicholas resigned, some investors criticized him for investing in research without making sure it would result in commercially viable products. Ross has cut research spending, laid off employees and focused product development on areas with the most promise.

"The company is maturing," said Ray Rund, head of research at Shaker Investments in Ohio, which own shares in Broadcom. "They're trying to focus on doing some things and doing them well."

On a day when the wider market fell, Broadcom rose 50 cents, to $27, after Ross announced the new divisions: Enterprise computing will be run by Thomas Lagatta. It develops storage and networking chips for business computers. The ServerWorks subsidiary, which is losing market share to rival Intel Corp., will join this group.

Mobile and wireless will be run by Robert Rango. It develops chips for cell phones, wireless networks and Internet phones. Tung Chang, who has run the mobile communications group, will report to Rango.

Networking infrastructure, to be run by Ford Tamer, develops chips used in switches and other devices that run computer and telecommunications networks.

Broadband communications will be run by Dan Marotta. Its chips are used in satellite and cable-TV boxes and in cable and DSL modems.

ServerWorks head Duane Dickhut has been offered several jobs reporting to Ross, company spokesman Bill Blanning said. He would not elaborate, and Dickhut declined to comment.

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(c) 2003, The Orange County Register, Calif. Distributed by Knight Ridder/Tribune Business News.

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