Broadcom Reports Third Quarter 2005 Results

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:

All statements included or incorporated by reference in this release and in the related conference call for analysts and investors, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

Our future reported GAAP-based results will be negatively affected by the implementation of new accounting rules related to the expensing of stock options, commencing in 2006. Other important factors that may affect Broadcom's business, results of operations and financial condition include, but are not limited to, general economic and political conditions and specific conditions in the markets we address, including the continuing volatility in the technology sector and semiconductor industry, trends in the broadband communications markets in various geographic regions, including seasonality in sales of consumer products into which our products are incorporated, and possible disruption in commercial activities related to terrorist activity or armed conflict; our ability to scale our operations in response to changes in demand for our existing products and services or demand for new products requested by our customers; intellectual property disputes and customer indemnification claims and other types of litigation risk; our ability to specify, develop or acquire, complete, introduce, market and transition to volume production new products and technologies in a cost-effective and timely manner; the timing, rescheduling or cancellation of significant customer orders and our ability, as well as the ability of our customers, to manage inventory; the gain or loss of a key customer, design win or order; the rate at which our present and future customers and end-users adopt Broadcom's technologies and products in our target markets; delays in the adoption and acceptance of industry standards in those markets; our ability to retain, recruit and hire key executives, technical personnel and other employees in the positions and numbers, with the experience and capabilities, and at the compensation levels needed to implement our business and product plans; the availability and pricing of third party semiconductor foundry, assembly and test capacity and raw materials; our ability to timely and accurately predict market requirements and evolving industry standards and to identify opportunities in new markets; the quality of our products and any remediation costs; our dependence on a few significant customers for a substantial portion of our revenue; competitive pressures and other factors such as the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; problems or delays that we may face in shifting our products to smaller geometry process technologies and in achieving higher levels of design integration; the timing of customer-industry qualification and certification of our products and the risks of non-qualification or non-certification; changes in our product or customer mix; the volume of our product sales and pricing concessions on volume sales; our ability to develop new sources of revenue to replace lost revenue from our declining Intel processor-based server chipset business; fluctuations in the manufacturing yields of our third party semiconductor foundries and other problems or delays in the fabrication, assembly, testing or delivery of our products; the risks of producing products with new suppliers and at new fabrication and assembly facilities; the effectiveness of our expense and product cost control and reduction efforts; the risks and uncertainties associated with our international operations, particularly in light of recent events; the effects of natural disasters, public health emergencies, international conflicts and other events beyond our control; the level of orders received that can be shipped in a fiscal quarter; and other factors.

Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release and the related conference call for analysts and investors speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.

Broadcom(R), the pulse logo, Connecting everything(R), the Connecting everything logo, NetXtreme(R) and BLINK(TM) are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. Bluetooth(R) is a trademark of the Bluetooth SIG. Any other trademarks or trade names mentioned are the property of their respective owners.

     Broadcom Financial Analyst Contact
     T. Peter Andrew
     Sr. Director, Investor Relations
     949-926-5663
     
Email Contact



                             BROADCOM CORPORATION
             Unaudited GAAP Consolidated Statements of Operations
                   (In thousands, except per share amounts)

                                   Three Months Ended    Nine Months Ended
                                      September 30,        September 30,
                                     2005      2004       2005      2004
     Net revenue                  $694,977   $646,515  $1,850,183  $1,861,220

     Cost of revenue (1)           326,608    322,038     875,417     921,727
     Cost of revenue -
      stock-based compensation         471          1       1,233       1,272
     Gross profit                  367,898    324,476     973,533     938,221

     Operating expense:
       Research and
        development (1)            159,096    123,935     441,660     367,666
       Research and
        development - stock-based
        compensation                11,559      9,860      28,499      53,020

       Selling, general and
        administrative (1)          64,838     53,743     176,948     161,290
       Selling, general and
        administrative -
         stock-based compensation    4,554      2,634      12,694       9,124

       Amortization of purchased
                intangible  assets                        1,040            1,296              2,992              2,127
              In-process  research  and
                development                                  35,000          37,262            41,652            63,766
              Restructuring  costs
                (reversal)                                    (2,500)                --            (2,500)                  --

              Settlement  costs                                  --          35,700          110,000            68,200
              Impairment  of
                intangible  assets                              --                  --                    --            18,000

          Income  from  operations                  94,311          60,046          161,588          195,028
          Interest  income,  net                      14,317            4,365            32,953              8,982
          Other  income,  net                              2,580            6,952              3,357              6,552
          Income  before  income  taxes        111,208          71,363          197,898          210,562
          Provision  (benefit)
            for  income  taxes                          (21,448)        27,462          (19,001)          62,958
          Net  income                                      $132,656        $43,901        $216,899        $147,604
          Net  income  per  share
            (basic)                                                  $.39              $.14                $.65                $.47
          Net  income  per  share
            (diluted)                                              $.35              $.13                $.59                $.42
          Weighted  average  shares
            (basic)                                            341,849        322,541          336,074          316,084
          Weighted  average  shares
          (diluted)                                          383,675        347,389          368,321          347,449


          (1)  Excludes  stock-based  compensation,  which  is  presented  separately  by
                  respective  expense  category.    Stock-based  compensation  expense
                  includes  the  impact  of  restricted  stock  units  (RSUs)  and  certain
                  other  equity  compensation  instruments  issued  by  Broadcom  as  well  as
                  stock  options  and  restricted  stock  assumed  in  acquisitions.    RSUs  are
                  share  awards  that  entitle  the  holder  to  receive  freely  tradable
                  shares  of  Broadcom's  Class  A  Common  Stock  upon  vesting.    Generally,
                  RSUs  vest  on  a  quarterly  basis  over  sixteen  quarters  from  the  date  of
                  grant.



                                                          BROADCOM  CORPORATION
                    Unaudited  Reconciliation  of  Pro  Forma  Non-GAAP  Adjustments
                                                                (In  thousands)

          The  following  represents  a  reconciliation  (unaudited)  of  GAAP  net  income
          to  pro  forma  non-GAAP  net  income.

                                                                        Three  Months  Ended          Nine  Months  Ended
                                                                                September  30,                September  30,
                                                                                2005          2004                2005            2004
          GAAP  net  income                                    $132,656    $43,901        $216,899    $147,604

              Stock-based  compensation:
                  Restricted  stock  units
                    issued  by  Broadcom                          9,875              76            23,434                76
                  Stock  options  and  restricted
                    stock  assumed  in  acquisitions
                    and  other  equity  compensation
                    instruments  issued  by  Broadcom  6,709      12,419            18,992        63,340

              Additional  acquisition-related
                items:
                  Amortization  of  purchased
                    intangible  assets:
                    Cost  of  revenue                                2,774        3,782              8,308          9,228
                    Other  operating  expense                1,040        1,296              2,992          2,127
                  In-process  research  and
                    development                                      35,000      37,262            41,652        63,766
                  Impairment  of  intangible
                    assets                                                        --              --                    --        18,000

              Employer  payroll  tax  on  certain
                stock  option  exercises:
                    Cost  of  revenue                                      98              51                  186              258
                    Research  and  development              1,315            283              2,102          2,130
                    Selling,  general  and
                      administrative                                    586              85                  938          1,069
              Settlement  costs                                          --      35,700          110,000        68,200
              Restructuring  costs  (reversal)      (2,500)            --            (2,500)              --

              Gains  on  strategic
                investments,  net                                (1,151)    (5,231)          (1,151)      (5,231)
              Non-operating  gains                                (471)    (1,979)              (646)      (2,586)
              Income  tax  benefits  from
                adjustments  to  tax  reserves
                of  foreign  subsidiaries                (25,900)            --          (25,900)              --
              Income  tax  effects                            (11,996)    (3,560)    (    43,520)    (23,230)
          Pro  forma  non-GAAP  net  income        $148,035  $124,085        $351,786    $344,751


          Pro  Forma  Non-GAAP  Adjustments 


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