Broadcom Corporation Reports Record Fourth Quarter and Annual Revenue and Profit.Business Editors, High-Tech Writers IRVINE, Calif.--(BUSINESS WIRE)--Jan. 18, 2000 Broadcom Corporation (Nasdaq: BRCM BRCM Broadcom Corporation (stock abbreviation, AMEX) BRCM Master Chief Boilermaker (USN rating) ) today reported record financial results for the quarter and year ended December 31, 1999. Revenue for the fourth quarter of 1999 was a record $160.8 million, an increase of 116% over the $74.6 million reported in the fourth quarter of 1998. Net income was a record $36.9 million, compared with net income of $8.0 million in the fourth quarter of 1998, an increase of 360%. Diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of for the fourth quarter of 1999 were $.31, based on 120.6 million weighted average shares outstanding. This compares with diluted earnings of $.07 per share on 108.6 million weighted average shares outstanding for the same period in 1998. For the full year 1999, revenue was a record $518.2 million, an increase of 139% over the $216.5 million reported for 1998. Net income for 1999, before one-time charges for merger and litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. settlement costs, was a record $105.8 million, compared with $24.6 million for 1998. Diluted earnings per share were $.91, based on 116.1 million weighted average shares outstanding, versus $.24 per share on 102.3 million weighted average shares in 1998. Including all the one-time charges, 1999 net income was a record $83.3 million, or $.72 per share. "Our fourth quarter capped another strong year of growth for Broadcom, as we ramped even more aggressively on deployment of our products into the marketplace and experienced the fruits of the five acquisitions we made during the year," said Dr. Henry T. Nicholas III Henry T. Nicholas III is the former Chairman and co-founder of Broadcom. Recognized as one of Forbes Magazine's Richest People with an estimated net worth of 2.3bn in 2007,[1] Nicholas has given lavishly to charities in Orange County,[2] where he lives. , Broadcom's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "During this very busy fourth quarter, we made a number of significant technology and product announcements across the range of the markets we serve," Nicholas said. "In October, we partnered with Cisco Systems “Cisco” redirects here. For other uses, see Cisco (disambiguation). Cisco System,Inc. (NASDAQ: CSCO, HKSE: 4333 ) is an American multinational corporation with 54,000 employees and annual revenue of US $28.48 billion as of 2006. to develop custom digital silicon solutions to deliver high speed Internet services over fixed broadband wireless See wireless broadband. systems. In December, we introduced the world's first complete digital-analog RF television tuner in CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. , part of a family of breakthrough advanced tuner products designed to provide significant cost, manufacturing and reliability improvements over tuners now being used. These tuner products could be used in a wide variety of consumer devices including televisions, video recorders See DVR, DVD-R and DVD drives. , cable modems, set-top boxes and PC/TV devices." "The Western Cable Show in December served as our first public forum for demonstrating a suite of products that have resulted from the effective melding of multiple Broadcom-heritage technologies with those from acquisitions made earlier in the year," Nicholas said. "We demonstrated our ability to leverage core technologies in cable modems, home networking and Voice over Internet Protocol See Internet and TCP/IP. (networking) Internet Protocol - (IP) The network layer for the TCP/IP protocol suite widely used on Ethernet networks, defined in STD 5, RFC 791. IP is a connectionless, best-effort packet switching protocol. (VoIP) for effective implementation of residential broadband gateway solutions. This will give cable operators an economically feasible platform to deliver digital voice, video and data services to and throughout the home." "Among the next-generation products demonstrated was our new BCM BCM Baylor College of Medicine BCM Become BCM Business Communications Manager (Nortel) BCM Broadcom Corporation BCM Business Continuity Management BCM Business Contact Manager (Microsoft) 3350 single-chip cable modem solution, a major step up in integration of all the major silicon components required for a cable modem. We also demonstrated the Broadcom(R) BCM7020, the television industry's first 2D/3D video-graphics subsystem that supports both Standard Definition Television (SDTV (Standard Definition TV) A set of digital television (DTV) standards with 480 lines of resolution. All SDTV formats are interlaced, and SDTV pictures are not as sharp as progressive scan EDTV or HDTV (Enhanced Definition or High Definition). SDTV Vs. ) and High Definition Television (HDTV (High Definition TV) A set of digital television (DTV) standards that offer the highest resolution and sharpest picture. Although some HDTV sets are available in standard (rather square) screen sizes, the overwhelming majority of sets are wide screen, which eliminates ) displays for North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe and Japan." "During the quarter, Broadcom also announced production quantity shipments of the company's new iLine10(TM) high speed home networking chipsets to PC OEMs and networking equipment providers. Further, we established our leadership in Gigabit Ethernet An Ethernet standard that transmits at 1 Gbps. Used mostly to connect high-end workstations and servers as well as for network backbones, Gigabit Ethernet transmits full duplex from point to point using switches and half duplex in a shared environment (CSMA/CD) using a hub. markets, shipping production quantities of our BCM5400 chip enabling gigabit speeds over standard Category 5 copper wiring," Nicholas said. Broadcom's restated historical consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge for 1998, reflecting the effects of five 1999 acquisitions, were reported on a Form 8-K/A filed with the SEC on November 24, 1999. About Broadcom Broadcom Corporation is a leading provider of highly integrated silicon solutions that enable broadband digital transmission of voice, data and video content to and throughout the home and within the business enterprise. Using proprietary technologies and advanced design methodologies, the company designs, develops and supplies integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. for a number of the most significant broadband communications markets, including the markets for cable set-top boxes, cable modems, high-speed office networks, home networking, direct broadcast satellite and terrestrial digital broadcast, and digital subscriber line See DSL. (communications, protocol) Digital Subscriber Line - (DSL, or Digital Subscriber Loop, xDSL - see below) A family of digital telecommunications protocols designed to allow high speed data communication over the existing copper telephone lines between end-users and (xDSL). Broadcom is headquartered in Irvine, Calif., and may be contacted at 949-450-8700 or at www.broadcom.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: This release may contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. based on our current expectations, estimates and projections about our industry, management's beliefs, and certain assumptions made by us. Words such as "anticipates," "expects," "intends," "plans," "believes," "may," "will" and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Therefore, our actual results could differ materially and adversely from those expressed in any forward-looking statements as a result of various factors. Important factors that may cause such a difference for Broadcom include, but are not limited to, the volume of our product sales and pricing concessions on volume sales; the timing, rescheduling or cancellation of significant customer orders; the loss of a key customer; the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; silicon wafer pricing and the availability of foundry and assembly capacity and raw materials; our ability to specify, develop, complete, introduce, market and transition to volume production new products and technologies in a timely manner; the timing of customer-industry qualification and certification of our products and the risks of non-qualification or non-certification; the rate at which our present and future customers and end-users adopt Broadcom's technologies in the high-speed office network, cable set-top box, cable modem, home networking, direct broadcast satellite and terrestrial digital broadcast, and digital subscriber line markets; delays in the adoption and acceptance of new industry standards in the foregoing markets; the effects of new and emerging technologies; the risks inherent in our acquisitions of technologies and businesses, including the timing and successful completion of technology and product development through volume production, integration issues, costs and unanticipated expenditures, changing relationships with customers, suppliers and strategic partners, potential contractual, intellectual property or employment issues, accounting charges, and the risks that the acquisition cannot be completed successfully or that anticipated benefits are not realized; the effectiveness of our product cost reduction efforts; fluctuations in our manufacturing yields and other problems or delays in the fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. , assembly, testing or delivery of our products; the risks and uncertainties associated with our international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. ; intellectual property disputes and customer indemnification claims; problems or delays that we may face in shifting our products to smaller geometry process technologies and in achieving higher levels of design integration; our ability to retain and hire key executives, technical personnel and other employees in the numbers, with the capabilities, and at the compensation levels needed to implement our business and product plans; changes in our product or customer mix; the quality of our products and any remediation costs; the effects of natural disasters and other events beyond our control; the level of orders received that can be shipped in a fiscal quarter; potential business disruptions, claims, expenses and other difficulties resulting from "Year 2000" problems in computer-based systems Computer-based systems Complex systems in which computers play a major role. While complex physical systems and sophisticated software systems can help people to lead healthier and more enjoyable lives, reliance on these systems can also result in loss of used by us, our suppliers or our customers; general economic conditions and specific conditions in the markets we address; and other factors. Our forthcoming Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , recent Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. , recent Current Reports on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. , and other Securities and Exchange Commission filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason. Broadcom(R), iLine10(TM) and the Broadcom pulse logo are trademarks of Broadcom Corporation and/or its subsidiaries in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and certain other countries. All other trademarks mentioned are the property of their respective owners.
BROADCOM CORPORATION
Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended
December 31, Twelve Months Ended
(Unaudited) December 31,
1999 1998 1999 1998
Revenue $160,823 $74,618 $518,183 $216,456
Cost of revenue 65,775 30,995 209,837 91,403
Gross profit 95,048 43,623 308,346 125,053
Operating expense:
Research and development 31,426 17,746 108,579 51,090
Selling, general and administrative 15,745 11,941 56,601 32,939
Total operating expense 47,171 29,687 165,180 84,029
Merger related costs -- -- 15,210 --
Litigation settlement costs -- -- 17,036 --
Income from operations 47,877 13,936 110,920 41,024
Interest and other income, net 2,679 1,270 8,402 4,154
Income before income taxes 50,556 15,206 119,322 45,178
Provision for income taxes 13,686 7,192 36,035 20,586
Net income $36,870 $8,014 $83,287 $24,592
Basic earnings per share $.36 $.09 $.84 $.29
Diluted earnings per share $.31 $.07 $.72 $.24
Weighted average shares (basic) 101,995 93,855 99,256 84,443
Weighted average shares (diluted) 120,563 108,626 116,142 102,316
Condensed Consolidated Balance Sheets
(In thousands)
December 31, December 31,
1999 1998
ASSETS
Current assets:
Cash and cash equivalents $ 173,966 $ 72,511
Short-term investments 86,215 34,344
Accounts receivable, net 91,457 42,279
Inventory 19,177 7,325
Deferred taxes 8,380 6,184
Other current assets 12,132 10,001
Total current assets 391,327 172,644
Property and equipment, net 47,099 31,600
Long-term investments 9,351 42,826
Deferred taxes 127,740 6,721
Other assets 9,792 6,790
Total assets $ 585,309 $ 260,581
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 44,860 $ 22,374
Accrued liabilities 40,694 11,352
Current portion of long-term debt 508 7,252
Total current liabilities 86,062 40,978
Long-term debt, less current portion 548 4,100
Shareholders' equity 498,699 215,503
Total liabilities and shareholders' equity $ 585,309 $ 260,581
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion