Broadcom Corporation Reports Record Third Quarter Revenue and Profit.IRVINE, Calif.--(BUSINESS WIRE)--Oct. 14, 1999-- Broadcom Corporation (Nasdaq: BRCM BRCM Broadcom Corporation (stock abbreviation, AMEX) BRCM Master Chief Boilermaker (USN rating) ) today reporteaverage shares outstanding. This compares with diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. earnings of $.05 per share on 105.9 million weighted average shares outstanding for the same period in 1998. Incluh of these transactions was accounted for as a ile setting the stage for future sales of new pfrom several of our acquisitions." "In new product introductions, our networking business was especiallleading networking vendors in the first large sne networking offering is being shipped in sample quantities to numerous customers who are industry leaders in their respective product segments, and contributed to third quarter revenue." "We saw the first fruits of our acquisition of HotHaus with the integration of their embedded Inserted into. See embedded system. 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) CablexChange(TM) software onto our 4-channel PacketCable(TM) voice modem reference design. This is a strategic step in Broadcom's roadmap to provide optimal hardware/software solutions for the delivery of voice over the broadband cable network." Nicholas added: "Vancouver-based HotHaus represented our second international acquisition, and demonstrated our global perspective. During the quarter, we also announced the opening of a design and manufacturing support center in Singapore, and we began ramping production of digital interactive chips for the European set-top market." Broadcom's unaudited pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma combined financial statements Combined financial statement A financial statement that merges the assets, liabilities, net worth, and operating figures of two or more affiliated companies. A combined statement is distinguished from a consolidated financial statement of a company and subsidiaries, which must including the effects of the HotHaus and AltoCom acquisitions were reported on a 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. filed with the Securities and Exchange Commission on September 28, 1999. 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 reflecting the effects of three earlier 1999 acquisitions were reported on a Form 8-K filed with the SEC on September 17, 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 some of the most significant broadband communications markets, including the markets for cable set-top boxes The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. , cable modems cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. , 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 of Broadcom Corporation 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 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; wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. 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 qualification and industry interoperability The capability of two or more hardware devices or two or more software routines to work harmoniously together. For example, in an Ethernet network, display adapters, hubs, switches and routers from different vendors must conform to the Ethernet standard and interoperate with each other. certification of new 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, VoIP, 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 Indemnification Used in insurance policy agreements as to compensation for damage or loss. In the context of corporate governance, Director Indemnification uses the bylaws and/or charter to indemnify officers and directors from certain legal expenses and judgements resulting from 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 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 and forthcoming Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. , recent Current Reports on Form 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. Broadcom undertakes no obligation to revise or update publicly any forward-looking statements for any reason. Broadcom(R), StrataSwitch(TM), ROBOswitch(TM), iLine10(TM), CablexChange(TM) and the 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. PacketCable(TM) is a trademark of Cable Laboratories, Inc. All other trademarks mentioned herein are the property of their respective owners.
BROADCOM CORPORATION
Unaudited Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
1999 1998 1999 1998
Revenue $138,353 $55,474 $ 357,360 $141,838
Cost of revenue 55,518 24,898 144,062 60,408
Gross profit 82,835 30,576 213,298 81,430
Operating expense:
Research and development 27,791 14,085 77,153 33,344
Selling, general and administrative 13,846 8,285 40,856 20,998
Total operating expense 41,637 22,370 118,009 54,342
Merger related costs 4,088 -- 15,210 --
Litigation settlement costs -- -- 17,036 --
Income from operations 37,110 8,206 63,043 27,088
Interest and other income, net 2,091 1,260 5,723 2,884
Income before income taxes 39,201 9,466 68,766 29,972
Provision for income taxes 12,001 4,294 22,349 13,394
Net income $27,200 $5,172 $46,417 $16,578
Basic earnings per share $.27 $.06 $.47 $.20
Diluted earnings per share $.23 $.05 $.40 $.17
Weighted average shares (basic) 100,161 90,850 98,256 81,241
Weighted average shares (diluted) 117,332 105,869 114,669 100,212
The unaudited consolidated financial statements reflect the
retroactive effects of all stock splits and business combinations of
Broadcom Corporation and its subsidiaries through September 30, 1999.
BROADCOM CORPORATION
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
September 30, December 31,
1999 1998
ASSETS
Current assets:
Cash and cash equivalents $ 147,926 $ 72,511
Short-term investments 78,348 34,344
Accounts receivable, net 64,460 42,279
Inventory 12,257 7,325
Deferred taxes 7,183 6,184
Other current assets 13,083 10,001
Total current assets 323,257 172,644
Property and equipment, net 43,247 31,600
Long-term investments 20,072 42,826
Deferred taxes 60,865 6,721
Other assets 8,780 6,790
Total assets $ 456,221 $ 260,581
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 54,796 $ 22,374
Accrued liabilities 35,176 11,352
Current portion of long-term debt 415 7,252
Total current liabilities 90,387 40,978
Long-term debt, less current portion 865 4,100
Shareholders' equity 364,969 215,503
Total liabilities and
shareholders' equity $ 456,221 $ 260,581
The unaudited consolidated financial statements reflect the retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a effects of all stock splits and business combinations of Broadcom Corporation and its subsidiaries through September 30, 1999. |
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