Broadcom Corporation Reports Second Quarter Revenue and Profit.IRVINE, Calif.--(BUSINESS WIRE)--July 21, 1999-- Broadcom Corporation (Nasdaq: BRCM BRCM Broadcom Corporation (stock abbreviation, AMEX) BRCM Master Chief Boilermaker (USN rating) ) today reported financial results for the quarter ended June 30, 1999. Revenue for the second quarter of 1999 was $116.3 million, an increase of 157% over the $45.2 million reported in the second quarter of 1998. 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 net income, excluding one-time charges associated with acquisitions 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. settlements, was $21.2 million, compared with pro forma net income of $4.9 million in the second quarter of 1998, an increase of 331%. Pro forma 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 second quarter of 1999, excluding the one-time charges, were $.19, based on 111.6 million weighted average shares outstanding. This compares with pro forma diluted earnings of $.05 per share on 101.2 million weighted average shares outstanding for the same period in 1998. All figures have been adjusted to reflect three pooling of interest Noun 1. pooling of interest - an accounting method used in the merging of companies; the balance sheets are added together item by item; this method is tax-free acquisition transactions completed on May 31, 1999; weighted average shares and per share amounts have also been adjusted to reflect a 2-for-1 stock split, in the form of a 100% stock dividend, effective February 17, 1999. On May 31, 1999, Broadcom completed the acquisition of three companies, Maverick Networks, Epigram epigram, a short, polished, pithy saying, usually in verse, often with a satiric or paradoxical twist at the end. The term was originally applied by the Greeks to the inscriptions on stones. , Inc. and Armedia, Inc. One-time charges before tax associated with these transactions were $11.1 million, or $.06 per share after tax. During the quarter, Broadcom also settled two significant litigation matters. The settlement fees and associated attorneys fees, expenses and court costs court costs n. fees for expenses that the courts pass on to attorneys, who then pass them on to their clients or, in some kinds of cases, to the losing party. resulted in a separate aggregate one-time pre-tax charge of $17.0 million, or $.10 per share after tax. Reported net income for the second quarter, including the above-mentioned acquisition and settlement costs, was $2.8 million, or $.03 per share, compared with $4.9 million, or $.05 per share, for the second quarter of 1998. "This was an important quarter for Broadcom as we continued to demonstrate strong financial performance and sales strength in all of our markets, while making a number of key strategic moves in acquisitions and product offerings," 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. . "With these moves, we have enhanced our world-wide leadership position as an Internet-enabler and broadband technology broadband technology Telecommunications devices, lines, or technologies that allow communication over a wide band of frequencies, and especially over a range of frequencies divided into multiple independent channels for the simultaneous transmission of different signals. provider." "In the product arena, we demonstrated the world's first 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. transceiver, the Broadcom(R) 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) 5400, a product based on technology developed at Broadcom that enables makers of business networking This article needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. equipment to deliver data at gigabit speeds over existing unshielded Adj. 1. unshielded - (used especially of machinery) not protected by a shield unprotected - lacking protection or defense twisted-pair copper wiring," Nicholas said. "This was a significant milestone for the networking industry. We have shipped samples of our BCM5400 chip to more than two dozen potential customers." "During the quarter, we completed three acquisitions that will be the cornerstones of several new strategic product thrusts for Broadcom," Nicholas said. "Maverick Networks is enabling us to provide the technology necessary for the integration of voice, video and other delay-sensitive traffic into existing enterprise data networks. We acquired Epigram, the leader in home networking technology, as part of our larger strategy to provide end-to-end broadband connectivity to and throughout the home, where our products will enable many devices to connect and operate simultaneously using existing standard phone wiring. Armedia, based in Bangalore, India, and Broadcom's first international acquisition, allows us to grow our research and development capabilities in digital video." "Also during the quarter, announcements by Cable Television Laboratories, Inc. (CableLabs(R)) regarding its ongoing certifications of cable modems reflected well on Broadcom and its leadership position in the cable modem industry. Nine of the ten suppliers whose modems have been certified this year by CableLabs for interoperability rely on Broadcom cable modem chips. Additionally, all of the three cable plant head-end equipment suppliers that have received CableLabs qualification for their equipment use Broadcom technology." Nicholas added, "Broadcom has been an active supporter of this industry-standard, open specification development. We believe the availability of interoperable cable modems from multiple vendors at retail prices will drive the demand for additional broadband Internet See broadband. services, including telephony and video conferencing, over cable networks worldwide." 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 for some 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 terretement of Broadcom Corporation under the Privatent'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 diffeing or cancellation of significant customer ordr ability to specify, develop, complete, introduce, market and transition to volume production new products ang, direct broadcast satellite and terrestrial iers and strategic partners, potential contractlability of foundry capacity and raw materials; 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; risks and uncertainties associated with international operations; intellectual property disputes; 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; potential business disruptions, claims, expenses and other difficulties resulting from "Year 2000" problems in computer-based systems used by us, our suppliers or our customers; general economic conditions and specific conditions in the markets we address; and other factors. Our recent 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. 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) and the pulse logo are trademarks of Broadcom Corporation and/or its subsidia Unaudited Consolidated Statements of Operations (In thousands, except per share ,216 Gross profit 69,171 -- Income from operations 2,458 7,740 25,059 16,925 Interest and other income, net 1,923 1,139 3,582 d earnings per share $ 1999 19 10,179 Total current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. 234,659 164,498 Property and equipment, net 30,677 6,721 Other: Trade accounts payable $ 336,151 $ 251,785 |
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