Broadcom Reports Record Revenue and Profit for Both Fourth Quarter and Full Year 2000.Business Editors & High-Tech Writers IRVINE, Calif.--(BUSINESS WIRE)--Jan. 23, 2001 Broadcom Corporation (Nasdaq:BRCM BRCM Broadcom Corporation (stock abbreviation, AMEX) BRCM Master Chief Boilermaker (USN rating) ), the leading provider of 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. enabling broadband communications, today reported record financial results for the fourth fiscal quarter and year ended December 31, 2000. Revenue for the fourth quarter was a record $376.1 million, an increase of 132% over the $162.0 million reported in the fourth quarter of 1999 and an increase of 18% over the $319.2 million reported in the third quarter of 2000. 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 was a record $86.7 million, or $.32 per share (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. ). This compares with pro forma net income of $32.0 million, or $.13 per share (diluted), for the same quarter in 1999, and pro forma net income of $78.7 million, or $.30 per share (diluted), in the third quarter of 2000. 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 quarter were based on 274.1 million weighted average shares outstanding, compared to 245.2 million weighted average shares outstanding in the fourth quarter of 1999 and to 264.8 million weighted average shares outstanding in the third quarter of 2000. Broadcom reports net income and diluted earnings per share on a pro forma basis, which excludes the effects of acquisition-related expenses and payroll taxes Payroll Tax Tax an employer withholds and/or pays on behalf of their employees based on the wage or salary of the employee. In most countries, including the U.S., both state and federal authorities collect some form of payroll tax. on certain stock option exercises. Including these charges, substantially all of which were non-cash, net loss for the fourth quarter was $768.6 million, or $3.28 per share, compared with net income of $33.0 million, or $.13 per share (diluted), in the same quarter in 1999, and with a net loss of $19.4 million, or $.09 per share, in the third quarter of 2000. For the full year 2000, revenue was a record $1.1 billion, an increase of 117% over the $521.2 million reported for 1999. Pro forma net income for 2000 was a record $271.4 million, an increase of 172% over the $99.8 million for 1999. Pro forma diluted earnings per share were $1.04, based on 261.4 million weighted average shares outstanding, versus $.42 per share on 235.7 million weighted average shares in 1999. Including the charges excluded in pro forma reporting, net loss for the year 2000 was $693.4 million, or $3.15 per share. During the fourth quarter, Broadcom announced four significant acquisitions -- Element 14, Inc. (DSL DSL in full Digital Subscriber Line Broadband digital communications connection that operates over standard copper telephone wires. It requires a DSL modem, which splits transmissions into two frequency bands: the lower frequencies for voice (ordinary products), Allayer al·lay tr.v. al·layed, al·lay·ing, al·lays 1. To reduce the intensity of; relieve: allay back pains. See Synonyms at relieve. 2. Communications (10 Gigabit per second switching products), VisionTech, Ltd. (MPEG-2 compression products) and SiByte, Inc. (network processor products). All four transactions have been completed. Additionally, two other key acquisitions announced during the third quarter -- NewPort Communications, Inc. (optical networking Communications between computers, telephones and other electronic devices using light. An optical network is far more reliable and has far greater potential transmission capacity than networking in the electrical domain. See optical fiber. products) and Silicon Spice Inc. (carrier access products) -- closed in the fourth quarter. All of these acquisitions were accounted for under the purchase method of accounting. Earlier this month, Broadcom announced and closed its acquisition of ServerWorks Corporation, a leading supplier of high performance System I/O (Input/Output) The transfer of data between the CPU and a peripheral device. Every transfer is an output from one device and an input to another. See PC input/output. I/O - Input/Output (TM) solutions for server and storage platforms, network appliances (1) A specialized device for use on a network. For example, Web servers, cache servers and file servers can be implemented as general-purpose computers with the appropriate software or as network appliances, which are computers dedicated to a single function and cannot do anything and workstations. "Our fourth quarter and full year financial results demonstrated the strength of our traditional product lines as well as the solid growth we are experiencing in new and emerging markets, many of which we are responsible for creating," 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 the year, Broadcom reached the $1 billion revenue level, a significant milestone that made us the fastest growing U.S. semiconductor company to date, a testament to both the company's ability to execute well in multiple broadband markets and the tremendous growth of those markets." During the fourth quarter, Motorola's Broadband Communications Sector entered into two-year purchase and development agreements that guarantee Broadcom a share of Motorola's set-top box 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 modem 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. , and residential voice gateway silicon business. This both extends and broadens the previous three-year-old partnership, which covered only set-top box technologies. As part of the extended agreement, Broadcom will develop single-chip solutions for next generation interactive digital set-top terminals, cable modems 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) gateways. During the quarter, Broadcom also introduced a family of advanced interactive TV video decoder A hardware device or software that converts coded data back into its original form. See decode and MPEG decoder. chips for next generation set-top terminals, such as Motorola's DCT-5000 interactive set-top product. These decoder chips are compatible with the existing 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. ) standards as well as all formats for the new 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 ) standard. In another strategic alliance, Broadcom and Gateway Computer announced a partnership designed to make it easy for consumers to connect to the Internet and to every digital device in their home or home office at broadband speed using existing telephone lines. As part of that endeavor and Gateway's Connected Home initiative, Gateway began shipping its consumer PCs with Broadcom's Home Phoneline Networking Alliance (communications, networking, protocol, standard) Home Phoneline Networking Alliance - (HomePNA) A non-profit association of more than 100 technology companies working together to ensure adoption of a phone line networking standard which should provide high-speed, affordable home (HomePNA) 2.0 chipsets as standard equipment. Broadcom's HomePNA 2.0 chipsets are also standard equipment on all Gateway Internet appliances Also called "information appliance," "smart appliance," and "Web appliance," it is a device specialized for accessing the Web and/or e-mail. Designed for ease of use, it plugs into a telephone jack or LAN connection for Internet hookup. , including the Gateway Connected Music Player and the Gateway Connected Touchpad A stationary pointing device that provides a small, flat surface that you slide your finger over using the same movements as you would a mouse. You can tap on the pad's surface as an alternate to pressing one of the touchpad keys. See mouse, trackball and pointing stick. , which won the "Best Consumer Product" award at Comdex 2000. 3Com entered into a two year purchase, development, marketing and cross license agreement with Broadcom for 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. LAN-On-Motherboard (LOM (1) (LAN On Motherboard) Refers to building the Ethernet circuits directly on the motherboard rather than requiring that a separate network adapter be plugged in. (2) (Lights Out Management) See lights out server room. ) and Gigabit Ethernet adapter card See adapter and expansion board. technologies. In this agreement Broadcom is guaranteed a very significant share of 3Com's desktop, server, workstation and mobile computing Using a computing device while in transit. Mobile computing implies wireless transmission, but wireless transmission does not necessarily imply mobile computing. Fixed wireless applications use satellites, radio systems and lasers to transmit between permanent objects such as buildings Gigabit Ethernet business. As part of this agreement, Broadcom and 3Com's 10/100/1000 Base-T Ethernet solutions will benefit from network compatibility with the world's largest installed base of legacy 10/100 Base-T Ethernet adapter The Ethernet hardware required to attach to an Ethernet network. It typically resides on an expansion board, but is sometimes built into the motherboard. An Ethernet adapter is required in each client and server. See Ethernet and network adapter. cards and LOM solutions. 3Com's 10/100 Base-T Ethernet cards See Ethernet adapter. represent over 50% of the active worldwide installed base of desktop Ethernet solutions. This agreement also provided for the use of 3Com's brand, the most widely recognized one in desktop Ethernet connectivity, as part of an alliance 3Com/Broadcom brand to drive Gigabit technology to the enterprise desktop. In extending its leadership in the Gigabit Ethernet market, Broadcom has shipped 1.5 million Gigabit Ethernet ports to date and remains the only company shipping in significant volumes. In other alliances, Broadcom and Check Point Software Technologies, Ltd., unveiled plans to jointly develop and deliver the next generation of high performance multi-gigabit security products, and Broadcom and Net2Phone, Inc. announced collaboration on VoIP products allowing cable operators to offer customers economical voice IP services over broadband connections See broadband and wireless broadband. . In product announcements, Broadcom began sampling a family of high performance Bluetooth(TM) radio and baseband chips, including the world's first Bluetooth radio chip manufactured in a standard digital 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. process. That chip became the world's first such transceiver (TRANSmitter reCEIVER) An electronic device or circuit that transmits and receives analog or digital signals. It comes in many forms; for example, a transponder on a satellite, a network adapter in the computer or the circuits in a cellphone. developed in a CMOS process to be qualified by the Bluetooth Qualification Board, the body overseeing compatibility among Bluetooth devices. The company also introduced the industry's most comprehensive residential gateway reference design for cable, enabling new classes of consumer services Consumer Services refers to the formulation, deformulation, technical consulting and testing of most consumer products, such as food, herbs, beverages, vitamins, pharmaceuticals, cosmetics, hair products, household cleaners, [paints, plastics, metals, waxes, coatings, minerals, and applications, from basic phone service to new household information appliances See Internet appliance. (hardware) Information Appliance - (IA) A consumer device that performs only a few targeted tasks and is controlled by a simple touch-screen interface or push buttons on the device's enclosure. . In its networking business, Broadcom demonstrated the enterprise market's first Gigabit Ethernet controller chip with support for the PCI-X (PCI eXtended) An enhanced PCI bus technology originally developed by IBM, HP and Compaq that is backward compatible with existing PCI cards. PCI and 32-bit PCI-X slots are physically the same, and PCI cards can plug into PCI-X slots. standard. 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) 5700, the company's first Gigabit Ethernet Media Access Controller (MAC), sets a new standard for performance and on-chip integration. "Our announcements during the quarter reflected industry trends including increased integration of products and technologies and the convergence of voice, video and data onto single networks," Nicholas said. "Broadcom will continue to play a leadership role in driving these and other industry trends, providing cutting-edge products for today's markets while developing and producing next generation solutions." 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 1999, reflecting the effects of the four pooling-of-interest acquisitions completed in 2000, were reported on a Form 8-K/A filed with the Securities and Exchange Commission on July 10, 2000. Broadcom's unaudited 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 Altima Communications, NewPort Communications and Silicon Spice acquisitions were reported on a Form 8-K/A filed with the SEC on November 13, 2000. Broadcom will conduct a conference call with analysts and investors to discuss its fourth quarter and year 2000 financial results and current financial prospects today at 4:45 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. (1:45 p.m. PST PST Paroxysmal supraventricular tachycardia, see there ). We will broadcast the conference over the Internet. To listen to the call, please visit the Investor Information section of the Broadcom web site at www.broadcom.com or go to www.streetfusion.com. A recording of the call will be available for replay at www.streetfusion.com until February 6, 2001. About Broadcom Broadcom Corporation is the leading provider of highly integrated silicon solutions that enable broadband digital transmission of voice, video and data. Using proprietary technologies and advanced design methodologies, the company designs, develops and supplies system-on-a-chip solutions for broadband communications markets. Broadcom products enable cable set-top boxes, cable modems, high-speed local, metropolitan and wide area and optical networks, home networking, Voice over Internet Protocol (VoIP), carrier access, residential broadband gateways, direct broadcast satellite and terrestrial digital broadcast, digital subscriber lines 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), wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. , SystemI/O server solutions and network processing. 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 and our earnings conference call 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," "seeks," "estimates," "may," "will" and variations of these words or similar expressions are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances, including any underlying assumptions, are 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; general economic conditions and specific conditions in the markets we address; the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; silicon 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 or acquire, 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 and products in the markets for cable set-top boxes, cable modems, high-speed local, metropolitan and wide area and optical networks, home networking, Voice over Internet Protocol (VoIP), carrier access, residential broadband gateways, direct broadcast satellite and terrestrial digital broadcast, digital subscriber lines (xDSL), wireless communications, SystemI/O server solutions and network processing; delays in the adoption and acceptance of industry standards in the foregoing markets; 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 treatment and charges, and the risks that the acquisition cannot be completed successfully or that anticipated benefits are not realized; 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; fluctuations in the manufacturing yields of our third party semiconductor foundries 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 of producing products with new suppliers and at new fabrication and assembly facilities; 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 effectiveness of our product cost reduction efforts; the effects of new and emerging technologies; 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. ; 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; 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 Forms 8-K and 8-K/A, 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), SystemI/O, and the pulse logo are trademarks of Broadcom Corporation and/or its affiliates 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. Bluetooth is a trademark owned by Telefonaktiebolaget LM Ericsson AB and licensed to participants in the Bluetooth Special Interest Group The Bluetooth Special Interest Group (SIG) is the body that oversees the development of Bluetooth standards and the licensing of the Bluetooth technologies and trademarks to manufacturers. (SIG) in the United States and certain other countries. All other trademarks mentioned are the property of their respective owners.
BROADCOM CORPORATION
Unaudited Pro Forma Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
Revenue $ 376,144 $ 161,998 $1,132,067 $ 521,225
Cost of revenue 159,863 66,414 476,359 211,576
Gross profit 216,281 95,584 655,708 309,649
Operating expense:
Research and
development 85,851 33,639 239,841 116,199
Selling, general and
administrative 30,699 17,647 98,244 59,822
Income from operations 99,731 44,298 317,623 133,628
Interest and other
income, net 8,622 2,779 21,606 8,648
Income before income
taxes 108,353 47,077 339,229 142,276
Provision for income
taxes 21,671 15,049 67,846 42,510
Pro forma net income $ 86,682 $ 32,028 $ 271,383 $ 99,766
Pro forma basic
earnings per share $ .37 $ .15 $ 1.23 $ .49
Pro forma diluted
earnings per share $ .32 $ .13 $ 1.04 $ .42
Weighted average
shares (basic) 234,073 207,688 220,101 201,667
Weighted average shares
(diluted) 274,103 245,199 261,359 235,651
Pro Forma Only
The above pro forma statements are based upon our unaudited
consolidated statements of operations for the periods shown, with
certain adjustments. The pro forma statement for the three months
ended December 31, 2000 has been adjusted to eliminate $667.4 million
of in-process research and development expense; $2.1 million of
payroll tax expense on certain stock option exercises; $89.2 million
of stock-based compensation expense related to mergers and
acquisitions ("M&A"); and $160.9 million of amortization of goodwill
and purchased intangibles related to M&A; and reflects a pro forma
effective tax rate of 20%.
The pro forma statement for the three months ended December 31,
1999 has been adjusted to eliminate $2.1 million of payroll tax
expense on certain stock option exercises and $.9 million of
stock-based compensation expense; and reflects a pro forma effective
tax rate of 32.0%.
The pro forma statement for the twelve months ended December 31,
2000 has been adjusted to eliminate $713.1 million of in-process
research and development expense; $16.9 million of payroll tax expense
on certain stock option exercises; $119.9 million of stock-based
compensation expense related to M&A; $185.8 million of amortization of
goodwill and purchased intangibles related to M&A; and $4.7 million of
merger-related expense; and reflects a pro forma effective tax rate of
20%.
The pro forma statement for the twelve months ended December 31,
1999 has been adjusted to eliminate $5.0 million of payroll tax
expense on certain stock option exercises; $3.7 million of stock-based
compensation expense; $15.2 million of merger-related expense; and
$17.0 million of litigation settlement costs; and reflects a pro forma
effective tax rate of 29.9%.
All historical financial information has been restated to give
retroactive effect to acquisitions accounted for using the
pooling-of-interests method.
BROADCOM CORPORATION
Unaudited Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
2000 1999 2000 1999
Revenue $ 376,144 $ 161,998 $1,132,067 $ 521,225
Cost of revenue (1)(2) 159,945 66,526 477,375 211,842
Gross profit 216,199 95,472 654,692 309,383
Operating expense:
Research and
development (1)(2) 87,326 35,005 250,676 119,300
Selling, general and
administrative (1)(2) 31,208 18,264 103,305 61,475
Stock-based
compensation (3) 89,230 893 119,885 3,709
Amortization of
goodwill (3) 157,982 -- 182,302 --
Amortization of
purchased intangible
assets (3) 2,905 -- 3,521 --
In-process research and
development (3) 667,390 -- 713,050 --
Merger-related costs -- -- 4,745 15,210
Litigation settlement costs -- -- -- 17,036
Income (loss) from
operations (819,842) 41,310 (722,792) 92,653
Interest and other
income, net 8,622 2,779 21,606 8,648
Income (loss) before
income taxes (811,220) 44,089 (701,186) 101,301
Provision (benefit) for
income taxes (42,659) 11,100 (7,787) 28,830
Net income (loss) $ (768,561)$ 32,989 $ (693,399)$ 72,471
Basic earnings (loss)
per share $ (3.28)$ .16 $ (3.15)$ .36
Diluted earnings (loss)
per share $ (3.28)$ .13 $ (3.15)$ .31
Weighted average shares
(basic) 234,073 207,688 220,101 201,667
Weighted average shares
(diluted) 234,073 245,199 220,101 235,651
Notes:
All historical financial information has been restated to give
retroactive effect to acquisitions accounted for using the
pooling-of-interests method.
(1) Excludes stock-based compensation expense as follows:
Cost of revenue $ 3,888 $ 37 $ 4,578 $ 149
Research and development 62,513 554 85,302 2,433
Selling, general and
administrative 22,829 302 30,005 1,127
$ 89,230 $ 893 $ 119,885 $ 3,709
Excludes amortization of purchased intangible assets as follows:
Cost of revenue $ 1,851 $ -- $ 2,266 $ --
Research and development 951 -- 1,152 --
Selling, general and
administrative 103 -- 103 --
$ 2,905 $ -- $ 3,521 $ --
(2) Includes employer payroll tax expense on certain stock option
exercises as follows:
Cost of revenue $ 82 $ 112 $ 1,016 $ 266
Research and
development 1,475 1,366 10,835 3,101
Selling, general and
administrative 509 617 5,061 1,653
$ 2,066 $ 2,095 $ 16,912 $ 5,020
(3) Represents non-cash acquisition-related expenses charged to
operations
BROADCOM CORPORATION
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
December 31, December 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 523,904 $ 180,816
Short-term investments 77,682 90,059
Accounts receivable, net 172,314 92,124
Inventory 52,137 19,177
Deferred taxes 10,397 8,380
Other current assets 39,220 12,950
Total current assets 875,654 403,506
Property and equipment, net 132,870 51,151
Long-term investments 1,984 9,351
Deferred taxes 355,771 137,779
Goodwill and purchased intangible assets, net 4,245,670 --
Other assets 54,913 7,966
Total assets $ 5,666,862 $ 609,753
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 78,163 $ 46,458
Wages and related benefits 34,720 15,430
Accrued liabilities 66,030 26,131
Note payable 21,051 --
Other current liabilities 2,598 4,862
Total current liabilities 202,562 92,881
Shareholders' equity 5,464,300 516,872
Total liabilities and shareholders'
equity $ 5,666,862 $ 609,753
All historical financial information has been restated to give
retroactive effect to acquisitions accounted for using the
pooling-of-interests method.
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