***BRCM ($38~43) Posts 4Q Profit; Net Revenue Rose 62%
Tuesday January 27, 5:58 pm ET
IRVINE, Calif. -- Broadcom Corp. (NasdaqNM:BRCM - News) swung to a fourth-quarter profit on a continued surge in year-over-year sales.
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The communications-chip maker late Tuesday reported net income of $6.1 million, or two cents a share, compared with a year-earlier net loss of $1.76 billion, or $6.40 a share. The year-earlier period included a $1.26 billion goodwill write-down and $99.2 million in stock-compensation costs, while the latest quarter had $48.3 million in stock costs and $16.2 million in settlement expenses.
Excluding those and other items, considered part of ordinary operations, Broadcom said it would have earned $61.3 million, or 19 cents a share, compared with a year-earlier loss of $6.6 million, or two cents a share. The mean estimate of analysts surveyed by Thomson First Call (News - Websites) was for earnings of 16 cents a share.
Net revenue soared 62% to $479.1 million from $295.9 million.
For all of 2003, Broadcom had a net loss of $959.9 million, or $3.29 a share, narrower than the year-earlier net loss of $2.24 billion, or $8.35 a share. Excluding items, the company said it would have earned $151.7 million, or 49 cents a share, compared with a 2002 loss of $54.4 million, or 20 cents a share.
Net revenue jumped 49% to $1.61 billion from $1.08 billion, thanks in part to the launch of new products in segments such as wireless local area networks and personal video recording.
Separately, Broadcom announced it intends to register with the Securities and Exchange Commission (News - Websites) a plan to sell up to $750 million in stock and/or debt and a separate scheme to issue up to 30 million shares for any future acquisition.
Chief Financial Officer William J. Ruehle said Broadcom has no current intentions to either raise capital or issue the stock for an acquisition. But he added getting the registration approvals from the SEC would enable the company " to take advantage of favorable market conditions in capital-raising transactions" and "facilitate and expedite opportunistic acquisition and growth activities."
At 4 p.m. EST on the Nasdaq Stock Market (News - Websites) , shares of Broadcom were down 75 cents, or 1.8%, at $40.60. In after-hours activity, the stock jumped to $43.30.
-Kevin Kingsbury; Dow Jones Newswires; 609-520-4367 |
