BRCM CC and other stuff
PR on earnings
IRVINE, Calif., Jan 23 (Reuters) - High-speed communications semiconductor company Broadcom Corp. (NASDAQ:BRCM) on Tuesday reported fourth-quarter earnings that beat expectations by a cent, on strong year-over-year revenue growth.
Pro forma net income, which excludes acquisition-related expenses and payroll taxes on stock option exercises, rose to $86.7 million, or 32 cents per diluted share, compared with $32.0 million, or 13 cents a share, in the year-ago quarter.
That compared with the Wall Street consensus analyst earnings forecast for the Irvine, Calif.-based company of 31 cents, according to First Call/Thomson Financial.
Revenues rose 132 percent year-over-year to $376.1 million, from $162.0 million in the fourth quarter of 1999.
Revs 138.4M to 160.8 to 191.3 to 245.2 to 319.2M to 376..1 DEC00
EPS 0.12 to 0.17 to 0.23a to 0.30a to 0.32 DEC00 per breifing and PR
Net income 27.2M to 36.9 to 41.8 to 55.9 to -19.4M SEP00
Profit margins 19.7 to 22.9 to 21.9 to 22.8 to -6.1 SEP00 per stocksheet.com
Yahoo data before earnings factored in
52-Week Low on 3-Jan-2001 $72.375
Recent Price $128.813
52-Week High on 25-Aug-2000 $274.75
Market Capitalization $30.3B
Shares Outstanding 235.2M
Float 164.3M
Price/Book (mrq) 13.12
Price/Earnings (ttm) 300.96
Price/Sales (ttm) 34.49
EBITDA (ttm) $169.9M
Debt/Equity (mrq) 0.00
Total Cash (mrq) $482.4M
Short Interest As of 8-Dec-2000 Shares Short 8.17M Percent of Float 5.0%
CC Notes
Dr. Henry Nicholas
- most successful and significant quarter in history of the company in executing strategic contracts and partnerships such as MOT, COMS, CSCO, GTW partnerships
- cable has most sig q in comp history
- expanded partnership with MOT
- expand supply with general instruments
- added Voice over cable, cable modem
- introduced advance settop interactive TV
- new chip qualified by MOT includes 3D capability from Stellar acquisition
- beat a standalone chip supplier in the PC field
- will included HDTV, 3D graphics and video phone
- new chip CMOS tuner, accorded cablelabs certification
- expanded in VoIP for cable modem solutions, seeing Europe ramp
- NETWORKS
- COMS alliance for gigabite ethernet, will get a sig portion of COMS business and collaborate on drivers
- COMS represent represents 50% on installed ethernet base
- Product Introductions
- Shipped 1.5M gigabit ethernet transceivers
- Home Networks
- Relationship with GTW and standard on GTW line and is the network for them
- These devices support telephony and video
- Introduce internet on a chip product
- Carrier Access
- Calysto? product got many design wins at NT and CSCO
- VoIP – cable
- Designs wins represent 90% of the residential cable market
- Designed CMOS OC-192 transceivers so far out only one there, will be accreditive in Q3
- Ontrack to deliver 12 port ADSL gateway chip
- Still shipping highest network security product for networks, use in next generation gateways
- Wireless
- Delivered first all CMOS chip radio, first to receive bluetooth qualification
- Contract with QCOM and license to deliver QCOM reference design in cable modem?
- Bill CFO all data proforma
- 376.1 18% q2q, 132% y2y
- 117% y2y in revenues
- 57.5% GM unchanged
- 26.5% down from 29.3% last q
- EPS 0.32 up 0.30 last q, 0.13 y2y
- 1.04 EPS for the year
- Top 3 customers were 54%
- COMS 22%, MOT 20%, CSCO 12%
- 2500 people up 700 from last q, 500 from acquisitiion, 20% from growth
- 1700 engineers or 2/3 of staff
- 375 engineers dropped margins
- tax rate is 20%
- Cash 603M, up 120M q2q
- 42 DSO
- 12.3 inventory turns
- will deliver results consistent with guidance
- Q1 22-23% rev growth q2q counts acquisition
- EPS 0.33 for Q1
- Looking for 100% increase in revs for the full year
- EPS 1.60 for full year
- Dr. Nicholas
- Fastest growing semi company to reach a 1B in sales
- Q&A
- RStephens – Newport OC192 product what kind of transceiver
- A: All recovery with a fiber interface. No P&D function.
- Q: Serverworks rev
- A: Some of the rev was earned prior quarter, up 10% in rev
- Q: COMS up 100% in revs
- A: We had products that transferred into production in ethernet switches, HBA adapter cards, routers
- Q: CSFB – Break out of serverworks revs
- A: No
- Q: Sharecount
- A: Not in front of me
- Q: 2001 which sector biggest growth
- A: Tough, No laggards. Home networking outperforms, Cable going from broadcast to interactive boxes, silicon content triples from this, networking is getting growth from driving gigabit networks, our competition is so late in the market, next product is .13 and skips a generation
- Q: reserves and inventory?
- A: We had customer that missed numbers but these are segments that we were not participating in, we are not a single product, WAN marketplace is open for us from LAN bridging. Our gigabit ethernet will give us traction there. WAN is entirely new market place for us.
- Q: flushing inventories?
- A: We got visibility from customers customer’s, not stuck with problems like other, our inventory turns increased this quarter, We have strict rev recognition, extremely conservation to point where CSCO must sell it to have us recognition on our books. Want a buffer for the unseen.
- Q: Scaling wafer starts?
- A: New foundry capacity gives shorter lead times so inventory levels moves with sales, last two years was tightest semi market in 2 years, we missed no shipments in 2 years, affords us competitive pricing since we manage our wafer start. We enter highly competitive market and pound them on price.
- Q: MSDW – Edelstone review CSCO revs and outlook since rev down q2q
- A: CSCO burned off some inventory, huge opportunity looking forward: cable, cable gateways, routers, business enterprise, layer 3, and remote access concentration, security in wordprocessor side, fixed wireless and multipoint development. Every one of these will generate revs in 2002 and some in 2001. Some of these programs draw on our VoIP and networking technology. Not many companies have the breathe and depth to execute on them
- Q: CSCO growth q2q
- A: Yes
- Q: Other income rose
- A: Cash balance interest and phased asset writeoff from acquisition
- Q: Prudential, M&A what plans
- A: can’t tell you since Webcasted <gg>, we worked with serverwork before they generated revs. Known executive for decade
- Q: Any technology additions
- A: WAN space – we have high end switches, gateways, routers, etc using only BRCM parts, we need help on the software side. It is an area where we need to add capability.
- Q: GS – Inventory CSCO workdown, what area
- A: One or two product in the network side, not a weakness in demand but a CSCO supplier could not deliver on their side so we pushed out order.
- Q: Cable from MSO
- A: Looks good, big transition from broadcast to interactive and Voice over cable,
- Q: Partnership benefit?
- A: They get a guaranteed source of supply from us. We work on getting their product to market. Next generation setup requires 3D gaming HDTV, watch and record, media storage. The integration aspect via network is a mammoth effort and requires the combine efforts from us and our customer. We are the leader in this area.
- Q: Share over 50% with these partner
- A: Yes
- Q: BoA – Newport production ramp? Metro?
- A: Not talk about specific customers, but ramp is happening now. 10Gb/s. in production. Have certified high volume devices in CMOS with out testing each one. Will replace older fiber technology
- Q: 10 Gb/s device?
- A: We are making it easier for our customer to migrate to 10Gb/s
- Q: ADSL March Q
- A: March will see rev
- Q: outlook for CSCO COMS
- A: shipped 1.5M in this market. We know who taking large quanitities and will not educate our competitors. We overestimated our competition so we just went to 0.13 and will see revs this year
- Q: SSB – TXN is talking 3M unit in cable settop market
- A: Not see them in competition, they have a captive customer in Tobisha, everyone else is using our stuff. 3M not substantive, we have shipped 14M units in BRCM history
- Q: ATHM and other seeing 5M
- A: There is a six month delay from our ship to cable modem shipped out
- Q: USW - % of rev breakdown
- A: Not break it out
- Q: ML – Osha, - GM looking forward
- A: Wouldn’t see upward growth, but rate may be steady to less
- Q: Any contract manufacturer talks
- A: Always done that, always speaking to Solectron and our Taiwan companies
- Q: Serverworkers q2q growth
- A: 10% growth
- Q: Lehman – What rev from Serverwork the FY
- A: (Jack gets a phone call. Sorry.) Great relationship with ATT broadband. Spinout will be positive for voice over cable. Serverworks should add 300M total and 0.02-0.03 EPS per quarter
- Q: some analyst – hard to understand
- A: Analog side there is work to be done, ?
- Q: Unterburg Towen? – CSCO up q2q
- A: Not make forward projection with a single customer
- Q: GS – CMOS integrate loaner amp
- A: Yes we use our loaner amp, all BRCM product. Next generation PC will be more of an entertainment appliance and in every room. Can record on it while using it. Can watch TV off a settop box, computer terminal, or a TV. Enables PC to have video connectivity. Tuning done by PC or settop box. Taking a network technology from business and applying it to residential
- Q: 14M Cable modems/boxes shipped in history?
- A: Shipped 10M in 2000
- Q: Gigabit Ethernet, what’s driving growth
- A: seeing ramp from 10 to 100 adapter cards, stalled because no infrastructure in place, 100% market share. Large of number switches, routers, servers that support gigibit. Setting up a fast ramp on the adapter card side. We a have a 8 port on a chip going up to Layer 7. It bring switch down to the desktop. Desktops will hit Q3. Seeing shipment now. Now shipping 50% infrastructure.
- Q: BOA – Want to get into tobisha – turbonet, terayon?
- A: Toshiba did it through turbonet, our direct customers are gaining traction, nothing has Docis 1.1. These companies want 2 year life and cheap as possible to get ready for voice. Everything we ship is Docsis 1.1. No one else is compliance with this. Huge selling advantage for us.
- Q: Does it apply to SFA?
- A: SFA is a strategic partner of ours, they will have a successful line, partner with them on networking. They share in our vision of the settop box being a universal gateway.
- Q: Gen Instr vs. SFA?
- A: Not know pricing or cost. GI will have a single chip. Not know SFA number of chips
- Q: MSDW – status of Stratos switch
- A: Quite of few products using Stratos switch or its derivative. Make propietary chips for our customer, NT, CS, CSCO using this in the future. Will be main stream enterprise workgroup switches. High complex Layer 7 switch having voice, video, data functions.
- Q: UBSW – MOT agreement %
- A: It’s a lot, but not disclose it
This is my first BRCM CC so I apologize for the errors.
Jack |
