Broadcom Reports Second Quarter 2001 Results
IRVINE, Calif.--(BUSINESS WIRE)--July 18, 2001--Broadcom Corporation (Nasdaq:BRCM - news), the leading provider of integrated circuits enabling broadband communications, today reported financial results for the second fiscal quarter ended June 30, 2001.
Net revenue for the second quarter of 2001 was $210.9 million, a decrease of 14% from the $245.2 million reported in the second quarter of 2000. Pro forma net loss for the second quarter of 2001 was $41.1 million, or $.16 per share (basic and diluted). This compares with pro forma net income of $61.1 million, or $.24 per share (diluted), for the same quarter in 2000. Loss per share for the quarter was based on 252.4 million weighted average shares outstanding (basic and diluted), compared to 253.9 million weighted average shares outstanding (diluted) in the second quarter of 2000.
Broadcom reports net income (loss) and diluted earnings (loss) per share on a pro forma basis, which excludes the effects of acquisition-related expenses, payroll taxes on certain stock option exercises, certain non-recurring charges and related income tax effects. Including these charges, substantially all of which were non-cash, net loss for the second quarter of 2001 was $436.4 million, or $1.73 per share (basic and diluted), compared with net income of $55.9 million, or $.22 per share (diluted), in the same quarter of 2000. Restructuring charges incurred during the quarter (and included in the pro forma adjustment) were $18.2 million, of which approximately $10 million represented non-cash charges.
For the six months ended June 30, 2001, net revenue was $521.4 million, an increase of 19% over the $436.8 million reported for the six months ended June 30, 2000. Pro forma net loss for the six months ended June 30, 2001 was $23.0 million, compared to pro forma net income of $106.0 million reported for the first six months of 2000. Pro forma loss per share was $.09 (basic and diluted), based on 251.0 million weighted shares outstanding, versus pro forma earnings of $.42 per share (diluted) on 253.3 million weighted average shares outstanding in 2000. Including the charges excluded in pro forma reporting, net loss for the six months ended June 30, 2001 was $793.2 million, or $3.16 per share (basic and diluted).
``During the quarter, we conducted extensive reviews of all of our lines of business. As a result we have consolidated many programs, particularly on the subscriber side of our business. This will allow us to more efficiently address customer requirements in our cable, phoneline and wireless lines of business,'' said Dr. Henry T. Nicholas III, Broadcom's President and CEO. ``We have been able to remove redundancies throughout the company, in both engineering and non-engineering areas, resulting in the elimination of over 200 positions. We have also identified products and markets in which we want to increase our level of investment both with new hires and with people eliminated from lower priority programs.''
``Our second quarter results met the revised expectations that we communicated on June 6th. As we indicated then, we are continuing to see signs that business is stabilizing for the second half of the year,'' Nicholas continued. ``Having a diversified portfolio of products within the broadband communications sector should position us well as these markets begin to improve. The ability to continue to serve our existing markets as well as to introduce new products into emerging markets will be paramount to the re-acceleration of our growth.''
During the second quarter, Broadcom announced several significant relationships as well as new products.
In the direct broadcast satellite market, Broadcom introduced a new chipset, which was endorsed by Echostar, which increases satellite bandwidth by up to 50 percent. In the cable set-top market, Broadcom introduced a dual-channel MPEG-2 encoder chip, which Scientific-Atlanta (NYSE:SFA - news) has integrated into its line of ``watch and record'' cable set-top boxes. Also in the cable market, Microsoft Corp. (Nasdaq:MSFT - news) and Broadcom jointly announced that Broadcom has developed a third-party hardware reference platform that will enable digital video recording (DVR) and home networking capabilities in set-top boxes running on the Microsoft TV platform. Finally in the cable market, Broadcom and NDS Group plc (Nasdaq/Nasdaq Europe:NNDS) announced a collaboration on the development of next-generation set-top box technologies for emerging interactive TV applications.
In the cable modem area, Broadcom announced its sixth-generation cable modem chip, a high-performance broadband residential gateway, and the industry's first pair of upstream and downstream advanced physical layer cable headend chips for DOCSIS/EuroDOCSIS cable networks.
For the wireless market, Broadcom introduced a high-performance, single-chip all-CMOS Bluetooth(TM) radio that integrates separate, previously developed, Bluetooth-compliant radio and baseband circuits into a single, high-speed chip.
In the enterprise networking area, Broadcom introduced its next generation StrataSwitch(TM) II chips, which enable differentiated services for voice, video and data IP networks, and also announced the world's smallest and most cost-effective Gigabit Ethernet media access controller with an integrated transceiver.
Broadcom's three new products in the optical area included the world's first single-chip DWDM transport processor for 10 Gigabit optical networks, the world's first single-chip 10 Gigabit Ethernet serial transceiver in standard CMOS and the world's first 10 Gigabit Ethernet backplane transceiver.
Broadcom will conduct a conference call with analysts and investors to discuss its second quarter 2001 financial results and current financial prospects today at 4:45 p.m. Eastern Time (1:45 p.m. Pacific Time). The company will broadcast the conference over the Internet. To listen to the call, please visit the Investor Information section of the Broadcom Website at www.broadcom.com/investor or go to www.streetfusion.com. The Webcast will be recorded and available for replay until 5:00 p.m. Pacific Time on July 25, 2001. |
