Broadcom Corp. Reports Second Quarter Revenue and Profit
IRVINE, Calif.--(BUSINESS WIRE)--July 21, 1998--Broadcom Corp. (Nasdaq:
BRCM - news) Tuesday reported financial results for the quarter ended
June 30, 1998.
Revenue for the second quarter of 1998 was $45.2 million, an increase of
737% over the $5.4 million in the second quarter of 1997. Net income for
the second quarter of 1998 was $7.7 million, or $0.16 per share,
compared with a net loss of $1.1 million, or $0.04 per share, in the
second quarter of 1997. The second quarter 1998 earnings per share data
were based on weighted average shares outstanding of 47.9 million, which
included shares issued in the Company's initial public offering in April
1998.
''Broadcom's multiple broadband market strategy and our strong customer
relationships have continued to drive substantial growth for the
company,'' said Dr. Henry T. Nicholas, III, Broadcom's president and
chief executive officer. ''In the quarter just ended, we had continued
strength in all of our major markets, with particular success in digital
set-top boxes and cable modems.
''We have seen increased deployment of digital cable set-top boxes and
cable modems, as consumers demonstrate their preference for high quality
digital video, more channels of content, and faster, more convenient
means of accessing the Internet. In the networking market, we have seen
an acceleration of demand as deployments shift from the older 10 Megabit
per second (Mbps) Ethernet to 100 Mbps Fast Ethernet.
''Broadcom continues to invest heavily in the development of new
industry standards. In particular, Broadcom's early standardization work
in the cable modem market has resulted in our shipment this quarter of
the industry's first cable modem chips compliant with the new industry
standard, which is called DOCSIS (Data Over Cable Service Interface
Specification). In the networking market, Broadcom has also taken a very
active role in helping to develop the standard for the emerging
copper-based Gigabit Ethernet (1000 Mbps) technology.''
''During the second quarter, we made several strategic announcements
that demonstrate our intent to be the industry leader across multiple
broadband communications markets,'' said Nicholas. ''We announced a
joint collaboration with Sony to develop a range of products for the
digital TV market. This includes a digital TV receiver that supports
High Definition TV (HDTV), Standard Definition TV (SDTV) and digital
cable-TV transmission all on a single chip. We also announced production
availability of our single-chip, rate-adaptable ADSL/VDSL (Asymmetrical
Digital Subscriber Line/Very High Speed Digital Subscriber Line)
solution for central office and customer premises equipment. This chip
will allow Local Exchange Carriers to cost-effectively deliver to
customers, over existing telephone lines, a wide range of new digital
services, including digital video, video conferencing, and high-speed
Internet access.''
About Broadcom
Broadcom Corp. is a leading developer of highly integrated silicon
solutions which enable broadband digital data transmission to the home
and within the business enterprise. Using proprietary technologies and
advanced design methodologies, the Company has designed and developed
integrated circuits for some of the most significant broadband
communications markets, including the markets for cable set-top boxes,
cable modems, high-speed networking products, digital broadcast
satellite, terrestrial wireless and xDSL. Broadcom is based in Irvine,
Calif., and can be reached at 949/450-8700 or at broadcom.com
.
Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995
This release may contain forward-looking statements involving risks and
uncertainties that may cause actual future events or results to differ
materially and adversely from those described in the forward-looking
statements. Important factors that may cause such a difference for
Broadcom include, but are not limited to, the timing, rescheduling or
cancellation of significant customer orders; the loss of a significant
customer; the timing of customer qualification and industry
interoperability certification of new products; the rate of adoption by
customers and end-users of new and emerging technologies in the
high-speed data networking, cable set-top box, cable modem, direct
broadcast satellite, terrestrial wireless and xDSL markets; the rate of
adoption and acceptance of new industry standards in the foregoing
markets; the qualification, availability and pricing of competing
products from other vendors; delays in the specification or design of
new products; fluctuations in manufacturing yields and other problems or
delays in the fabrication, assembly, testing or delivery of products;
problems or delays in migrating product designs to smaller geometry
processes; general economic conditions and market conditions in the
markets addressed by Broadcom; intellectual property disputes; and the
other factors discussed in the Company's filings from time to time with
the Securities and Exchange Commission, including but not limited to the
Registration Statement on Form S-1 (Amendment No. 6) and Final
Prospectus dated April 16, 1998 and the Company's subsequent quarterly
filings on Form 10-Q. Broadcom disclaims any obligation to revise or
update any forward-looking statement that may be made from time to time
by it or on its behalf.
BROADCOM CORPORATION
Unaudited Statements of Operations
(In thousands, except per share amounts)
Three Months Ended Six Months Ended
June 30, June 30,
------------------- ----------------
1998 1997 1998 1997
------- ------- ------ -------
Revenue $ 45,168 $ 5,395 $ 80,512 $ 10,426
Cost of revenue 20,380 2,276 34,212 4,810
Gross profit 24,788 3,119 46,300 5,616
Operating expense:
Research and development 8,667 3,519 14,619 6,205
Selling, general and
administrative 5,333 1,399 9,322 2,541
Total operating expense 14,000 4,918 23,941 8,746
Income (loss) from operations 10,788 (1,799) 22,359 (3,130)
Interest and other income, net 1,083 3 1,301 63
Income (loss) before
income taxes 11,871 (1,796) 23,660 (3,067)
Provision (benefit) for
income taxes 4,155 (718) 8,281 (1,226)
Net income (loss) $ 7,716 $(1,078) $15,379 $(1,841)
Basic earnings (loss)
per share $ 0.19 $ (0.04) $ 0.45 $ (0.07)
Diluted earnings (loss)
per share $ 0.16 $ (0.04) $ 0.35 $ (0.07)
Weighted average
shares (basic) 40,578 26,118 34,284 25,930
Weighted average
shares (diluted) 47,894 26,118 44,576 25,930
Condensed Balance Sheets
(In thousands)
June 30,
1998 December 31,
(Unaudited) 1997
ASSETS
Current assets:
Cash and cash equivalents $ 64,711 $ 22,116
Short-term investments 2,629 --
Accounts receivable, net 24,226 9,913
Inventory 11,473 2,705
Other current assets 2,744 1,785
Total current assets 105,783 36,519
Property and equipment, net 16,305 8,449
Long-term investments 25,094 --
Other assets 919 276
Total assets $148,101 $ 45,244
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 15,280 $ 7,380
Accrued liabilities 4,005 1,779
Current portion of long-term debt 89 1,098
Total current liabilities 19,374 10,257
Long-term debt, less current portion 45 1,595
Shareholders' equity 128,682 33,392
Total liabilities and
shareholders' equity $148,101 $ 45,244
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Contact:
Broadcom Corp., Irvine |
