The report looks great to me>>>whisper>>who knows?
Tuesday April 18, 4:14 pm Eastern Time
Company Press Release
Broadcom Corporation Reports Record First Quarter Revenue and Profit
IRVINE, Calif.--(BUSINESS WIRE)--April 18, 2000--Broadcom Corporation (Nasdaq: BRCM - news) today reported record financial results for the quarter ended March 31, 2000.
Revenue for the first quarter of 2000 was a record $191.3 million, an increase of 91% over the $100.0 million reported in the first quarter of 1999. Net income, after one-time acquisition-related expenses, was a record $41.8 million, compared with net income of $15.7 million in the first quarter of 1999, an increase of 167%.
Diluted earnings per share for the first quarter of 2000 were $.18, before one-time charges for acquisition expenses of $2.9 million pre-tax, or $.01 per share. Including these one-time charges, diluted earnings per share for the quarter were $.17, based on 250.7 million weighted average shares outstanding. This compares with diluted earnings of $.07 per share on 224.3 million weighted average shares outstanding for the same period in 1999. All numbers shown reflect Broadcom's 2-for-1 stock split effective February 11, 2000.
During the quarter Broadcom completed the acquisitions of BlueSteel Networks, Inc., Digital Furnace Corporation and Stellar Semiconductor, Inc. Each acquisition was accounted for as a pooling of interests, and the financial results of the three companies are consolidated with Broadcom's for this reporting period and all prior reporting periods.
``We completed the first quarter of our fiscal year with stronger than expected demand for our existing networking, cable modem and digital set-top box products, while seeing momentum build for our products in emerging markets, particularly those for home networking and VDSL (Very High-Speed Digital Subscriber Line),' said Dr. Henry T. Nicholas III, Broadcom's President and CEO. ``The quarter demonstrated that we are solidly on strategic course, realizing very healthy revenues and profits from our suite of core products, while aggressively preparing for and pursuing new areas of growth.'
``Our networking business experienced a sharp acceleration of shipments of its Gigabit Ethernet-over-copper chip, a clear sign of pent-up demand in business settings to upgrade existing networks to deliver data at gigabit speeds,' Nicholas said. ``Additionally, by the end of the quarter we had shipped more than 100 million Fast Ethernet ports, making Broadcom the most proven supplier to all leading networking system vendors worldwide.'
``During the quarter, we made three key acquisitions, providing us with expanded capabilities in our core networking, cable modem and set-top box businesses,' Nicholas said. ``In January, we announced the acquisition of BlueSteel Networks, providing us with Gigabit-speed network encryption technology designed to help our customers deliver secure e-commerce and virtual private networks (VPNs). In late February, we completed our acquisition of Digital Furnace, a developer of communications algorithms and software that significantly increase the upstream capacity of broadband cable for integrated voice, video and data applications. Our acquisition in early March of Stellar Semiconductor, a leading developer of 3D graphics technology, expanded our portfolio of graphics and digital video technologies and enhanced our ability to provide cost-effective, high-performance system solutions for set-top boxes, digital TVs and Internet appliances.'
Nicholas added, ``Broadcom has made a total of eight strategic acquisitions since early 1999. We are extremely pleased at the high level of success we've had in integrating employees, technologies and products within Broadcom, and the pace at which acquisition-related products are entering the marketplace.'
During the quarter, Broadcom announced an agreement with Next Level Communications Inc. to jointly develop low-cost VDSL set-top box technology. The goal of this cooperative effort is to provide an industry-leading 52 megabit per second (Mbps) solution to deliver broadband voice, video and data services into and throughout the home or small office using existing phones lines. Additionally, Broadcom reached a major milestone by shipping its 250,000th VDSL transceiver chip. Customers including US West are deploying VDSL services based on products using this chipset to give consumers advanced integrated broadband services.
This quarter Cable Television Laboratories (CableLabs©) completed its work to develop a set of certification tests for the inclusion into cable modems of a home networking interface based upon the established HPNA 2.0 standard. CableLabs also completed the certification of the first cable modem providing the HPNA 2.0 home networking interface. This interface was implemented using Broadcom silicon. This important event marked the cable industry's commitment to HPNA 2.0 as one of the principal means of distributing broadband multimedia content throughout the home and small business.
Broadcom's unaudited pro forma combined financial statements including the effects of the BlueSteel, Digital Furnace and Stellar Semiconductor acquisitions were reported on a Form 8-K filed with the Securities and Exchange Commission on March 24, 2000.
About Broadcom
Broadcom Corporation is the leading provider of highly integrated silicon solutions that enable broadband digital transmission of voice, video and data to and throughout the home and within the business enterprise. Using proprietary technologies and advanced design methodologies, the company designs, develops and supplies integrated circuits for a number of the most significant broadband communications markets, including the markets for cable set-top boxes, cable modems, high-speed office networks, home networking, Voice over Internet Protocol (VoIP), residential broadband gateways, direct broadcast satellite and terrestrial digital broadcast, and digital subscriber line (xDSL). Broadcom is headquartered in Irvine, Calif., and may be contacted at 949-450-8700 or at www.broadcom.com.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995:
This release may contain forward-looking statements 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; the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; silicon wafer pricing and the availability of foundry and assembly capacity and raw materials; our ability to specify, develop, 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 high-speed office network, cable set-top box, cable modem, home networking, direct broadcast satellite and terrestrial digital broadcast, and digital subscriber line markets; delays in the adoption and acceptance of industry standards in the foregoing markets; the effects of new and emerging technologies; 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; the effectiveness of our product cost reduction efforts; intellectual property disputes and customer indemnification claims; fluctuations in our manufacturing yields and other problems or delays in the fabrication, assembly, testing or delivery of our products; the risks of producing products with new suppliers and at new fabrication and assembly facilities; the risks and uncertainties associated with our international operations; ; problems or delays that we may face in shifting our products to smaller geometry process technologies and in achieving higher levels of design integration; 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; potential business disruptions, claims, expenses and other difficulties resulting from ``Year 2000' problems in computer-based systems used by us, our suppliers or our customers; general economic conditions and specific conditions in the markets we address; and other factors.
Our Annual Report on Form 10-K, forthcoming Quarterly Report on Form 10-Q, recent Current Reports on Form 8-K, 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© and the pulse logo are trademarks of Broadcom Corporation and/or its subsidiaries in the United States and certain other countries. CableLabs© is a trademark of Cable Television Laboratories, Inc. All other trademarks mentioned are the property of their respective owners.
BROADCOM CORPORATION
Unaudited Consolidated Statements of Operations
(In thousands, except per share amounts)
Three Months Ended
March 31,
2000 1999
Revenue $ 191,347 $ 99,980
Cost of revenue 78,992 40,815
Gross profit 112,355 59,165
Operating expense:
Research and development 42,285 23,420
Selling, general and administrative 18,333 13,462
Merger related costs 2,901 --
Income from operations 48,836 22,283
Interest and other income, net 3,418 1,721
Income before income taxes 52,254 24,004
Provision for income taxes 10,451 8,335
Net income $ 41,803 $ 15,669
Basic earnings per share $ .20 $ .08
Diluted earnings per share $ .17 $ .07
Weighted average shares (basic) 209,389 193,044
Weighted average shares (diluted) 250,661 224,323
Unaudited Condensed Consolidated Balance Sheets
(In thousands)
March 31, December 31,
2000 1999
ASSETS
Current assets:
Cash and cash equivalents $ 235,214 $ 179,447
Short-term investments 90,902 86,215
Accounts receivable, net 91,516 91,457
Inventory 30,991 19,177
Deferred taxes 8,380 8,380
Other current assets 22,037 12,440
Total current assets 479,040 397,116
Property and equipment, net 51,074 48,288
Long-term investments -- 9,351
Deferred taxes 207,433 134,277
Other assets 11,490 7,695
Total assets $ 749,037 $ 596,727
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $ 55,856 $ 45,728
Accrued liabilities 35,113 41,396
Current portion of long-term debt 471 1,578
Total current liabilities 91,440 88,702
Long-term debt, less current portion 395 548
Shareholders' equity 657,202 507,477
Total liabilities and
shareholders' equity $ 749,037 $ 596,727 |
