Scientific-Atlanta and Broadcom Announce Strategic Development and Supply
Agreement for Next-Generation Digital Set-Top Silicon
IRVINE, CALIF. (Oct. 1) BUSINESS WIRE -Sept. 30, 1998--
Broadcom Receives 500,000 Unit Production Order From
Scientific-Atlanta
Broadcom Corporation (Nasdaq:BRCM) and Scientific-Atlanta, Inc.
(NYSE:SFA) today announced that they have entered into a strategic
agreement for the development and supply of next-generation digital
communication integrated circuits (ICs) for Scientific-Atlanta's
advanced interactive digital set-top terminals. According to the terms
of the agreement, Scientific-Atlanta has agreed to purchase a
percentage of its requirements for integrated circuits from Broadcom
for its digital cable set-top terminal subscriber products for
shipments into calendar year 2000. This agreement calls for a minimum
of 500,000 ICs to be delivered to Scientific-Atlanta during calendar
year 1999. Earlier this year, Scientific-Atlanta announced that many
major multi-channel service operators (MSO's), with substantial
subscriber bases, plan to introduce two-way, real-time services using
the Scientific-Atlanta Digital Interactive Network and Explorer(R) 2000
interactive digital set-top terminals.
"We entered into this agreement with Broadcom because of their
demonstrated technical leadership in digital cable transmission and
their proven track record as a world-class semiconductor supplier,"
said Michael Harney, President and General Manager of
Scientific-Atlanta's Digital Subscriber Networks.
Broadcom is currently shipping a 64/256-QAM demodulator integrated
circuit for the Explorer 2000 set-top box. The Scientific-Atlanta
Explorer 2000 advanced digital set-top has high-throughput, two-way
communications and sufficient processing power, memory and graphics to
enable a variety of two-way, interactive applications for consumers,
including the following once fully developed: Internet access,
video-on-demand, E-commerce and IP-based applications.
Scientific-Atlanta has selected Broadcom as the key strategic supplier
for the integration of all the critical communication functions in the
Explorer 2000. These critical functions include the integration of the
64/256-QAM downstream receiver, QPSK control channel receiver, and
QPSK/16-QAM upstream transmitter, as well as the analog front-end
including 10-bit A/D and D/A converters.
"Through the cooperative efforts of Scientific-Atlanta and Broadcom, we
are working to integrate all of the communications signal processing
functions for the Explorer 2000 digital set-top boxes into a single
VLSI device," said Dr. Henry Nicholas, Broadcom's President and CEO.
Broadcom has a long history with Scientific-Atlanta that began with the
Time Warner Full Service Network in Orlando, Florida in 1994. The Time
Warner Full Service Network was the world's first interactive cable
service. Broadcom's QAMLink(TM) chip set was the basis for the cable-TV
digital-transmission technology in Scientific-Atlanta's set-top boxes
used during the full-service network trials.
About Scientific-Atlanta
Scientific-Atlanta, Inc. (http://www.sciatl.com) is a leading supplier
of broadband communications systems, satellite-based video, voice and
data communications networks, and worldwide customer service and
support.
About Broadcom
Broadcom Corporation is a leading developer of highly integrated
silicon solutions that 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, direct
broadcast satellite and terrestrial digital broadcast, and digital
subscriber line (xDSL). Broadcom is based in Irvine, California, 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. Please see Exhibit 99 to Scientific-Atlanta's recently
filed Form 10-K for a detailed list of risk factors that may cause
results to vary. Important factors that may cause such a difference for
Broadcom include, but are not limited to, the volume of product sales
and pricing concessions on volume sales; 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 and terrestrial digital broadcast, and digital
subscriber line (xDSL) markets; the rate of adoption and acceptance of
new industry standards in the foregoing markets; the Company's ability
to specify, develop, introduce and market new products and technologies
on a timely basis; the qualification, availability and pricing of
competing products and technologies from other vendors; fluctuations in
manufacturing yields and other problems or delays in the fabrication,
assembly, testing or delivery of products; uncertainties associated
with international operations; the Company's ability to retain and hire
key executives, technical personnel and other employees; problems or
delays in achieving higher levels of design integration and in
migrating product designs to smaller geometry processes; intellectual
property disputes; changes in product or customer mix; the quality of
the Company's products; the level of orders received that can be
shipped in a quarter; the effects on operations and management of
facility relocations; general economic conditions and market conditions
in the markets addressed by Broadcom; 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, the Registration Statement on Form S-1 dated September
30, 1998, and the Company's 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. |
