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=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=
=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D As requested, your News Alert for BRCM follows from EquityAlert.com. To edit/discontinue your alerts please refer to end of message. PLEASE REVIEW THE NOTICE AND DISCLAIMER BELOW =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D= =3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D=3D =3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D= -=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D =3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D=3D-=3D-=3D-=3D-=3D Paid Advertisement -=3D-= =3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D- =3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D= -=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D FREE life insurance quotes. Compare quotes from top-rated companies INSTANTLY! Less than 30 seconds could SAVE you hundreds of dollars a year: http://205.210.134.51/a1.asp?ID=3D1528aa AOL USERS: copy & paste the link above into your browser. =3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D= -=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D =3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D= -=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D-=3D Broadcom Reports First Quarter 2001 Results IRVINE, Calif., Apr 18, 2001 (BUSINESS WIRE) -- Broadcom Corporation (Nasda= q: BRCM), the leading provider of integrated circuits enabling broadband communications, today reported financial results for the first fiscal quart= er, ended March 31, 2001. Gross revenue for the first quarter was $318.1 million, an increase of 66%= =20 over the $191.6 million reported in the first quarter of 2000 and a decrease of = 16% from the $378.8 million reported in the fourth quarter of 2000. Net revenue= =20 for the first quarter was $310.5 million, an increase of 62% over the $191.6=20 million reported in the first quarter of 2000 and a decrease of 9% from the $340.2 million reported in the fourth quarter of 2000. Net revenue includes the non-cash revenue deduction of the fair value of assumed performance-based warrants earned by certain customers. Pro forma net income was $24.2 million, or $.09 per share (diluted). This compares with pro forma net income of $44.9 million, or $.18 per share (diluted), for the same quarter in 2000, and pro forma net income of $88.8 million, or $.32 per share (diluted), in the fourth quarter of 2000. Dilute= d earnings per share for the quarter were based on 281.0 million weighted=20 average shares outstanding, compared to 252.6 million weighted average shares outstanding in the first quarter of 2000 and to 274.1 million weighted aver= age shares outstanding in the fourth quarter of 2000. Broadcom reports net income and diluted earnings per share on a pro forma= =20 basis, which excludes the effects of the non-cash revenue deduction related to performance-based warrants, acquisition-related expenses, certain=20 non-recurring settlement charges, and payroll taxes on certain stock option exercises. Including these charges, substantially all of which were non-cash, net loss= =20 for the first quarter was $356.9 million, or $1.43 per share, compared with net income of $38.6 million, or $.15 per share (diluted), in the same quarter o= f 2000, and with a net loss of $768.3 million, or $3.28 per share, in the fou= rth quarter of 2000. During the quarter, Broadcom announced and closed its acquisition of=20 ServerWorks Corporation, a leading supplier of high performance SystemI/O(TM) solutions= =20 for server and storage platforms, network appliances and workstations. Broadcom= =20 also completed the acquisition of Visiontech Ltd., a leading supplier of digital video/audio MPEG-2 compression and decompression chips enabling Personal Vi= deo Recording (PVR) and IP video streaming for the consumer electronics market. These acquisitions were accounted for under the purchase method of accounti= ng. "Our first quarter results met the revised expectations that we communicate= d=20 on March 6th. Looking ahead, as a result of the continued weakness in the communications sector, we have not yet seen improvement in order visibility= =20 from customers," said Dr. Henry T. Nicholas III, Broadcom's President and CEO. "Despite the current weakness that exists in the business, we continue to b= e confident that our product roadmaps in both the core and emerging markets w= ill position us well as the economy recovers." During the first quarter, Broadcom introduced several significant new=20 products. The company announced the world's first 0.13 micron CMOS Gigabit Copper Transceiver, a four channel device on a single monolithic chip. This produc= t enables cost-effective, high port count Gigabit Ethernet switches and route= rs=20 by doubling port density and reducing size and power requirements by 50%. This industry leading product marks the fourth generation of Gigabit transceiver products from Broadcom. Broadcom's new products for optical communications applications included th= e world's first system-on-a-chip OC-48 line card, the world's first single-ch= ip OC-192 CMOS transceiver, a low power and low cost OC-192 framer and the=20 world's lowest power 10-Gigabit CMOS limiting amplifier. These product introduction= s position Broadcom very well in the market for broadband optical=20 communications. Broadcom's newly acquired ServerWorks business made two noteworthy=20 announcements during the first quarter. First, ServerWorks unveiled its new Grand=20 Champion(TM) architecture for future Intel(R) Xeon(TM) based servers. This product is th= e first to support PCI-X, the new high performance input/output standard for server and workstation platforms and the first to deliver memory bandwidth = of 6.4 Gbytes/second or four times the company's previous solutions. In additi= on, ServerWorks announced new SystemI/O logic that is optimized for dense Inter= net network servers produced by OEM customers such as Compaq, Dell, IBM, NEC an= d Siemens. During the quarter, the Home Networking Business Unit extended its industry leading position by surpassing the two million unit milestone for total num= ber of units shipped. HomePNA(TM), which utilizes the phone lines already in a= =20 home, continues to be the most widely produced home networking technology. Broadcom also announced, sampled, gained design wins and has begun shipping= =20 the world's first single-chip IP phone solution incorporating Ethernet switch technology, dual Ethernet transceivers, DSP and RISC processor cores and=20 analog CODECs for handset and speakerphone support. This highly integrated Etherne= t=20 IP phone chip enables toll-quality IP phones with the lowest power consumption= . Broadcom also introduced the first all-CMOS Bluetooth(TM) radio to achieve Bluetooth qualification. This radio is designed specifically for use in mob= ile phone handsets and further extends Broadcom's Blutonium(TM) line of Bluetoo= th solutions. Broadcom's tuner chip was the first to receive CableLabs(TM) certification = and EuroDOCSIS certification. This will continue to allow manufacturers to=20 utilize a highly integrated CMOS tuner chip to replace the 200-plus discrete componen= ts housed in a tuner can to achieve greater reliability while meeting industry standards. Broadcom will conduct a conference call with analysts and investors to disc= uss its first quarter 2001 financial results and current financial prospects to= day at 4:45 p.m. Eastern Time (1:45 p.m. Pacific Time). The company will broadc= ast 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 b= e recorded and available for replay until 5:00 p.m. Pacific Time on April 27, 2001. About Broadcom Broadcom Corporation is the leading provider of highly integrated silicon solutions that enable broadband communications and networking of voice, vid= eo and data services. Using proprietary technologies and advanced design methodologies, Broadcom designs, develops and supplies complete=20 system-on-a-chip solutions and related applications for digital cable set-top boxes and cabl= e modems, high-speed local, metropolitan and wide area and optical networks,= =20 home networking, Voice over Internet Protocol (VoIP), carrier access, residentia= l broadband gateways, direct broadcast satellite and terrestrial digital broadcast, digital subscriber lines (xDSL), wireless communications, SystemI/O(TM) server solutions and network processing. Broadcom is=20 headquartered in Irvine, Calif., and may be contacted at 949-450-8700 or at=20 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," "wi= ll" and variations of these words or similar expressions are intended to identi= fy 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 speak only as of the date hereof, and are base= d upon the information available to us now. Such information is subject to=20 change, and we will not necessarily inform you of such changes. These statements ar= e=20 not guarantees of future performance and are subject to certain risks,=20 uncertainties and assumptions that are difficult to predict. Therefore, our actual result= s 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, bu= t=20 are not limited to, general economic conditions and specific conditions in the markets we address, including the recent significant economic slowdown in t= he technology sector and semiconductor industry; the timing, rescheduling or cancellation of significant customer orders; the loss of a key customer; ou= r ability to specify, develop or acquire, 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 our target markets; delays in the adoption and acceptance of industry standards in those markets; our ability to renegotia= te=20 or terminate on acceptable terms the product purchase and development agreemen= ts and performance-based warrants assumed in certain acquisitions; results of changes in our accounting for the performance-based warrants; the volume of= =20 our product sales and pricing concessions on volume sales; the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; the effectiveness o= f=20 our expense and product cost control and reduction efforts; intellectual proper= ty disputes and customer indemnification claims; the availability and pricing = of foundry and assembly capacity and raw materials; the risks inherent in our acquisitions of technologies and businesses, including the successful=20 completion of technology and product development through volume production, integratio= n issues and costs, and contractual, intellectual property and other issues; fluctuations in the manufacturing yields of our third party semiconductor foundries and other problems or delays in the fabrication, assembly, testin= g=20 or delivery of our products; the risks of producing products with new supplier= s=20 and at new fabrication and assembly facilities; problems or delays that we may= =20 face in shifting our products to smaller geometry process technologies and in achieving higher levels of design integration; the effects of new and emerg= ing technologies; the risks and uncertainties associated with our international operations; our ability to retain and hire key executives, technical person= nel and other employees in the numbers, with the capabilities, and at the compensation levels needed to implement our business and product plans;=20 changes in our product or customer mix; the quality of our products and any=20 remediation costs; the effects of natural disasters and other events beyond our control= ;=20 the level of orders received that can be shipped in a fiscal quarter; and other factors. Our Annual Report on Form 10-K, forthcoming Quarterly Reports on Form 10-Q, recent Current Reports on Forms 8-K and 8-K/A, and other SEC filings discus= s 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(R), SystemI/O(TM), Grand Champion(TM), Blutonium(TM) and the pulse= =20 logo are trademarks of Broadcom Corporation and/or its affiliates in the United States and certain other countries. All other trademarks mentioned are the property of their respective owners. BROADCOM CORPORATION Unaudited Pro Forma Consolidated Statements of Operations (In thousands, except per share amounts) Three Months Ended March 31, 2001 2000 Gross revenue $ 318,118 $ 191,591 Cost of revenue 147,343 78,838 Gross profit 170,775 112,753 Operating expense: Research and development 108,734 42,566 Selling, general and administrative 38,821 17,505 Income from operations 23,220 52,682 Interest and other income, net 7,023 3,425 Income before income taxes 30,243 56,107 Provision for income taxes 6,048 11,222 Pro forma net income $ 24,195 $ 44,885 Pro forma basic earnings per share $ .10 $ .21 Pro forma diluted earnings per share $ .09 $ .18 Weighted average shares (basic) 249,689 211,217 Weighted average shares (diluted) 280,950 252,577 Pro Forma Only The above pro forma statements are based upon our unaudited consolidated statements of operations for the periods shown, with certain adjustments. The pro forma statement for the three months ended March 31, 2001 has been adjusted to eliminate a non-cash revenue deduction of $7.6 million constituting the fair value of performance-based warrants earned by certain customers; $109.7 million of in-process research and development expense; $1.5 million of payroll tax expense on certain stock option exercises; $119.7 million of stock-based compensation expense related to mergers and acquisitions ("M&A"); $218.3 million of amortization of goodwill and purchased intangible assets related to M&A; and $3.0 million of litigation settlement costs; and reflects a pro forma effective tax rate of approximately 20%. The pro forma statement for the three months ended March 31, 2000 has been adjusted to eliminate $3.7 million of payroll tax expense on certain stock option exercises; $1.3 million of stock-based compensation expense related to M&A; and $2.9 million of merger-related costs; and reflects a pro forma effective tax rate of approximately 20%. All historical financial information has been restated to give retroactive effect to acquisitions accounted for using the pooling-of-interests method. BROADCOM CORPORATION Unaudited Consolidated Statements of Operations (In thousands, except per share amounts) Three Months Ended March 31, 2001 2000 Gross revenue $ 318,118 $ 191,591 Less: fair value of warrants earned by customers (1) (7,617) -- Net revenue 310,501 191,591 Cost of revenue (2) 162,952 79,077 Gross profit 147,549 112,514 Operating expense: Research and development (3) (4) 109,532 44,772 Selling, general and administrative (3) (4) 39,404 18,751 Stock-based compensation (5) 115,753 1,228 Amortization of goodwill (5) 200,657 -- Amortization of purchased intangible assets (5) 6,097 -- In-process research and development (5) 109,710 -- Merger-related costs -- 2,901 Litigation settlement costs 3,000 -- Income (loss) from operations (436,604) 44,862 Interest and other income, net 7,023 3,425 Income (loss) before income taxes (429,581) 48,287 Provision (benefit) for income taxes (72,729) 9,658 Net income (loss) $ (356,852) $ 38,629 Basic earnings (loss) per share $ (1.43) $ .18 Diluted earnings (loss) per share $ (1.43) $ .15 Weighted average shares (basic) 249,689 211,217 Weighted average shares (diluted) 249,689 252,577 Notes: All historical financial information has been restated to give retroactive effect to acquisitions accounted for using the pooling-of-interests method. (1) In connection with certain acquisitions, the Company assumed a number of purchase and development agreements whereby performance-based warrants were granted to certain customers. In each period in which the warrants are earned, a non-cash revenue deduction for the fair value of the warrants is recorded. (2) Cost of revenue includes the following: Stock-based compensation $ 3,897 $ 37 Amortization of purchased intangible assets 11,578 -- Payroll tax expense on certain stock option exercises 134 202 $ 15,609 $ 239 (3) Excludes stock-based compensation expense as follows: Research and development $ 77,480 $ 841 Selling, general and administrative 38,273 387 $ 115,753 $ 1,228 Excludes amortization of purchased intangible assets as follows: Research and development $ 5,886 $ -- Selling, general and administrative 211 -- $ 6,097 $ -- (4) Includes employer payroll tax expense on certain stock option exercises as follows: Research and development $ 798 $ 2,206 Selling, general and administrative 583 1,246 $ 1,381 $ 3,452 (5) Represents non-cash acquisition-related expenses charged to operations. BROADCOM CORPORATION Condensed Consolidated Balance Sheets (In thousands) March 31, December 31, 2001 2000 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 564,790 $ 523,904 Short-term investments 46,129 77,682 Accounts receivable, net 146,703 172,314 Inventory 75,503 52,137 Deferred taxes 38,511 10,397 Other current assets 45,980 39,220 Total current assets 917,616 875,654 Property and equipment, net 154,947 132,870 Long-term investments 101,446 1,984 Deferred taxes 255,381 351,937 Goodwill and purchased intangible assets, net 3,954,906 3,260,464 Other assets 48,612 54,913 Total assets $ 5,432,908 $ 4,677,822 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Trade accounts payable $ 116,948 $ 78,163 Wages and related benefits 38,496 34,720 Accrued liabilities 169,929 66,030 Current portion of long-term debt 88,255 23,649 Total current liabilities 413,628 202,562 Long-term debt, less current portion 63,595 -- Shareholders' equity 4,955,685 4,475,260 Total liabilities and shareholders' equity $ 5,432,908 $ 4,677,822 CONTACT: Broadcom Corp., Irvine Bill Blanning or Eileen Algaze (media) 949/585-5555 or 949/585-5971 blanning@broadcom.com or ealgaze@broadcom.com or Nick Kormeluk (investor relations), 949/585-6932 nickk@broadcom.com www.broadcom.com URL: http://www.businesswire.com Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. Copyright (C) 2001 Business Wire. All rights reserved. -0- KEYWORD: CALIFORNIA INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS HARDWARE NETWORKING TELECOMMUNICATIONS EARNINGS ****************** TO EDIT YOUR EQUITY ALERTS ******************** To unsubscribe or edit your alerts, visit http://www.equityalert.com/alerts.asp?uid=3Dalewis34&;xid=3D40352 ****************************************************************** ***IMPORTANT NOTICE AND DISCLAIMER REGARDING THIS COURTESY EMAIL** At your request, as a subscriber to our service, this email alert is being sent to you as a courtesy and is for information purposes only. We are a financial news re-distributor. We are not an investment advisory and do not purport to tell or suggest which companies you should monitor or which securities you should purchase or sell. 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