Broadcom Reports Third Quarter 2007 Results

IRVINE, Calif. — Broadcom Corporation (Nasdaq: BRCM) today reported unaudited financial results for its third quarter ended September 30, 2007.

Net revenue for the third quarter of 2007 was $950.0 million, an increase of 5.8% compared with the $897.9 million reported for the second quarter of 2007 and an increase of 5.2% compared with the $902.6 million reported for the third quarter of 2006. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the third quarter of 2007 was $27.8 million, or $.05 per share (diluted), compared with GAAP net income of $34.3 million, or $.06 per share (diluted), for the second quarter of 2007, and GAAP net income of $110.2 million, or $.19 per share (diluted), for the third quarter of 2006.

Net revenue for the nine months ended September 30, 2007 was $2.749 billion, an increase of 0.2% compared with the $2.744 billion reported for the nine months ended September 30, 2006. Net income computed in accordance with GAAP for the nine months ended September 30, 2007 was $123.0 million, or $.21 per share (diluted), compared with GAAP net income of $334.0 million, or $.57 per share (diluted), for the nine months ended September 30, 2006.

In addition to GAAP results, Broadcom reports adjusted net income and adjusted net income per share, referred to respectively as “non-GAAP net income” and “non-GAAP net income per share.” A discussion of Broadcom’s use of these non-GAAP financial measures is set forth below, and reconciliations of GAAP net income to non-GAAP net income for the three and nine months ended September 30, 2007 and 2006, respectively, appear in the financial statements portion of this release.

Non-GAAP net income for the third quarter of 2007, computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was $164.5 million, or $.27 per share (diluted), compared with non-GAAP net income of $162.1 million, or $.27 per share (diluted), for the second quarter of 2007, and $191.4 million, or $.32 per share (diluted), for the third quarter of 2006.

Non-GAAP net income for the nine months ended September 30, 2007, computed with the adjustments to GAAP reporting set forth in the attached reconciliation, was $501.7 million, or $.84 per share (diluted), compared with non-GAAP net income of $637.6 million, or $1.05 per share (diluted), for the nine months ended September 30, 2006.

“New product cycles enabled Broadcom to attain record revenue and generate strong operating cash flow in the third quarter,” said Scott A. McGregor, Broadcom’s President and Chief Executive Officer. “Our record revenue was driven by strength in the Bluetooth®, wireless LAN and digital TV markets. Broadcom continues to be a product cycle-driven company with a strong track record of successfully entering new markets. Looking forward, in the fourth quarter and in 2008 we will continue to invest aggressively in research and development of products for the very large cellular handset market, as well as new product offerings to address more of our existing customers’ needs.”