Broadcom reports third quarter 2014 results

Tuesday, October 21st, 2014
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IRVINE, Calif. — Broadcom Corporation (NASDAQ: BRCM), a global innovation leader in semiconductor solutions for wired and wireless communications, today reported unaudited financial results for its third quarter ended September 30, 2014.

Net revenue for the third quarter of 2014 was $2.26 billion. This represents an increase of 10.7% compared with the $2.04 billion reported for the second quarter of 2014 and an increase of 5.3% compared with the $2.15 billion reported for the third quarter of 2013. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the third quarter of 2014 was $98 million, or $0.16 per share (diluted), compared with GAAP net loss of $1 million, or $0.00 per share (basic and diluted), for the second quarter of 2014 and GAAP net income of $316 million, or $0.55 per share (basic and diluted), for the third quarter of 2013.

GAAP net income for the third quarter of 2014 included charges for restructuring costs related to Broadcom’s decision to exit the cellular baseband business totaling $114 million, or $0.19 per share, and additional charges for the impairment of purchased intangible assets of $200 million, or $0.33 per share. GAAP net loss for the second quarter of 2014 included charges for the impairment of long-lived assets, restructuring costs and an inventory write-down related to Broadcom’s decision to exit the cellular baseband business totaling $187 million, or $0.32 per share, and additional charges for the impairment of other purchased intangible assets, settlement costs and other gains of $48 million, or $0.08 per share. GAAP net income for the third quarter of 2013 included a one-time, non-recurring settlement gain of $75 million, a charitable contribution to Broadcom Foundation of $25 million and restructuring costs of $12 million, for a total positive impact to GAAP net income per share of $0.07.