Broadcom Reports Third Quarter 2008 Results

Tuesday, October 21st, 2008
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IRVINE, Calif. — Broadcom Corporation (Nasdaq: BRCM) today reported unaudited financial results for its third quarter ended September 30, 2008.

Net revenue for the third quarter of 2008 was $1.298 billion, an increase of 8.1% compared with the $1.201 billion reported for the second quarter of 2008 and an increase of 36.7% compared with the $950.0 million reported for the third quarter of 2007. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the third quarter of 2008 was $164.9 million, or $.31 per share (diluted), compared with GAAP net income of $134.8 million, or $.25 per share (diluted), for the second quarter of 2008, and GAAP net income of $27.8 million, or $.05 per share (diluted), for the third quarter of 2007.

Net revenue for the nine months ended September 30, 2008 was $3.532 billion, an increase of 28.5% from the $2.749 billion reported for the nine months ended September 30, 2007. Net income computed in accordance with GAAP for the nine months ended September 30, 2008 was $374.0 million, or $.70 per share (diluted), compared with GAAP net income of $123.0 million, or $.21 per share (diluted), for the nine months ended September 30, 2007.

Net revenue for the nine months ended September 30, 2008 included royalties of $109.2 million received pursuant to a patent license agreement entered into in July 2007. The royalty received in the second and third quarters of 2008 was $35.6 million and $38.0 million, respectively.

“The third quarter was a great quarter for Broadcom. We achieved record revenue and cash flow from operations, and demonstrated our commitment to deliver profitable growth,” said Scott A. McGregor, Broadcom’s President & Chief Executive Officer. “As in prior economic slowdowns, we expect to enhance our competitive positioning and drive the next wave of communications convergence. The widespread acceptance of our combination solutions validates our strategy, and together with our rapid transition to 65nm process technology, should enable us to emerge in a much stronger position when the economy recovers.”

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