Broadcom Files for Fourth Quarter

IRVINE, Calif. -- Broadcom Corporation (BRCM.O), the leading provider of integrated circuits enabling broadband communications, today reported financial results for the fourth fiscal quarter and year ended December 31, 2001. Net revenue for the fourth quarter of 2001 was $226.8 million, an increase of 6.2% over the $213.6 million reported in the third quarter of 2001 and a decrease of 33.3% from the $340.2 million reported in the fourth quarter of 2000. Pro forma net loss for the fourth quarter of 2001 was $28.8 million, or $.11 per share (basic and diluted). This compares with pro forma net loss of $34.0 million, or $.13 per share (basic and diluted), in the third quarter of 2001, and pro forma net income of $58.0 million, or $.21 per share (diluted), in the fourth quarter of 2000. Broadcom reports net income (loss) and diluted earnings (loss) per share on a pro forma basis, which excludes the effects of acquisition-related expenses, payroll taxes on certain stock option exercises, certain non-recurring charges, such as goodwill impairment, restructuring costs and loss on strategic investments, non-operating gains, and related income tax effects. Including these charges, gains and effects, substantially all of which were non-cash, net loss for the fourth quarter of 2001 was $329.6 million, or $1.27 per share (basic and diluted), compared with a net loss of $1,619.2 million, or $6.36 per share (basic and diluted), in the third quarter of 2001, and a net loss of $768.3 million, or $3.28 per share (basic and diluted), in the fourth quarter of 2000. Broadcom uses pro forma reporting internally to evaluate its operating performance and believes this presentation provides its investors with additional insight on its underlying operating results. Both net loss and pro forma net loss per share for the fourth quarter were based on 259.5 million weighted average shares outstanding (basic and diluted), compared to 254.5 million weighted average shares outstanding (basic and diluted) in the third quarter of 2001. Net loss and pro forma net income per share for the fourth quarter of 2000 were based on 234.1 million weighted average shares outstanding (basic and diluted) and 274.1 million weighted average shares outstanding (diluted), respectively. For the year ended December 31, 2001, net revenue was $961.8 million, a decrease of 12.3% from the $1,096.2 million reported for the year 2000. Pro forma net loss for the year 2001 was $85.8 million, compared to pro forma net income of $242.7 million reported for the year 2000. Pro forma net loss per share for the year 2001 was $.34 (basic and diluted) versus pro forma net income of $.93 per share (diluted) for the same period in 2000. Including the charges, gains and effects excluded in pro forma reporting, net loss for the full year 2001 was $2,742.0 million, or $10.79 per share (basic and diluted), compared to a net loss of $687.8 million, or $3.13 per share (basic and diluted), for the year 2000. Both net loss and pro forma net loss per share for the year ended December 31, 2001 were based on 254.0 million weighted average shares outstanding (basic and diluted); net loss and pro forma net income per share for the year ended December 31, 2000 were based on 220.1 million weighted average shares outstanding (basic and diluted) and 261.4 million weighted average shares outstanding (diluted), respectively. "Once again Broadcom delivered strong quarterly results, with revenue, gross margin and operating margin all improving over the prior quarter," said Dr. Henry T. Nicholas III, Broadcom's President and CEO. "We are seeing improvement in our end markets and we continue to generate a strong flow of new products for both existing and new markets. We plan to continue to leverage our breadth and core competencies in broadband to drive convergence of various markets."Broadcom Corp.