Broadcom Reports Q3
Net revenue for the third quarter of 2006 was $902.6 million, a decrease of 4.1% from the $941.1 million reported for the second quarter of 2006 and an increase of 29.9% from the $695.0 million reported for the third quarter of 2005. Net revenue for the nine months ended September 30, 2006 was a record $2.744 billion, an increase of 48.3% from the $1.850 billion reported for the nine months ended September 30, 2005.
The company's cash, cash equivalents and short and long term marketable securities at September 30, 2006 totaled a record $2.554 billion, an increase of $177.2 million over the comparable balance at June 30, 2006 and an increase of $678.9 million over the comparable balance at December 31, 2005.
Due to the pending restatement of the company's historical financial statements (see below), all financial numbers presented in this release should be considered estimates.
"Despite the current near-term industry-wide challenges, we continue to experience strong design win momentum," said Scott A. McGregor, Broadcom's President and Chief Executive Officer. "The markets in which we compete continue to be favorable for Broadcom. Our broad technology portfolio enabled us to win new designs across a broad set of large and growing markets, such as digital television, 3G cellular, and next-generation wireless functionality for game platforms."
On September 8, 2006 and July 14, 2006 Broadcom provided preliminary reports regarding its voluntary review of equity award practices, commenced in May 2006. Since the review is ongoing, the company has limited the scope of its third quarter financial information released today to the selected unaudited GAAP financial information attached to this release. The company does not expect to be in a position to announce additional financial results for the second or third quarter of 2006 until its Audit Committee and Ernst & Young LLP have completed their equity award reviews and audit procedures, respectively, appropriate accounting adjustments and restated financial statements have been finalized for the first quarter of 2006 and prior periods, and amended Reports on Forms 10-K and 10-Q have been filed with the Securities and Exchange Commission (SEC) for the periods ended
December 31, 2005 and March 31, 2006, respectively. Please refer to the Reports on Form 8-K filed with the SEC on September 12, 2006 and July 14, 2006 for further information about the equity award review and the company's intention to restate its financial statements.
Due to the pending equity award review and restatements, it appears unlikely that Broadcom will be able to file its Quarterly Report on Form 10-Q for the period ended September 30, 2006 with the SEC by the due date of November 9, 2006.
As previously announced, Broadcom will conduct a conference call with analysts and investors to discuss its estimated third quarter 2006 financial information and current financial prospects today at 1:45 p.m. Pacific Time (4:45 p.m. Eastern Time). The company will broadcast the conference call via webcast over the Internet. To listen to the webcast, or to view the financial information to be discussed on the call, please visit the Investors section of the Broadcom website at www.broadcom.com/investors. The webcast will be recorded and available for replay until 5:00 p.m. Pacific Time, Thursday, November 2, 2006.
Broadcom Corp. (Nasdaq: BRCM)