IRVINE, Calif., July 30,
2015 /PRNewswire/ --
Second Quarter
2015 Results
|
|
GAAP
|
|
Non-GAAP
|
Net
revenue
|
|
$2.10
billion
|
|
|
Net income per
share
|
|
$.63
|
|
$.72
|
|
Broadcom Corporation (NASDAQ: BRCM), a global innovation leader
in semiconductor solutions for wired and wireless communications,
today reported unaudited financial results for its second quarter
ended June 30, 2015.
"Broadcom delivered revenue that was up sequentially and year
over year during the second quarter, driven by growth in the
high-end smartphone, broadband access, and networking markets,"
said Scott McGregor, Broadcom's
President and Chief Executive Officer. "The most important
news in the quarter was the May 28th
announcement of the agreement for Avago Technologies Limited to
acquire Broadcom. Once closed, we expect this transaction to
create the world's leading diversified communications semiconductor
company with combined annual revenue of approximately $15 billion. We expect this transaction to
significantly enhance long term shareholder value and are excited
about the future of the combined company."
Net revenue for the second quarter of 2015 was $2.10 billion. This represents an increase of
1.8% compared with the $2.06 billion
reported for the first quarter of 2015 and an increase of 2.7%
compared with the $2.04 billion
reported for the second quarter of 2014. Net income computed in
accordance with U.S. generally accepted accounting principles
(GAAP) for the second quarter of 2015 was $386 million, or $0.63 per share (diluted), compared with GAAP net
income of $209 million, or
$0.34 per share (diluted), for the
first quarter of 2015 and GAAP net loss of $1 million, or $0.00 per share (diluted), for the second quarter
of 2014.
GAAP net income for the second quarter of 2015 included costs
associated with the proposed acquisition by Avago of $22 million, or $0.04 per share. GAAP net income for the first
quarter of 2015 included impairment charges for long-lived assets
of $143 million, or $0.23 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
our 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
$.08 per share.
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 diluted net income per
share." A discussion of Broadcom's use of these and other non-GAAP
financial measures is set forth below. Reconciliations of GAAP to
non-GAAP financial measures for the three months ended
June 30, 2015, March 31, 2015 and June 30, 2014,
respectively, and the six months ended June
30, 2015 and 2014 appear in the financial statements portion
of this release under the heading "Unaudited Schedule of Selected
GAAP to Non-GAAP Adjustments."
Non-GAAP net income for the second quarter of 2015 was
$445 million, or $0.72 per share (diluted), compared with non-GAAP
net income of $390 million, or
$0.64 per share (diluted), for the
first quarter of 2015 and non-GAAP net income of $290 million, or $0.49 per share (diluted), for the second quarter
of 2014.
The financial results included in this release are unaudited.
The audited financial statements of the company for the year ended
December 31, 2014 are included in Broadcom's Annual Report on
Form 10-K, filed with the SEC on January 29,
2015.
In light of Broadcom's pending transaction with Avago, Broadcom
will discontinue conducting conference calls with analysts and
investors to discuss its financial results.
About Broadcom
Broadcom Corporation (NASDAQ: BRCM), a FORTUNE 500®
company, is a global leader and innovator in semiconductor
solutions for wired and wireless communications.
Broadcom® products seamlessly deliver voice, video, data
and multimedia connectivity in the home, office and mobile
environments. With one of the industry's broadest portfolio of
state-of-the-art system-on-a-chip solutions, Broadcom is changing
the world by Connecting everything®. For more
information, go to www.broadcom.com.
Note Regarding Use of Non-GAAP Financial Measures
Broadcom reports the following measures in accordance with GAAP and
on a non-GAAP basis: (i) cost of revenue, (ii) gross profit,
(iii) gross margin, (iv) net income (loss), and
(v) diluted net income (loss) per share (EPS). Broadcom's
non-GAAP cost of revenue, non-GAAP gross profit, and non-GAAP gross
margin excludes certain charges related to acquisitions and certain
inventory charges relating to its decision to exit the cellular
baseband business. Acquisition-related charges include the
amortization of purchased intangible assets and the amortization of
acquired inventory valuation step-up. In addition to the exclusions
noted above, Broadcom's non-GAAP net income and diluted net income
per share also exclude impairment of long-lived assets, settlement
costs (gains), restructuring costs (reversals), costs associated
with the proposed acquisition by Avago, charitable contributions,
gain on sale of assets, gains (losses) on strategic investments,
other charges (gains), tax benefits resulting from reductions in
U.S. valuation allowance on certain deferred tax assets due to the
recording of net deferred tax liabilities for identifiable
intangible assets under purchase accounting, and tax benefits
resulting from the reduction of certain foreign deferred tax
liabilities due to the impairment of long-lived assets.
Reconciliations of GAAP to non-GAAP financial measures for the
three months ended June 30, 2015, March 31, 2015 and
June 30, 2014, respectively, and the six months ended
June 30, 2015 and 2014 appear in the
financial statements portion of this release under the heading
"Unaudited Schedule of Selected GAAP to Non-GAAP Adjustments." Some
totals or amounts may not add or conform to prior period
presentations due to rounding.
Broadcom believes that the presentation of these non-GAAP
measures provides important supplemental information to management
and investors regarding financial and business trends relating to
its financial condition and results of operations. Broadcom's
management believes that the use of these non-GAAP financial
measures provides consistency and comparability among and between
results from prior periods or forecasts and future prospects, and
also facilitates comparisons with other companies in its industry,
many of which use similar non-GAAP financial measures to supplement
their GAAP results. Broadcom's management has historically used
these non-GAAP financial measures when evaluating operating
performance, because they believe that the inclusion or exclusion
of the items described above provides insight into core operating
results, the ability to generate cash and underlying business
trends affecting performance. Broadcom has chosen to provide this
information to investors to enable them to perform additional
analysis of past, present and future operating performance and as a
supplemental means to evaluate ongoing core operations. The
non-GAAP financial information presented herein should be
considered supplemental to, and not as a substitute for, or
superior to, financial measures calculated in accordance with
GAAP.
For additional information on the items excluded by Broadcom
from one or more of its non-GAAP financial measures, refer to the
Form 8-K regarding this release furnished today to the SEC.
Cautions Regarding Forward-Looking Statements:
All statements included or incorporated by reference in this
release, other than statements or characterizations of historical
fact, are forward-looking statements within the meaning of the
federal securities laws, including the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
based on Broadcom's current expectations, estimates and projections
about its business and industry, management's beliefs, and certain
assumptions made by Broadcom, all of which are subject to change.
Forward-looking statements can often be identified by words such as
"anticipates," "expects," "intends," "plans," "predicts,"
"believes," "seeks," "estimates," "may," "will," "should," "would,"
"could," "potential," "continue," "ongoing," similar expressions,
and variations or negatives of these words. Examples of such
forward-looking statements include, but are not limited to,
statements regarding the the transaction with Avago and guidance
provided on future revenue, product gross margin and operating
expenses for the third quarter of 2015 (on both a GAAP and non-GAAP
basis). These forward-looking statements are not guarantees of
future results and are subject to risks, uncertainties and
assumptions that could cause Broadcom's actual results to differ
materially and adversely from those expressed in any
forward-looking statement.
These risks and uncertainties include, but are not limited to
the following:
- Broadcom's quarterly operating results may fluctuate
significantly.
- The announcement and pendency of Broadcom's agreement to
be acquired by Avago may have an adverse effect on Broadcom's
business and share price.
- Litigation challenging the Avago Agreement may prevent
the Transaction from being consummated at all or within the
expected timeframe.
- The failure of Broadcom's pending acquisition by Avago to
be completed may adversely affect Broadcom's business and share
price.
- Broadcom depends on a few significant customers for a
substantial portion of its revenue.
- Broadcom may fail to appropriately adjust its operations
in response to changes in its strategy or market
demand.
- Broadcom faces intense competition.
- Broadcom's operating results may be adversely impacted by
worldwide economic uncertainties and specific conditions in the
markets it addresses.
- Broadcom may be unable to attract, retain or motivate key
personnel.
- Broadcom manufactures and sells complex products and may
be unable to successfully develop and introduce new
products.
- Broadcom is exposed to risks associated with its
international operations.
- Broadcom's stock price is highly volatile.
- Broadcom's business is subject to potential tax
liabilities.
- Broadcom may be required to defend against alleged
infringement of intellectual property rights of others and/or may
be unable to adequately protect or enforce its own intellectual
property rights.
- Broadcom is subject to order and shipment
uncertainties.
- Broadcom depends on third parties to fabricate, assemble
and test its products.
- Broadcom's systems are subject to security breaches and
other cybersecurity incidents.
- Broadcom faces risks associated with its
acquisitions.
- Government regulation may adversely affect Broadcom's
business.
- Broadcom's future ability to return capital to
shareholders in the form of dividends may be impacted by the
availability of U.S. cash.
- Broadcom's articles of incorporation and bylaws contain
anti-takeover provisions.
- Broadcom's co-founders and their affiliates may strongly
influence the outcome of matters that require the approval of
Broadcom's shareholders, such as the approval of the Avago
Agreement and the Transaction.
Broadcom's Annual Report on Form 10-K for the year ended
December 31, 2014, subsequent Quarterly Reports on Form 10-Q,
recent Current Reports on Form 8-K, and other SEC filings, discuss
the foregoing risks as well as other important risk factors that
could contribute to such differences or otherwise affect Broadcom's
business, results of operations and financial condition. The
forward-looking statements used in this release speak only as of
the date they are made. Broadcom undertakes no obligation to revise
or update publicly any forward-looking statement to reflect future
events or circumstances.
Additional Information and Where to Find It
This document does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval nor shall there be any sale of securities in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of any such jurisdiction. The proposed transaction
will be submitted to the shareholders of each of Broadcom and Avago
for their consideration. On July 29,
2015, Pavonia Limited ("Holdco") and Safari Cayman L.P.
("Holdco LP") filed with the SEC a Registration Statement on Form
S-4 which includes the preliminary joint proxy statement of Avago
and Broadcom and also constitutes a prospectus of Holdco and Holdco
LP. Each of Broadcom and Avago will provide the joint proxy
statement/prospectus to their respective shareholders. These
materials are not yet final and will be amended. Broadcom and
Avago also plan to file other documents with the SEC regarding the
proposed transaction. This document is not a substitute for
any prospectus, proxy statement or any other document which
Broadcom and Avago has filed or may file with the SEC in connection
with the proposed transaction. INVESTORS AND SECURITY HOLDERS
OF BROADCOM AND AVAGO ARE URGED TO READ THE JOINT PROXY
STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT WILL BE
FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME
AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT
INFORMATION ABOUT THE PROPOSED TRANSACTION. You may obtain copies
of all documents filed with the SEC regarding this transaction,
free of charge, at the SEC's website (www.sec.gov). In
addition, investors and shareholders will be able to obtain free
copies of the joint proxy statement/prospectus and other documents
filed with the SEC by the parties on Broadcom's Investor Relations
website (www.broadcom.com/investors) (for documents filed with the
SEC by Broadcom) or Avago Investor Relations at (408) 435-7400
or investor.relations@avagotech.com (for documents filed with the
SEC by Avago, Holdco or Holdco LP).
Participants in the Solicitation
Broadcom, Avago, Holdco and Holdco LP and certain of their
respective directors, executive officers and other members of
management and employees, under SEC rules may be deemed to be
participants in the solicitation of proxies from Broadcom and Avago
shareholders in connection with the proposed transaction.
Information regarding the persons who may, under the rules of the
SEC, be deemed participants in the solicitation of Broadcom and
Avago shareholders in connection with the proposed transaction are
set forth in the above-referenced joint proxy statement/prospectus.
You can find more detailed information about Broadcom's executive
officers and directors in its definitive proxy statement filed with
the SEC on March 27, 2015. You can
find more detailed information about Avago's executive officers and
directors in its definitive proxy statement filed with the SEC on
February 20, 2015.
Additional information about Broadcom's executive officers and
directors and Avago's executive officers and directors can be found
in the above-referenced Registration Statement on Form S-4.
Broadcom®, the pulse logo,
Connecting everything®, and the Connecting
everything logo are among the trademarks of Broadcom Corporation
and/or its affiliates in the United
States, certain other countries and/or the EU. Any other
trademarks or trade names mentioned are the property of their
respective owners.
BROADCOM
CORPORATION
|
Unaudited GAAP
Condensed Consolidated Statements of Operations
|
(In millions,
except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net
revenue
|
$
|
2,096
|
|
|
$
|
2,058
|
|
|
$
|
2,041
|
|
|
$
|
4,154
|
|
|
$
|
4,025
|
|
Cost of
revenue
|
939
|
|
|
972
|
|
|
1,005
|
|
|
1,911
|
|
|
2,009
|
|
Gross
profit
|
1,157
|
|
|
1,086
|
|
|
1,036
|
|
|
2,243
|
|
|
2,016
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research and
development
|
538
|
|
|
539
|
|
|
634
|
|
|
1,077
|
|
|
1,270
|
|
Selling, general and
administrative
|
188
|
|
|
177
|
|
|
182
|
|
|
365
|
|
|
367
|
|
Amortization of
purchased intangible assets
|
2
|
|
|
1
|
|
|
9
|
|
|
3
|
|
|
18
|
|
Impairments of
long-lived assets
|
—
|
|
|
143
|
|
|
165
|
|
|
143
|
|
|
190
|
|
Restructuring costs,
net
|
4
|
|
|
7
|
|
|
23
|
|
|
11
|
|
|
28
|
|
Settlement
costs
|
1
|
|
|
—
|
|
|
16
|
|
|
1
|
|
|
18
|
|
Other charges
(gains), net
|
22
|
|
|
(4)
|
|
|
(7)
|
|
|
18
|
|
|
(59)
|
|
Total operating
expenses
|
755
|
|
|
863
|
|
|
1,022
|
|
|
1,618
|
|
|
1,832
|
|
Income from
operations
|
402
|
|
|
223
|
|
|
14
|
|
|
625
|
|
|
184
|
|
Interest expense,
net
|
(3)
|
|
|
(5)
|
|
|
(5)
|
|
|
(8)
|
|
|
(10)
|
|
Other expense,
net
|
(5)
|
|
|
—
|
|
|
(8)
|
|
|
(5)
|
|
|
(5)
|
|
Income before income
taxes
|
394
|
|
|
218
|
|
|
1
|
|
|
612
|
|
|
169
|
|
Provision for income
taxes
|
8
|
|
|
9
|
|
|
2
|
|
|
17
|
|
|
5
|
|
Net income
(loss)
|
$
|
386
|
|
|
$
|
209
|
|
|
$
|
(1)
|
|
|
$
|
595
|
|
|
$
|
164
|
|
Net income (loss) per
share (basic)
|
$
|
0.64
|
|
|
$
|
0.35
|
|
|
$
|
—
|
|
|
$
|
0.99
|
|
|
$
|
0.28
|
|
Net income (loss) per
share (diluted)
|
$
|
0.63
|
|
|
$
|
0.34
|
|
|
$
|
—
|
|
|
$
|
0.97
|
|
|
$
|
0.28
|
|
Weighted average
shares (basic)
|
602
|
|
|
600
|
|
|
587
|
|
|
601
|
|
|
585
|
|
Weighted average
shares (diluted)
|
616
|
|
|
613
|
|
|
587
|
|
|
614
|
|
|
593
|
|
Dividends per
share
|
$
|
0.14
|
|
|
$
|
0.14
|
|
|
$
|
0.12
|
|
|
$
|
0.28
|
|
|
$
|
0.24
|
|
BROADCOM
CORPORATION
|
Unaudited
Condensed Consolidated Statements of Cash Flows
|
(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
$
|
386
|
|
|
$
|
209
|
|
|
$
|
(1)
|
|
|
$
|
595
|
|
|
$
|
164
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
43
|
|
|
39
|
|
|
47
|
|
|
82
|
|
|
99
|
|
Stock-based
compensation expense
|
86
|
|
|
90
|
|
|
113
|
|
|
|
176
|
|
|
|
233
|
|
Acquisition-related
items:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
33
|
|
|
37
|
|
|
56
|
|
|
70
|
|
|
115
|
|
Impairments of
long-lived assets
|
—
|
|
|
143
|
|
|
165
|
|
|
143
|
|
|
190
|
|
Loss (gain) on sale
of assets and other
|
—
|
|
|
3
|
|
|
2
|
|
|
3
|
|
|
(47)
|
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
(105)
|
|
|
(12)
|
|
|
(62)
|
|
|
(117)
|
|
|
(1)
|
|
Inventory
|
18
|
|
|
(99)
|
|
|
(85)
|
|
|
(81)
|
|
|
(90)
|
|
Prepaid expenses and
other assets
|
9
|
|
|
(65)
|
|
|
(8)
|
|
|
(56)
|
|
|
(4)
|
|
Accounts
payable
|
146
|
|
|
(58)
|
|
|
105
|
|
|
88
|
|
|
97
|
|
Deferred
revenue
|
(8)
|
|
|
(6)
|
|
|
(10)
|
|
|
(14)
|
|
|
105
|
|
Other accrued and
long-term liabilities
|
194
|
|
|
(306)
|
|
|
(97)
|
|
|
(112)
|
|
|
(30)
|
|
Net cash provided by
(used in) operating activities *
|
802
|
|
|
(25)
|
|
|
225
|
|
|
777
|
|
|
831
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
Net purchases of
property and equipment
|
(17)
|
|
|
(156)
|
|
|
(80)
|
|
|
(173)
|
|
|
(158)
|
|
Net cash paid for
acquired companies
|
—
|
|
|
—
|
|
|
(6)
|
|
|
—
|
|
|
(6)
|
|
Proceeds from sale
(purchases) of certain assets and other
|
—
|
|
|
(15)
|
|
|
—
|
|
|
(15)
|
|
|
90
|
|
Purchases of
marketable securities
|
(1,745)
|
|
|
(937)
|
|
|
(436)
|
|
|
(2,682)
|
|
|
(913)
|
|
Proceeds from sales
and maturities of marketable securities
|
1,179
|
|
|
579
|
|
|
467
|
|
|
1,758
|
|
|
970
|
|
Net cash used in
investing activities
|
(583)
|
|
|
(529)
|
|
|
(55)
|
|
|
(1,112)
|
|
|
(17)
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
Repurchases of
Class A common stock
|
(128)
|
|
|
(335)
|
|
|
(191)
|
|
|
(463)
|
|
|
(191)
|
|
Dividends
paid
|
(84)
|
|
|
(84)
|
|
|
(70)
|
|
|
(168)
|
|
|
(140)
|
|
Proceeds from
issuance of common stock
|
327
|
|
|
148
|
|
|
229
|
|
|
475
|
|
|
283
|
|
Minimum tax
withholding paid on behalf of employees for restricted stock
units
|
(35)
|
|
|
(43)
|
|
|
(28)
|
|
|
(78)
|
|
|
(59)
|
|
Net cash provided by
(used in) financing activities
|
80
|
|
|
(314)
|
|
|
(60)
|
|
|
(234)
|
|
|
(107)
|
|
Increase (decrease)
in cash and cash equivalents
|
299
|
|
|
(868)
|
|
|
110
|
|
|
(569)
|
|
|
707
|
|
Cash and cash
equivalents at beginning of period
|
1,677
|
|
|
2,545
|
|
|
2,254
|
|
|
2,545
|
|
|
1,657
|
|
Cash and cash
equivalents at end of period
|
$
|
1,976
|
|
|
$
|
1,677
|
|
|
$
|
2,364
|
|
|
$
|
1,976
|
|
|
$
|
2,364
|
|
|
|
*
|
Net cash provided by
operating activities reflects the normalization of working capital
levels following the Company's transition to a new enterprise
resource planning system in April 2015.
|
BROADCOM
CORPORATION
|
Unaudited
Condensed Consolidated Balance Sheets
|
(In
millions)
|
|
|
|
|
|
June 30,
2015
|
|
December 31,
2014
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
1,976
|
|
|
$
|
2,545
|
|
Short-term marketable
securities
|
1,208
|
|
|
1,061
|
|
Accounts receivable,
net
|
922
|
|
|
804
|
|
Inventory
|
612
|
|
|
531
|
|
Prepaid expenses and
other current assets
|
145
|
|
|
131
|
|
Total current
assets
|
4,863
|
|
|
5,072
|
|
Property and
equipment, net
|
626
|
|
|
516
|
|
Long-term marketable
securities
|
3,161
|
|
|
2,383
|
|
Goodwill
|
3,717
|
|
|
3,710
|
|
Purchased intangible
assets, net
|
462
|
|
|
664
|
|
Other
assets
|
161
|
|
|
126
|
|
Total
assets
|
$
|
12,990
|
|
|
$
|
12,471
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
594
|
|
|
$
|
503
|
|
Wages and related
benefits
|
220
|
|
|
220
|
|
Deferred revenue and
income
|
36
|
|
|
36
|
|
Accrued
liabilities
|
696
|
|
|
791
|
|
Total current
liabilities
|
1,546
|
|
|
1,550
|
|
Long-term
debt
|
1,594
|
|
|
1,593
|
|
Other long-term
liabilities
|
247
|
|
|
277
|
|
Commitments and
contingencies
|
|
|
|
Shareholders'
equity
|
9,603
|
|
|
9,051
|
|
Total liabilities and
shareholders' equity
|
$
|
12,990
|
|
|
$
|
12,471
|
|
UNAUDITED
SUPPLEMENTAL FINANCIAL INFORMATION
|
(In
millions)
|
|
June 30,
2015
|
|
March 31,
2015
|
|
December 31,
2014
|
Cash and cash
equivalents
|
$
|
1,976
|
|
|
$
|
1,677
|
|
|
$
|
2,545
|
|
Short-term marketable
securities
|
1,208
|
|
|
1,274
|
|
|
1,061
|
|
Long-term marketable
securities
|
3,161
|
|
|
2,533
|
|
|
2,383
|
|
Total cash, cash
equivalents and marketable securities
|
$
|
6,345
|
|
|
$
|
5,484
|
|
|
$
|
5,989
|
|
Increase from prior
period end
|
$
|
861
|
|
|
|
|
|
Increase from prior
year end
|
$
|
356
|
|
|
|
|
|
BROADCOM
CORPORATION
|
Unaudited Schedule
of Selected GAAP to Non-GAAP Adjustments
|
(In
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
June
30,
|
|
March
31,
|
|
June
30,
|
|
June
30,
|
|
2015
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
$
|
2,096
|
|
|
$
|
2,058
|
|
|
$
|
2,041
|
|
|
$
|
4,154
|
|
|
$
|
4,025
|
|
GAAP cost of
revenue
|
939
|
|
|
972
|
|
|
1,005
|
|
|
1,911
|
|
|
2,009
|
|
GAAP gross
profit
|
$
|
1,157
|
|
|
$
|
1,086
|
|
|
$
|
1,036
|
|
|
$
|
2,243
|
|
|
$
|
2,016
|
|
GAAP gross
margin
|
55.2
|
%
|
|
52.8
|
%
|
|
50.8
|
%
|
|
54.0
|
%
|
|
50.1
|
%
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of
revenue
|
$
|
939
|
|
|
$
|
972
|
|
|
$
|
1,005
|
|
|
$
|
1,911
|
|
|
$
|
2,009
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
(31)
|
|
|
(36)
|
|
|
(47)
|
|
|
(67)
|
|
|
(97)
|
|
Inventory charges
related to the exit of the cellular baseband business
|
1
|
|
|
2
|
|
|
(34)
|
|
|
3
|
|
|
(34)
|
|
Non-GAAP cost of
revenue
|
$
|
909
|
|
|
$
|
938
|
|
|
$
|
924
|
|
|
$
|
1,847
|
|
|
$
|
1,878
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
$
|
2,096
|
|
|
$
|
2,058
|
|
|
$
|
2,041
|
|
|
$
|
4,154
|
|
|
$
|
4,025
|
|
Non-GAAP cost of
revenue
|
909
|
|
|
938
|
|
|
924
|
|
|
1,847
|
|
|
1,878
|
|
Non-GAAP gross
profit
|
$
|
1,187
|
|
|
$
|
1,120
|
|
|
$
|
1,117
|
|
|
$
|
2,307
|
|
|
$
|
2,147
|
|
Non-GAAP gross
margin
|
56.6
|
%
|
|
54.4
|
%
|
|
54.7
|
%
|
|
55.5
|
%
|
|
53.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP net income
(loss)
|
$
|
386
|
|
|
$
|
209
|
|
|
$
|
(1)
|
|
|
$
|
595
|
|
|
$
|
164
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
33
|
|
|
37
|
|
|
56
|
|
|
70
|
|
|
115
|
|
Inventory charges
related to the exit of the cellular baseband business
|
(1)
|
|
|
(2)
|
|
|
34
|
|
|
(3)
|
|
|
34
|
|
Impairment of
long-lived assets
|
—
|
|
|
143
|
|
|
165
|
|
|
143
|
|
|
190
|
|
Settlement
costs
|
1
|
|
|
—
|
|
|
16
|
|
|
1
|
|
|
18
|
|
Other charges
(gains), net
|
22
|
|
|
(4)
|
|
|
(7)
|
|
|
18
|
|
|
(59)
|
|
Restructuring costs,
net
|
4
|
|
|
7
|
|
|
23
|
|
|
11
|
|
|
28
|
|
Other expense,
net
|
—
|
|
|
—
|
|
|
5
|
|
|
—
|
|
|
3
|
|
Certain income tax
benefit
|
—
|
|
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(6)
|
|
Total GAAP to
Non-GAAP adjustments
|
59
|
|
|
181
|
|
|
291
|
|
|
240
|
|
|
323
|
|
Non-GAAP net
income
|
$
|
445
|
|
|
$
|
390
|
|
|
$
|
290
|
|
|
$
|
835
|
|
|
$
|
487
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
calculation - diluted (GAAP and Non-GAAP)
|
616
|
|
|
613
|
|
|
587
|
|
|
614
|
|
|
593
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income (loss) per share
|
$
|
0.63
|
|
|
$
|
0.34
|
|
|
$
|
—
|
|
|
$
|
0.97
|
|
|
$
|
0.28
|
|
Non-GAAP diluted net
income per share
|
$
|
0.72
|
|
|
$
|
0.64
|
|
|
$
|
0.49
|
|
|
$
|
1.36
|
|
|
$
|
0.82
|
|
BROADCOM
CORPORATION
|
Guidance for the
Three Months Ending September 30, 2015
|
|
|
|
Three Months
Ending
|
|
September 30,
2015
|
Net
revenue
|
~$2.135 billion +/-
$75 million
|
|
|
Gross margin
(GAAP)
|
53.8% +/- 75 basis
points
|
Gross margin
(Non-GAAP)
|
55.3% +/- 75 basis
points
|
|
|
Research &
development, and selling, general & administrative
expenses
|
Down ~$10 million +/-
$10 million from Q2'15
|
Broadcom has based the preceding guidance for the three months
ending September 30, 2015 on expectations, assumptions and
estimates that it believes are reasonable given its assessment of
historical trends and other information reasonably available as of
July 30, 2015. Broadcom's guidance consists of predictions
only, however, and is subject to a wide range of known and unknown
business risks and uncertainties, many of which are beyond
Broadcom's control. The forecasts and projections contained in the
table above should not be regarded as representations by Broadcom
that the estimated results will be achieved. Projections and
estimates are necessarily speculative in nature and actual results
may vary materially from the guidance provided today. The non-GAAP
guidance presented above is consistent with the presentation of
non-GAAP results included elsewhere herein.
The guidance set forth in the above table should be read
together with the information under the caption, "Cautions
Regarding Forward-Looking Statements" above, Broadcom's Annual
Report on Form 10-K for the year ended December 31, 2014,
subsequent Quarterly Reports on Form 10-Q, recent Current Reports
on Form 8-K, and Broadcom's other SEC filings. Broadcom
undertakes no obligation to publicly update or revise any
forward-looking statements, including the guidance set forth
herein, to reflect future events or circumstances.
|
|
|
|
Corporate
Communications
|
Investor
Relations
|
|
Karen Kahn
|
T. Peter
Andrew
|
Sameer
Desai
|
Vice President,
Corporate Communications
|
Vice President,
Treasury and Investor Relations
|
Director, Investor
Relations
|
415-297-5035
|
949-926-6932
|
949-926-4425
|
kkahn@broadcom.com
|
andrewtp@broadcom.com
|
sameerd@broadcom.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/broadcom-reports-second-quarter-2015-results-300121512.html
SOURCE Broadcom Corporation; BRCM Corporate