IRVINE, Calif., Jan. 29, 2015 /PRNewswire/ --
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Fourth Quarter
2014 Results
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GAAP
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Non-GAAP
(including
SBC)
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Non-GAAP
(excluding
SBC)
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Net
revenue
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$2.14
billion
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Net income per
share
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$.64
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$.76
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$.90
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(including $0.14
of
stock-based
compensation)
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($0.03 better
than
First Call
consensus)
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Broadcom Corporation (NASDAQ: BRCM), a global innovation leader
in semiconductor solutions for wired and wireless communications,
today reported unaudited financial results for its fourth quarter
and year ended December 31, 2014.
"Better than anticipated revenue produced operating results
above consensus for the quarter, driven by stronger Broadband and
Connectivity revenue in the high-end smartphone and broadband
access markets," said Scott
McGregor, Broadcom's President and Chief Executive
Officer. "2014 was a pivotal year where we focused on our
core businesses, delivered record revenue and non-GAAP
profitability, increased capital return and enhanced corporate
governance."
Net revenue for the fourth quarter of 2014 was $2.14 billion. This represents a decrease of 5.2%
compared with the $2.26 billion
reported for the third quarter of 2014 and an increase of 3.8%
compared with the $2.06 billion
reported for the fourth quarter of 2013. Net income computed in
accordance with U.S. generally accepted accounting principles
(GAAP) for the fourth quarter of 2014 was $390 million, or $0.64 per share (diluted), compared with GAAP net
income of $98 million, or
$0.16 per share (diluted), for the
third quarter of 2014 and GAAP net income of $168 million, or $0.29 per share (diluted), for the fourth quarter
of 2013.
Net revenue for the year ended December 31, 2014 was
$8.43 billion. This represents an
increase in net revenue of 1.5% from the $8.31 billion reported for the year ended
December 31, 2013. Net income computed in accordance with GAAP
for the year ended December 31, 2014 was $652 million, or $1.08 per share (diluted), compared with GAAP net
income of $424 million, or
$0.73 per share (diluted), for the
year ended December 31, 2013.
GAAP net income for the fourth quarter of 2014 included charges
for restructuring costs and the impairment of long-lived assets,
primarily related to Broadcom's decision to exit its cellular
baseband business, of $30 million, or
$0.05 per share.
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 income for 2014 included (i) impairment charges for
long-lived assets, restructuring costs and an inventory write-down
primarily related to Broadcom's decision to exit the cellular
baseband business totaling $329
million, or $0.55 per share;
(ii) additional charges for the impairment of purchased intangible
assets of $260 million, or
$0.43 per share; (iii) settlements
costs of $16 million, or $0.03 per share; and (iv) a net gain on sale of
assets $60 million, or $0.10 per share.
GAAP net income for 2013 included (i) impairment charges for
purchased intangible assets of $511
million, or $0.88 per share,
which was primarily related to Broadcom's acquisition of NetLogic
Microsystems, Inc.; (ii) restructuring costs of $29 million, or $0.05 per share; (iii) a charitable contribution
to Broadcom Foundation of $25
million, or $0.04 per share;
and (iv) net settlement gains of $69
million, or $0.12 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." Beginning with the fourth quarter of 2014, Broadcom is
reporting (and plans to report in the future) non-GAAP results
calculated with the inclusion of stock-based compensation. All
prior-period amounts have been adjusted retrospectively to reflect
this change. For transitional purposes, Broadcom is also providing,
for the periods reported in this release only, non-GAAP net income
and non-GAAP diluted net income per share excluding
stock-based compensation. 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 December 31, 2014, September 30, 2014
and December 31, 2013, and the year ended December 31, 2014 and 2013 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 fourth quarter of 2014 was
$463 million, or $0.76 per share (diluted), compared with non-GAAP
net income of $461 million, or
$0.76 per share (diluted), for the
third quarter of 2014 and non-GAAP net income of $247 million, or $0.43 per share (diluted), for the fourth quarter
of 2013. Non-GAAP net income for the year ended December 31,
2014 was $1.41 billion, or
$2.35 per share (diluted), compared
with non-GAAP net income of $1.14
billion, or $1.95 per share
(diluted), for the year ended December 31, 2013.
Conference Call Information
As previously announced, Broadcom will conduct a conference call
with analysts and investors to discuss its fourth quarter and full
year 2014 financial results 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 and other
statistical information required by Securities and Exchange
Commission (SEC) Regulation G, please visit the Investors section
of the Broadcom website at www.broadcom.com/investors. The webcast
will be recorded and available for replay until 11:59 p.m. Pacific Time on Sunday,
February 22, 2015.
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 as soon as practicable.
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), 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 December 31, 2014, September 30, 2014
and December 31, 2013, respectively, and the year ended
December 31, 2014 and 2013 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.
Additionally, as noted above, for the periods reported herein
only, Broadcom has included non-GAAP net income and non-GAAP
diluted net income per share excluding stock-based
compensation. In future releases reporting its financial results,
Broadcom will now provide those metrics calculated with the
inclusion of stock-based compensation, as Broadcom now sets
financial targets for its reportable segments that include
stock-based compensation expense.
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 and the related conference call for analysts and investors,
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 our
current expectations, estimates and projections about our business
and industry, management's beliefs, and certain assumptions made by
us, 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, guidance provided on future revenue,
product gross margin and operating expenses for the first 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 our 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:
- Our quarterly operating results may
fluctuate significantly.
- We depend on a few significant customers
for a substantial portion of our revenue.
- We may fail to appropriately adjust our
operations in response to changes in our strategy or market
demand.
- We face intense competition.
- We manufacture and sell complex products
and may be unable to successfully develop and introduce new
products.
- We are exposed to risks associated with
our international operations.
- Our operating results may be adversely
impacted by worldwide economic uncertainties and specific
conditions in the markets we address.
- We may be unable to attract, retain or
motivate key personnel.
- Our stock price is highly
volatile.
- Our business is subject to potential tax
liabilities.
- We may be required to defend against
alleged infringement of intellectual property rights of others
and/or may be unable to adequately protect or enforce our own
intellectual property rights.
- We face risks associated with our
acquisition strategy.
- We are subject to order and shipment
uncertainties.
- We depend on third parties to fabricate,
assemble and test our products.
- Our systems are subject to security
breaches and other cybersecurity incidents.
- Government regulation may adversely affect
our business.
- Our future ability to return capital to
shareholders in the form of dividends or share repurchases may be
impacted by the availability of U.S. cash.
- Our articles of incorporation and bylaws
contain anti-takeover provisions.
- Our co-founders and their affiliates may
strongly influence the outcome of matters that require the approval
of our shareholders.
Our Annual Report on Form 10-K for the year ended
December 31, 2013, subsequent Quarterly Reports on Form 10-Q,
recent Current Reports on Form 8-K, and other SEC filings,
including our Annual Report on Form 10-K for the year ended
December 31, 2014 when it is filed,
discuss the foregoing risks as well as other important risk factors
that could contribute to such differences or otherwise affect our
business, results of operations and financial condition. The
forward-looking statements used in this release and the related
conference call for analysts and investors speak only as of the
date they are made. We undertake no obligation to revise or update
publicly any forward-looking statement to reflect future events or
circumstances.
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.
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BROADCOM
CORPORATION
|
Unaudited GAAP
Condensed Consolidated Statements of Operations
|
(In millions,
except per share amounts)
|
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|
|
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|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Net
revenue
|
$
|
2,143
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|
|
$
|
2,260
|
|
|
$
|
2,064
|
|
|
$
|
8,428
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|
|
$
|
8,305
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|
Cost of
revenue
|
1,012
|
|
|
1,077
|
|
|
1,026
|
|
|
4,098
|
|
|
4,088
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|
Gross
profit
|
1,131
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|
|
1,183
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|
|
1,038
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|
|
4,330
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|
|
4,217
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|
Operating
expenses:
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|
|
|
|
|
|
|
|
|
Research and
development
|
530
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|
|
573
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|
|
643
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|
|
2,373
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|
2,486
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|
Selling, general and
administrative
|
173
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|
|
176
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|
|
172
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|
|
716
|
|
|
706
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|
Amortization of
purchased intangible assets
|
3
|
|
|
8
|
|
|
14
|
|
|
29
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|
|
57
|
|
Impairments of
long-lived assets
|
14
|
|
|
200
|
|
|
—
|
|
|
404
|
|
|
511
|
|
Restructuring costs,
net
|
16
|
|
|
114
|
|
|
17
|
|
|
158
|
|
|
29
|
|
Settlement costs
(gains)
|
(4)
|
|
|
2
|
|
|
6
|
|
|
16
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|
|
(69)
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|
Other charges
(gains), net
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(60)
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|
|
25
|
|
Total operating
expenses
|
732
|
|
|
1,072
|
|
|
852
|
|
|
3,636
|
|
|
3,745
|
|
Income from
operations
|
399
|
|
|
111
|
|
|
186
|
|
|
694
|
|
|
472
|
|
Interest expense,
net
|
(9)
|
|
|
(17)
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|
|
(6)
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|
|
(36)
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|
|
(30)
|
|
Other income,
net
|
5
|
|
|
9
|
|
|
1
|
|
|
9
|
|
|
3
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|
Income before income
taxes
|
395
|
|
|
103
|
|
|
181
|
|
|
667
|
|
|
445
|
|
Provision for income
taxes
|
5
|
|
|
5
|
|
|
13
|
|
|
15
|
|
|
21
|
|
Net income
|
$
|
390
|
|
|
$
|
98
|
|
|
$
|
168
|
|
|
$
|
652
|
|
|
$
|
424
|
|
Net income per share
(basic)
|
$
|
0.65
|
|
|
$
|
0.17
|
|
|
$
|
0.29
|
|
|
$
|
1.11
|
|
|
$
|
0.74
|
|
Net income per share
(diluted)
|
$
|
0.64
|
|
|
$
|
0.16
|
|
|
$
|
0.29
|
|
|
$
|
1.08
|
|
|
$
|
0.73
|
|
Weighted average
shares (basic)
|
596
|
|
|
591
|
|
|
576
|
|
|
590
|
|
|
574
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|
Weighted average
shares (diluted)
|
610
|
|
|
607
|
|
|
581
|
|
|
601
|
|
|
584
|
|
|
|
|
|
|
|
|
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Dividends per
share
|
$
|
0.12
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|
|
$
|
0.12
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|
|
$
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0.11
|
|
|
$
|
0.48
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|
|
$
|
0.44
|
|
|
The following table presents details of total stock-based
compensation expense included in each functional line item
in the unaudited condensed consolidated statements of income
above:
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|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Cost of
revenue
|
$
|
5
|
|
|
$
|
6
|
|
|
$
|
6
|
|
|
$
|
22
|
|
|
$
|
25
|
|
Research and
development
|
67
|
|
|
73
|
|
|
83
|
|
|
304
|
|
|
363
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|
Selling, general and
administrative
|
25
|
|
|
28
|
|
|
28
|
|
|
111
|
|
|
130
|
|
|
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BROADCOM
CORPORATION
|
Unaudited
Condensed Consolidated Statements of Cash Flows
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(In
millions)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Operating
activities
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
390
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|
|
$
|
98
|
|
|
$
|
168
|
|
|
$
|
652
|
|
|
$
|
424
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
37
|
|
|
42
|
|
|
51
|
|
|
178
|
|
|
173
|
|
Stock-based
compensation expense
|
97
|
|
|
107
|
|
|
117
|
|
|
437
|
|
|
518
|
|
Acquisition-related
items:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
45
|
|
|
54
|
|
|
56
|
|
|
214
|
|
|
228
|
|
Impairments of
long-lived assets
|
14
|
|
|
200
|
|
|
—
|
|
|
404
|
|
|
511
|
|
Loss (gain) on sale
of assets and other
|
3
|
|
|
3
|
|
|
—
|
|
|
(41)
|
|
|
(2)
|
|
Changes in operating
assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
134
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|
|
(142)
|
|
|
57
|
|
|
(9)
|
|
|
(55)
|
|
Inventory
|
93
|
|
|
(10)
|
|
|
16
|
|
|
(7)
|
|
|
2
|
|
Prepaid expenses and
other assets
|
7
|
|
|
11
|
|
|
(28)
|
|
|
14
|
|
|
(25)
|
|
Accounts
payable
|
(176)
|
|
|
—
|
|
|
44
|
|
|
(79)
|
|
|
24
|
|
Deferred
revenue
|
(11)
|
|
|
(7)
|
|
|
(4)
|
|
|
87
|
|
|
(15)
|
|
Other accrued and
long-term liabilities
|
—
|
|
|
105
|
|
|
(86)
|
|
|
75
|
|
|
2
|
|
Net cash provided by
operating activities
|
633
|
|
|
461
|
|
|
391
|
|
|
1,925
|
|
|
1,785
|
|
Investing
activities
|
|
|
|
|
|
|
|
|
|
Net purchases of
property and equipment
|
(48)
|
|
|
(56)
|
|
|
(56)
|
|
|
(262)
|
|
|
(228)
|
|
Net cash paid for
acquired companies
|
(5)
|
|
|
(3)
|
|
|
(142)
|
|
|
(14)
|
|
|
(142)
|
|
Proceeds from sale of
certain assets and other
|
2
|
|
|
—
|
|
|
(15)
|
|
|
92
|
|
|
(15)
|
|
Purchases of
marketable securities
|
(2,003)
|
|
|
(955)
|
|
|
(468)
|
|
|
(3,871)
|
|
|
(2,682)
|
|
Proceeds from sales
and maturities of marketable securities
|
1,724
|
|
|
447
|
|
|
575
|
|
|
3,141
|
|
|
2,071
|
|
Net cash used in
investing activities
|
(330)
|
|
|
(567)
|
|
|
(106)
|
|
|
(914)
|
|
|
(996)
|
|
Financing
activities
|
|
|
|
|
|
|
|
|
|
Issuance of long-term
debt, net
|
—
|
|
|
592
|
|
|
—
|
|
|
592
|
|
|
—
|
|
Payments of long-term
debt
|
—
|
|
|
(400)
|
|
|
(300)
|
|
|
(400)
|
|
|
(300)
|
|
Repurchases of
Class A common stock
|
(104)
|
|
|
(227)
|
|
|
(2)
|
|
|
(522)
|
|
|
(597)
|
|
Dividends
paid
|
(72)
|
|
|
(71)
|
|
|
(64)
|
|
|
(283)
|
|
|
(254)
|
|
Proceeds from
issuance of common stock
|
198
|
|
|
136
|
|
|
240
|
|
|
617
|
|
|
532
|
|
Minimum tax
withholding paid on behalf of employees for restricted stock
units
|
(34)
|
|
|
(34)
|
|
|
(26)
|
|
|
(127)
|
|
|
(130)
|
|
Net cash used in
financing activities
|
(12)
|
|
|
(4)
|
|
|
(152)
|
|
|
(123)
|
|
|
(749)
|
|
Increase (decrease)
in cash and cash equivalents
|
291
|
|
|
(110)
|
|
|
133
|
|
|
888
|
|
|
40
|
|
Cash and cash
equivalents at beginning of period
|
2,254
|
|
|
2,364
|
|
|
1,524
|
|
|
1,657
|
|
|
1,617
|
|
Cash and cash
equivalents at end of period
|
$
|
2,545
|
|
|
$
|
2,254
|
|
|
$
|
1,657
|
|
|
$
|
2,545
|
|
|
$
|
1,657
|
|
|
|
BROADCOM
CORPORATION
|
Unaudited
Condensed Consolidated Balance Sheets
|
(In
millions)
|
|
|
|
|
|
December 31, 2014
|
|
December 31, 2013
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
Cash and cash
equivalents
|
$
|
2,545
|
|
|
$
|
1,657
|
|
Short-term marketable
securities
|
1,061
|
|
|
775
|
|
Accounts receivable,
net
|
804
|
|
|
795
|
|
Inventory
|
531
|
|
|
525
|
|
Prepaid expenses and
other current assets
|
131
|
|
|
163
|
|
Total current
assets
|
5,072
|
|
|
3,915
|
|
Property and
equipment, net
|
516
|
|
|
593
|
|
Long-term marketable
securities
|
2,383
|
|
|
1,939
|
|
Goodwill
|
3,710
|
|
|
3,793
|
|
Purchased intangible
assets, net
|
664
|
|
|
1,144
|
|
Other
assets
|
126
|
|
|
111
|
|
Total
assets
|
$
|
12,471
|
|
|
$
|
11,495
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
Accounts
payable
|
$
|
503
|
|
|
$
|
585
|
|
Wages and related
benefits
|
220
|
|
|
243
|
|
Deferred revenue and
income
|
36
|
|
|
21
|
|
Accrued
liabilities
|
791
|
|
|
647
|
|
Total current
liabilities
|
1,550
|
|
|
1,496
|
|
Long-term
debt
|
1,593
|
|
|
1,394
|
|
Other long-term
liabilities
|
277
|
|
|
234
|
|
Commitments and
contingencies
|
|
|
|
Shareholders'
equity
|
9,051
|
|
|
8,371
|
|
Total liabilities and
shareholders' equity
|
$
|
12,471
|
|
|
$
|
11,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
UNAUDITED
SUPPLEMENTAL FINANCIAL INFORMATION
|
(In
millions)
|
|
|
December 31, 2014
|
|
September 30, 2014
|
|
December 31, 2013
|
Cash and cash
equivalents
|
$
|
2,545
|
|
|
$
|
2,254
|
|
|
$
|
1,657
|
|
Short-term marketable
securities
|
1,061
|
|
|
1,068
|
|
|
775
|
|
Long-term marketable
securities
|
2,383
|
|
|
2,098
|
|
|
1,939
|
|
Total cash, cash
equivalents and marketable securities
|
$
|
5,989
|
|
|
$
|
5,420
|
|
|
$
|
4,371
|
|
Increase from prior
period end
|
$
|
569
|
|
|
|
|
|
Increase from prior
year end
|
$
|
1,618
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADCOM
CORPORATION
|
Unaudited Schedule
of Selected GAAP to Non-GAAP Adjustments
|
(In
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
$
|
2,143
|
|
|
$
|
2,260
|
|
|
$
|
2,064
|
|
|
$
|
8,428
|
|
|
8,305
|
|
GAAP cost of
revenue
|
1,012
|
|
|
1,077
|
|
|
1,026
|
|
|
4,098
|
|
|
4,088
|
|
GAAP gross
profit
|
$
|
1,131
|
|
|
$
|
1,183
|
|
|
$
|
1,038
|
|
|
$
|
4,330
|
|
|
$
|
4,217
|
|
GAAP gross
margin
|
52.8
|
%
|
|
52.3
|
%
|
|
50.3
|
%
|
|
51.4
|
%
|
|
50.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of
revenue
|
$
|
1,012
|
|
|
$
|
1,077
|
|
|
$
|
1,026
|
|
|
$
|
4,098
|
|
|
$
|
4,088
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
(42)
|
|
|
(46)
|
|
|
(42)
|
|
|
(185)
|
|
|
(171)
|
|
Amortization of
acquired inventory step-up and inventory charges related to the
exit of the cellular baseband business
|
—
|
|
|
7
|
|
|
—
|
|
|
(27)
|
|
|
(1)
|
|
Non-GAAP cost of
revenue
|
$
|
970
|
|
|
$
|
1,038
|
|
|
$
|
984
|
|
|
$
|
3,886
|
|
|
$
|
3,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
revenue
|
$
|
2,143
|
|
|
$
|
2,260
|
|
|
$
|
2,064
|
|
|
$
|
8,428
|
|
|
8,305
|
|
Non-GAAP cost of
revenue
|
970
|
|
|
1,038
|
|
|
984
|
|
|
3,886
|
|
|
3,916
|
|
Non-GAAP gross
profit
|
$
|
1,173
|
|
|
$
|
1,222
|
|
|
$
|
1,080
|
|
|
$
|
4,542
|
|
|
$
|
4,389
|
|
Non-GAAP gross
margin
|
54.7
|
%
|
|
54.1
|
%
|
|
52.3
|
%
|
|
53.9
|
%
|
|
52.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BROADCOM
CORPORATION
|
Unaudited Schedule
of Selected GAAP to Non-GAAP Adjustments
|
(In
millions)
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
December
31,
|
|
September
30,
|
|
December
31,
|
|
December
31,
|
|
2014
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
GAAP net
income
|
$
|
390
|
|
|
$
|
98
|
|
|
$
|
168
|
|
|
$
|
652
|
|
|
$
|
424
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Amortization of
purchased intangible assets
|
45
|
|
|
54
|
|
|
56
|
|
|
214
|
|
|
228
|
|
Amortization of
acquired inventory step-up and inventory charges related to the
exit of the cellular baseband business
|
—
|
|
|
(7)
|
|
|
—
|
|
|
27
|
|
|
1
|
|
Impairment of
long-lived assets
|
14
|
|
|
200
|
|
|
—
|
|
|
404
|
|
|
511
|
|
Settlement costs
(gains)
|
(4)
|
|
|
2
|
|
|
6
|
|
|
16
|
|
|
(69)
|
|
Other charges
(gains), net
|
—
|
|
|
(1)
|
|
|
—
|
|
|
(60)
|
|
|
25
|
|
Restructuring costs,
net
|
16
|
|
|
114
|
|
|
17
|
|
|
158
|
|
|
29
|
|
Other expense
(income), net
|
3
|
|
|
—
|
|
|
—
|
|
|
6
|
|
|
(1)
|
|
Certain income tax
expense (benefit)
|
(1)
|
|
|
1
|
|
|
—
|
|
|
(6)
|
|
|
(10)
|
|
Total GAAP to
Non-GAAP adjustments
|
$
|
73
|
|
|
$
|
363
|
|
|
$
|
79
|
|
|
$
|
759
|
|
|
$
|
714
|
|
Non-GAAP net income
(including stock-based compensation)
|
463
|
|
|
461
|
|
|
247
|
|
|
1,411
|
|
|
1,138
|
|
Stock-based
compensation and related payroll taxes
|
99
|
|
|
108
|
|
|
119
|
|
|
444
|
|
|
524
|
|
Non-GAAP net income
(excluding stock-based compensation)
|
$
|
562
|
|
|
$
|
569
|
|
|
$
|
366
|
|
|
$
|
1,855
|
|
|
$
|
1,662
|
|
|
|
|
|
|
|
|
|
|
|
Shares used in
calculation - diluted (GAAP and Non-GAAP)
|
610
|
|
|
607
|
|
|
581
|
|
|
601
|
|
|
584
|
|
Non-GAAP adjustment
*
|
16
|
|
|
20
|
|
|
25
|
|
|
23
|
|
|
28
|
|
Shares used in
calculation - diluted (Non-GAAP) (excluding stock-based
compensation)
|
626
|
|
|
627
|
|
|
606
|
|
|
624
|
|
|
612
|
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted net
income per share
|
$
|
0.64
|
|
|
$
|
0.16
|
|
|
$
|
0.29
|
|
|
$
|
1.08
|
|
|
$
|
0.73
|
|
Non-GAAP diluted net
income per share
|
$
|
0.76
|
|
|
$
|
0.76
|
|
|
$
|
0.43
|
|
|
$
|
2.35
|
|
|
$
|
1.95
|
|
Non-GAAP diluted net
income per share (excluding stock-based compensation)
|
$
|
0.90
|
|
|
$
|
0.91
|
|
|
$
|
0.60
|
|
|
$
|
2.97
|
|
|
$
|
2.72
|
|
|
*Represents the
benefits of compensation costs attributable to future services and
not yet recognized in the financial statements that are treated as
proceeds assumed to be used to repurchase shares under the GAAP
treasury stock method.
|
BROADCOM
CORPORATION
Guidance for the
Three Months Ending March 31, 2015
|
|
|
|
Three Months
Ending
March 31,
2015
|
Total net revenue
(GAAP)
|
~$2.00 billion +/-
$75 million
|
|
|
Gross margin
(GAAP)
|
52.8% +/- 75 basis
points
|
Gross margin
(Non-GAAP*)
|
54.7% +/- 75 basis
points
|
|
|
Research &
development and selling, general,
and administrative
expenses *
|
Up ~$5 million to
~$25 million from Q4'14
|
* Includes
stock-based compensation expense.
|
Broadcom has based the preceding guidance for the three months
ending March 31, 2015 on expectations, assumptions and
estimates that we believe are reasonable given our assessment of
historical trends and other information reasonably available as of
January 29, 2015. Our 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 our
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 we provide today. The non-GAAP
guidance presented above is consistent with the presentation of
non-GAAP results included elsewhere herein, which now includes
stock-based compensation expense.
The guidance set forth in the above table should be read
together with the information under the caption, "Cautions
Regarding Forward-Looking Statements" above, our Annual Report on
Form 10-K for the year ended December 31, 2013, subsequent
Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K,
and our other SEC filings, including our Annual Report on Form 10-K
for the year ended December 31, 2014
when it is filed. We undertake no obligation to publicly
update or revise any forward-looking statements, including the
guidance set forth herein, to reflect future events or
circumstances.
|
|
|
Broadcom Business
Press Contact
|
Broadcom Investor
Relations Contact
|
Karen Kahn
|
T. Peter
Andrew
|
Vice President,
Corporate Communications
|
Vice President,
Treasury and Investor Relations
|
415-297-5035
|
949-926-6932
|
kkahn@broadcom.com
|
andrewtp@broadcom.com
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/broadcom-reports-fourth-quarter-and-full-year-2014-results-300028051.html
SOURCE Broadcom Corporation; BRCM Corporate