IRVINE, Calif., Dec. 15 /PRNewswire-FirstCall/ -- Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today updated its financial guidance for the fourth quarter of 2009 at its 2009 Analyst Day.

Fourth Quarter Business Outlook

The following estimates are based on the current business outlook:

• Net revenue: Estimated to increase sequentially from the third quarter of 2009 by roughly 5% to approximately $1.32 billion, compared to our prior guidance of $1.25 billion.
• Product gross margin: Estimated to be up 100 basis points (bps) sequentially from the third quarter of 2009, compared to our prior guidance of up 20 bps to 50 bps sequentially.

For further information regarding our updated guidance for the fourth quarter of 2009, see the "Updated Guidance for the Three Months Ending December 31, 2009" schedule below.

"Our increased guidance reflects stronger than expected demand for products in our Broadband and Enterprise Networking markets versus our initial expectations entering the quarter," said Scott McGregor, President and Chief Executive Officer of Broadcom.

Broadcom's fourth quarter business outlook was originally published in the company's third quarter 2009 earnings release. To access additional details of the increased financial outlook for the fourth quarter of 2009 and a replay of the 2009 Analyst Day including the associated slides, please go to Broadcom's Investor Relations section of the Broadcom website at www.broadcom.com/investors

About Broadcom

Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom® products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. We provide the industry's broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support our core mission: Connecting everything®.

Broadcom is one of the world's largest fabless semiconductor companies, with 2008 revenue of $4.66 billion, and holds over 3,650 U.S. and over 1,450 foreign patents, more than 7,750 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video, data and multimedia.

A FORTUNE 500® company, Broadcom is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at +1.949.926.5000 or at www.broadcom.com.

Cautions regarding Forward Looking Statements:

All statements included or incorporated by reference in this release and in Broadcom's presentations at our 2009 Analyst Day, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, 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, gross margin and inventory turns for the fourth quarter of 2009. 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.

Factors that may cause Broadcom's actual results to differ materially from those expressed in forward-looking statements include, but are not limited to

• general economic and political conditions and specific conditions in the markets we address, including the continuing volatility in the technology sector and semiconductor industry, the recent global economic recession, trends in the broadband communications markets in various geographic regions, including seasonality in sales of consumer electronic products into which our products are incorporated, and possible disruption in commercial activities related to terrorist activity or armed conflict;
• the timing, rescheduling or cancellation of significant customer orders and our ability, as well as the ability of our customers, to manage inventory;
• our ability to adjust our operations in response to changes in demand for our existing products and services or demand for new products requested by our customers;
• the effectiveness of our expense and product cost control and reduction efforts;
• our ability to specify, develop or acquire, complete, introduce, market and transition to volume production new products and technologies in a cost-effective and timely manner;
• risks and uncertainties resulting from Broadcom's equity award review, including pending and potential new claims and proceedings related to such matters, such as shareholder litigation and any action by the SEC, U.S. Attorney's Office or other governmental agency that has resulted in, and could result in further, civil or criminal sanctions against the company and/or certain of our current or former officers, directors or employees, or other actions taken or required as a result of the review, and the extent to which we are able to receive reimbursement of our expenses related to such litigation and actions through our directors' and officers' liability insurance carriers. In the event that the company's coverage under these policies is reduced or denied or if the partial settlement of the federal derivative litigation is overturned on appeal, our financial exposure would be increased;
• the risks inherent in acquisitions of technologies and businesses, including the timing and successful completion of technology and product development through volume production, integration issues, potential contractual, intellectual property or employment issues, the risk that anticipated benefits of an acquisition may not be realized, and accounting treatment and charges;
• changes in current or future laws or the imposition of new laws or regulations, including new or changed tax regulations, or changes in the interpretation or enforcement of those laws or regulations;
• our dependence on a few significant customers for a substantial portion of our revenue;
• intellectual property disputes and customer indemnification claims and other types of litigation risk;
• the quality of our products and any potential remediation costs;
• our ability to retain, recruit and hire key executives, technical personnel and other employees in the positions and numbers, with the experience and capabilities, and at the compensation levels needed to implement our business and product plans;
• the availability and pricing of third party semiconductor foundry, assembly and test capacity and raw materials;
• fluctuations in the manufacturing yields of our third party semiconductor foundries and other problems or delays in the fabrication, assembly, testing or delivery of our products
• the rate at which our present and future customers and end-users adopt Broadcom's technologies and products in our target markets;
• competitive pressures and other factors such as the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products;
• changes in our product or customer mix;
• the risks and uncertainties associated with our international operations;
• our ability to timely and accurately predict market requirements and evolving industry standards and to identify opportunities in new markets;
• the volume of our product sales and pricing concessions on volume sales;
• problems, costs or delays that we may face in shifting our products to smaller geometry process technologies and in achieving higher levels of design integration;
• the risks of producing products with new suppliers and at new fabrication and assembly and test facilities;
• delays in the adoption and acceptance of industry standards in our target markets;
• the timing of customer-industry qualification and certification of our products and the risks of non-qualification or non-certification; and
• the level of orders received that can be shipped in a fiscal quarter.

Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings 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 in this release and our presentations at our 2009 Analyst Day speak only as of the date they were made. We undertake no obligation to revise or update publicly any forward-looking statement, except as required by law.

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
                Updated Guidance for the Three Months Ending December 31, 2009

                      Reported          Prior Guidance      Updated Guidance
                    Three Months         Three Months         Three Months
                   Ended September 30, Ending December 31, Ending December 31,
                        2009                2009                  2009
                   (in millions)

    Total net
     revenue           $1,254           Flat from Q3      Up ~ 5% sequentially

                                     Increase by around 20  Increase by around
    Product gross                     - 50 basis points      100 basis points
     margin *            48.5%              from Q3               from Q3


    Segment revenue
    Broadband
     Communications      $395            Flat from Q3               Up
    Enterprise
     Networking          $287            Flat from Q3               Up
    Mobile &
     Wireless            $572            Flat from Q3              Down

    Additional metric
    Inventory
     turns                8.0x                                    ~ 7.0x

* Includes stock-based compensation in cost of revenue, research and development and selling, general and administrative expenses.

Broadcom has based the preceding guidance for the three months ending December 31, 2009 on expectations, assumptions and estimates that we believe are reasonable given our assessment of historical trends and other information reasonably available as of December 15, 2009. 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 guidance set forth in the table above 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, 2008, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and our other Securities and Exchange Commission filings. We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, except as required by law.

    Broadcom Trade Press Contact            Broadcom Investor Relations
    Bill Blanning                           T. Peter Andrew
    Vice President,                         Vice President,
    Global Media Relations                  Corporate Communications
    949-926-5555                            949-926-5663
    blanning@broadcom.com                   andrewtp@broadcom.com

SOURCE Broadcom Corporation; BRCM Corporate

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