Broadcom Updates Financial Guidance for the Fourth Quarter of 2011

NEW YORK, Dec. 14, 2011 /PRNewswire/ -- Broadcom Corporation (NASDAQ: BRCM), a global leader in semiconductors for wired and wireless communications, today updated its financial guidance for the fourth quarter of 2011 at its 2011 Analyst Day in New York.

The following estimates are based on the current business outlook:

• Net Revenue: Increased to the high end of the prior range to approximately $1.8 billion.
• Product Gross Margin (GAAP and Non-GAAP): Increased to the high end of the prior range to roughly flat sequentially.
• R&D Plus SG&A Expenses (GAAP and Non-GAAP): Estimated to be approximately $5 million favorable on a GAAP basis and at the midpoint of prior guidance on a non-GAAP basis due to slower than anticipated hiring ramps and certain credits in the period.
• Ending Cash & Marketable Securities: Increase sequentially to approximately $5.1 billion on strong cash flow and a completed debt offering.

"Broadcom's Q4 is coming in stronger than expected driven by solid shipments and tight operational management," said Scott McGregor, President and Chief Executive Officer of Broadcom.

For further information regarding Broadcom's updated guidance for the fourth quarter of 2011, see the "Updated Guidance for the Three Months Ending December 31, 2011" at the end of this release.

Broadcom's fourth quarter business outlook was originally published in the company's third quarter 2011 earnings release, with the exception of fourth quarter guidance on ending cash and marketable securities, which was not provided previously. To access additional details of the updated financial outlook for the fourth quarter of 2011 and a replay of the 2011 Analyst Day including the associated slides, please go to the Investor Relations section of the Broadcom website at www.broadcom.com/investors.

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 the industry's broadest portfolio of state-of-the-art system-on-a-chip and embedded software solutions, Broadcom is changing the world by Connecting everything®.  For more information, go to www.broadcom.com.

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, gross product margin, operating expense targets and ending cash & marketable securities for the fourth quarter of 2011. 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 face intense competition.
• We face risks associated with our acquisition strategy.
• Our operating results may be adversely impacted by worldwide economic uncertainties and specific conditions in the markets we address.
• We may fail to adjust our operations in response to changes in demand.
• Our stock price is highly volatile.
• 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 are subject to order and shipment uncertainties.
• 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.
• We depend on third parties to fabricate, assemble and test our products.
• There can be no assurance that we will continue to declare cash dividends.
• We may be unable to attract, retain or motivate key personnel.
• Government regulation may adversely affect our business.
• Our business is subject to potential tax liabilities.
• Our articles of incorporation and bylaws contain anti-takeover provisions.
• Our co-founders and their affiliates may control the outcome of matters that require the approval of our shareholders.

Our Annual Report on Form 10-K for the year ended December 31, 2010, 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 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.

Broadcom has based the preceding guidance for the three months ending December 31, 2011 on expectations, assumptions and estimates that we believe are reasonable given our assessment of historical trends and other information reasonably available as of December 14, 2011.  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 as reported in our October 25, 2011 press release covering Broadcom's third quarter 2011 results.

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, 2010, 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, to reflect future events or circumstances.

SOURCE Broadcom Corporation; BRCM Corporate