Broadcom Q4 2011 Updated Guidance: Revenue to Reach High End of Previous Outlook

December 14, 2011

Broadcom 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.

Wall Street was expecting Q4 2011 revenue of $1.76 billion.

Broadcom had earlier forecast sales of $1.7 billion to $1.8 billion for Q4 which ends Dec. 31, 2011.

"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.

Broadcom's Q3 2011earnings fell 21% from a number of one-time charges.