These risks and uncertainties include, but are not limited to the following:
- 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's quarterly operating results may fluctuate significantly.
- Broadcom depends on a few significant customers for a substantial portion of its revenue.
- Broadcom's stock price is highly volatile.
- Broadcom may fail to appropriately adjust its operations in response to changes in its strategy or market demand.
- Broadcom faces intense competition.
- Broadcom may be unable to attract, retain or motivate key personnel.
- Broadcom's operating results may be adversely impacted by worldwide economic uncertainties and specific conditions in the markets it addresses.
- 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 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.
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 Income |
|||||||||||||||||||
(In millions, except per share amounts) |
|||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||
September 30, |
June 30, |
September 30, |
September 30, |
||||||||||||||||
2015 |
2015 |
2014 |
2015 |
2014 |
|||||||||||||||
Net revenue |
$ |
2,187 |
$ |
2,096 |
$ |
2,260 |
$ |
6,341 |
$ |
6,285 |
|||||||||
Cost of revenue |
1,015 |
939 |
1,077 |
2,926 |
3,086 |
||||||||||||||
Gross profit |
1,172 |
1,157 |
1,183 |
3,415 |
3,199 |
||||||||||||||
Operating expenses: |
|||||||||||||||||||
Research and development |
542 |
538 |
573 |
1,619 |
1,843 |
||||||||||||||
Selling, general and administrative |
177 |
188 |
176 |
542 |
543 |
||||||||||||||
Amortization of purchased intangible assets |
1 |
2 |
8 |
4 |
26 |
||||||||||||||
Impairments of long-lived assets |
— |
— |
200 |
143 |
390 |
||||||||||||||
Restructuring costs, net |
4 |
4 |
114 |
15 |
142 |
||||||||||||||
Settlement costs |
4 |
1 |
2 |
5 |
20 |
||||||||||||||
Other charges (gains), net |
8 |
22 |
(1) |
26 |
(60) |
||||||||||||||
Total operating expenses |
736 |
755 |
1,072 |
2,354 |
2,904 |
||||||||||||||
Income from operations |
436 |
402 |
111 |
1,061 |
295 |
||||||||||||||
Interest expense, net |
(1) |
(3) |
(17) |
(9) |
(27) |
||||||||||||||
Other income (expense), net |
6 |
(5) |
9 |
1 |
4 |
||||||||||||||
Income before income taxes |
441 |
394 |
103 |
1,053 |
272 |
||||||||||||||
Provision for income taxes |
12 |
8 |
5 |
29 |
10 |
||||||||||||||
Net income |
$ |
429 |
$ |
386 |
$ |
98 |
$ |
1,024 |
$ |
262 |
|||||||||
Net income per share (basic) |
$ |
0.71 |
$ |
0.64 |
$ |
0.17 |
$ |
1.70 |
$ |
0.45 |
|||||||||
Net income per share (diluted) |
$ |
0.69 |
$ |
0.63 |
$ |
0.16 |
$ |
1.66 |
$ |
0.44 |
|||||||||
Weighted average shares (basic) |
608 |
602 |
591 |
603 |
587 |
||||||||||||||
Weighted average shares (diluted) |
620 |
616 |
607 |
616 |
598 |
||||||||||||||
Dividends per share |
$ |
0.14 |
$ |
0.14 |
$ |
0.12 |
$ |
0.42 |
$ |
0.36 |