Date: 30/01/2009

Broadcom 4th Q 08 revenue results; not so bad, but layoffs planned

Wireless semiconductor leader Broadcom's net revenue for the fourth quarter of 2008 was $1.127 billion, a decrease of 13.2% compared with the $1.298 billion reported for the third quarter of 2008 and an increase of 9.7% compared with the $1.027 billion reported for the fourth quarter of 2007.

Net revenue for the year ended December 31, 2008 was $4.658 billion, an increase of 23.3% from the $3.776 billion reported for the year ended December 31, 2007.

"Despite the dramatic impact that the economic downturn had on the semiconductor industry as a whole in 2008 and on our business in the fourth quarter, Broadcom achieved record revenue levels in 2008 increasing annual net revenue by approximately $900 million and generated approximately $920 million of cash flow from operations during the year," said Scott A. McGregor, Broadcom's President and Chief Executive Officer. "As we look into the first quarter of 2009, we believe the current economic slowdown will continue to negatively impact our business as demand continues to decrease and settle into new levels and channel inventory adjusts accordingly. As we noted at our Analyst Day in December, Broadcom's key goals for 2009 are to manage costs and focus on operating cash flow, while at the same time leveraging our research and investments to gain market share to ensure that we will emerge in a much stronger position once the economy recovers. Consistent with those goals, we have been reducing controllable ongoing expenses since the third quarter of 2008 and are implementing further cost saving measures this quarter, including a delay in salary increases, a reduction in our workforce and a variety of other belt tightening actions on discretionary spending."