Broadcom (BRCM-NASDAQ): Net revenue for the fourth quarter of 2006 was $923.5 million, an increase of 2.3% sequentially and 12.5% year over year. GAAP net income was $45.1M and $0.08 EPS, but non-GAAP was was $184.9 million, or $0.31 EPS. The street was expecting $0.31 EPS and $910M+ in revenues (non-GAAP).
BRCM also announced it would spend $1 Billion in share buybacks. The absolute best news in this is the Non-News. There is absolutely no comment about not being able to show results because of options inquiries on back-dating, hence why I said ‘clean’ earnings. Since there is no guidance, the street is taking the cautious stance until after it is discussed in the conference call.
The company’s cash, cash equivalents and marketable securities at December 31, 2006 totaled a record $2.8 billion. So far shares up marginally up 0.5% at $33.85 in after-hours. Shares closed up 0.5% in normal trading ahead of earnings. The 52-week range is $21.98 to $50.00, so it has seen some real highs and lows.
"The year 2006 exemplified the ever-changing nature of the semiconductor industry, as strength in the first half of the year was followed by a slowdown in the second. However, on the whole, 2006 turned out to be a very good year for Broadcom as we increased our revenue by 37% and increased our cash and marketable securities by more than $900 million," said Scott A. McGregor, Broadcom’s President and CEO.
Jon C. Ogg
February 8, 2007
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