Broadcom Reports Loss for First-Quarter

Broadcom Corp. has reported a drop in first-quarter revenues of 17.3% to reach $853.4 million, compared with the $1.032 billion reported for the first quarter of 2008. The net loss for the first quarter of 2009 was $91.9 million, compared with an income of $74.3 million, for the first quarter of 2008.

Net revenue for the first quarter ended March 31, 2009 included royalties of $19 million received pursuant to a patent license agreement entered into in July 2007. The royalties received in the first and fourth quarters of 2008 were $35.6 million and $40 million, respectively.

"While we were not able to completely offset the impact of the current economic downturn with our product, customer and end market breadth, we believe Broadcom was successful in experiencing a lesser peak-to-trough revenue decline than many of our peers," said Scott A. McGregor, Broadcom's President and Chief Executive Officer. "Even in the midst of this revenue decline, Broadcom demonstrated strong operating expense control and generated solid cash flow from operations, enabling us to continue to invest in next generation products to stay ahead of our competition."

"As we progressed through the first quarter, customer bookings strengthened, which is reflected in our anticipated sequential revenue growth in the second quarter of 2009."

Posted to the site on 21st April 2009