Broadcom 8-K Broadcom Reports Second Quarter 2011 Results

Exhibit 99.1

NEWS RELEASE

Broadcom Business Press Contact	Broadcom Investor Relations Contact
Karen Kahn	Chris Zegarelli
Vice President, Corporate Communications	Director, Investor Relations
949-926-3139	aaaa 949-926-7567
kkahn@broadcom.com	czegarel@broadcom.com

Broadcom Reports Second Quarter 2011 Results

Net Revenue $1.8 billion — Up 12% Year over Year
GAAP Diluted EPS $.31; Non-GAAP Diluted EPS $.72

Q2 GAAP Results

• Total Revenue:$1.8 billion (up 12% year over year)

• Product Gross Margin:49.6%

• Diluted EPS:$0.31 (includes $0.14 of net non-recurring charges)

• Cash Flow from Operations:$489 million

Q2 Non-GAAP Results

• Product Gross Margin:51.1%

• Diluted EPS:$0.72

IRVINE, Calif. — July 25, 2011— Broadcom Corporation (Nasdaq: BRCM) today reported unaudited financial results for its second quarter ended June 30, 2011.

“Broadcom delivered solid profitability in Q2 within our non-GAAP target model, with better-than-expected gross margins and record cash flow from operations,” said Scott A. McGregor, Broadcom’s President and Chief Executive Officer. “Looking forward, we see strong demand for our communications solutions, reinforcing that innovation is driving customer demand. We expect solid growth in revenue and profitability in Q3.”

Net revenue for the second quarter of 2011 was $1.8 billion. This represents an increase of 12% compared with the $1.6 billion reported for the second quarter of 2010. Net income computed in accordance with U.S. generally accepted accounting principles (GAAP) for the second quarter of 2011 was $175 million, or $.31 per share (diluted),

-more-

Broadcom Reports Second Quarter 2011 Results
Page 2

compared with GAAP net income of $278 million, or $.52 per share (diluted), for the second quarter of 2010.

In addition to GAAP results, Broadcom reports adjusted net income and adjusted net income per share, referred to respectively as “non-GAAP net income” and “non-GAAP diluted net income per share.” A discussion of Broadcom’s use of these and other non-GAAP financial measures is set forth below. Reconciliations of GAAP to non-GAAP financial measures for the three and six months ended June 30, 2011 and 2010, respectively, appear in the financial statements portion of this release under the heading “Unaudited Schedule of Selected GAAP to Non-GAAP Adjustments”.

Non-GAAP net income for the second quarter of 2011 was $418 million, or $.72 per share (diluted), compared with non-GAAP net income of $418 million, or $.74 per share (diluted), for the second quarter of 2010.

Conference Call Information

As previously announced, Broadcom will conduct a conference call with analysts and investors to discuss its second quarter financial results and current financial prospects today at 1:30 p.m. Pacific Time (4:30 p.m. Eastern Time). The company will broadcast the conference call via webcast over the Internet. To listen to the webcast, or to view the financial and other statistical information required by Securities and Exchange Commission Regulation G, please visit the Investors section of the Broadcom website at www.broadcom.com/investors. The webcast will be recorded and available for replay until 10:00 p.m. Pacific Time on Monday, August 15, 2011.

The financial results included in this release are unaudited.

About Broadcom

Broadcom Corporation (NASDAQ: BRCM), a FORTUNE 500^® company, is a global leader and innovator in semiconductor solutions for wired and wireless communications. Broadcom^® products seamlessly deliver voice, video, data and multimedia connectivity

-more-

Broadcom Reports Second Quarter 2011 Results
Page 3

in the home, office and mobile environments. With the industry’s broadest portfolio of state-of-the-art system-on-a-chip and embedded software solutions, Broadcom is changing the world by Connecting everything^®. For more information, go to www.broadcom.com.

Note Regarding Use of Non-GAAP Financial Measures

Broadcom reports the following measures in accordance with GAAP and on a non-GAAP basis: (i) cost of product revenue, (ii) product gross profit, (iii) product gross margin, (iv) net income and (v) diluted net income per share. Broadcom’s presentation of non-GAAP cost of product revenue, non-GAAP product gross profit, and non-GAAP product gross margin excludes certain charges related to acquisitions, stock-based compensation expense and employer payroll tax expense on certain stock option exercises. In addition to the exclusions noted above, our non-GAAP net income and diluted net income per share (EPS) also exclude settlement costs, charitable contributions, non-recurring legal fees and impairment of long-lived assets. Stock-based compensation expense primarily includes the impact of stock options and restricted stock units issued by Broadcom. Reconciliations of our GAAP to non-GAAP financial measures for the three and six months ended June 30, 2011 and 2010 appear in the financial statements portion of this release under the heading “Unaudited Schedule of Selected GAAP to Non-GAAP Adjustments.”

Broadcom believes that the presentation of these non-GAAP measures provides important supplemental information to management and investors regarding financial and business trends relating to our financial condition and results of operations. Broadcom’s management believes that the use of these non-GAAP financial measures provides consistency and comparability among and between results from prior periods or forecasts and future prospects, and also facilitates comparisons with other companies in our industry, many of which use similar non-GAAP financial measures to supplement their GAAP results. Broadcom’s management has historically used these non-GAAP financial measures when evaluating operating performance, because we believe that the inclusion or exclusion of the items described above provides insight into our core operating results,

-more-

Broadcom Reports Second Quarter 2011 Results
Page 4

our ability to generate cash and underlying business trends affecting our performance. Broadcom has chosen to provide this information to investors to enable them to perform additional analyses of past, present and future operating performance and as a supplemental means to evaluate our ongoing core operations. The non-GAAP financial information presented herein should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP.

For additional information on the items excluded by Broadcom from one or more of its non-GAAP financial measures, refer to the Form 8-K regarding this release furnished today to the Securities and Exchange Commission.

Cautions Regarding Forward-Looking Statements:

All statements included or incorporated by reference in this release and the related conference call for analysts and investors, other than statements or characterizations of historical fact, are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on our current expectations, estimates and projections about our business and industry, management’s beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “could,” “potential,” “continue,” “ongoing,” similar expressions, and variations or negatives of these words. Examples of such forward-looking statements include, but are not limited to, guidance provided on future revenue, gross product margin and operating expense targets for the third quarter of 2011, and references to demand for our communications solutions. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

These risks and uncertainties include, but are not limited to the following:

• We face intense competition.

• We depend on a few significant customers for a substantial portion of our revenue.

• Our quarterly operating results may fluctuate significantly.

• We face risks associated with our acquisition strategy.

• We may fail to adjust our operations in response to changes in demand.

• Our operating results may be adversely impacted by worldwide economic uncertainties and specific conditions in the markets we address.

-more-

Broadcom Reports Second Quarter 2011 Results
Page 5

• Our stock price is highly volatile.

• We may be required to defend against alleged infringement of intellectual property rights of others and/or may be unable to adequately protect or enforce our own intellectual property rights.

• Our business is subject to potential tax liabilities.

• We are subject to order and shipment uncertainties.

• We manufacture and sell complex products and may be unable to successfully develop and introduce new products.

• We are exposed to risks associated with our international operations.

• We depend on third parties to fabricate, assemble and test our products.

• We may be unable to attract, retain or motivate key personnel.

• Government regulation may adversely affect our business.

• There can be no assurance that we will continue to declare cash dividends.

• Our articles of incorporation and bylaws contain anti-takeover provisions.

• Our co-founders and their affiliates may control the outcome of matters that require the approval of our shareholders.

Our Annual Report on Form 10-K for the year ended December 31, 2010, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements used in this release and the related conference call for analysts and investors speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement to reflect future events or circumstances.

BroadcomÒ, the pulse logo, Connecting everythingÒ, 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.

-more-

Broadcom Reports Second Quarter 2011 Results
Page 6

BROADCOM CORPORATION
Unaudited GAAP Condensed Consolidated Statements of Income
(In millions, except per share amounts)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Net revenue:
Product revenue	$	1,742		$	1,547		$	3,494		$	2,951
Income from Qualcomm Agreement		51			51			103			103
Licensing revenue		3			7			15			13
Total net revenue		1,796			1,605			3,612			3,067
Costs and expenses:
Cost of product revenue		877			762			1,772			1,457
Research and development		504			421			1,002			842
Selling, general and administrative		183			144			361			277
Amortization of purchased intangible assets		8			5			15			8
Impairments of long-lived assets		74			—			83			—
Settlement costs (gains), net		(45	)		1			(50	)		4
Charitable contribution		25			—			25			—
Total operating costs and expenses		1,626			1,333			3,208			2,588
Income from operations		170			272			404			479
Interest income, net		—			2			—			5
Other income, net		2			2			—			5
Income before income taxes		172			276			404			489
Provision (benefit) for income taxes		(3	)		(2	)		1			1
Net income	$	175		$	278		$	403		$	488
Net income per share (basic)	$	0.33		$	0.56		$	0.75		$	0.98
Net income per share (diluted)	$	0.31		$	0.52		$	0.71		$	0.92
Weighted average shares (basic)		535			501			537			498
Weighted average shares (diluted)		558			538			567			533
Dividends per share	$	0.09		$	0.08		$	0.18		$	0.16

     The following table presents details of total stock-based compensation expenseincludedin each functional line item in the unaudited condensed consolidated statements of income above:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Cost of product revenue	$	6	$	5	$	13	$	12
Research and development		97		84		199		173
Selling, general and administrative		33		30		69		61

-more-

Broadcom Reports Second Quarter 2011 Results
Page 7

BROADCOM CORPORATION
Unaudited Condensed Consolidated Statements of Cash Flows
(In millions)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Operating activities
Net income	$	175		$	278		$	403		$	488
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		28			18			51			38
Stock-based compensation expense:
Stock options and other awards		34			29			74			64
Restricted stock units		102			90			207			182
Acquisition-related items:
Amortization of purchased intangible assets		22			14			44			24
Impairment of long-lived assets		74			—			83			—
Non-cash settlement gain		(14	)		—			(14	)		—
Changes in operating assets and liabilities:
Accounts receivable		93			(81	)		152			(175	)
Inventory		34			(86	)		82			(120	)
Prepaid expenses and other assets		(4	)		10			(32	)		23
Accounts payable		(71	)		58			(141	)		102
Deferred revenue and income		(10	)		(9	)		(19	)		(19	)
Accrued settlement costs		3			(162	)		3			(163	)
Other accrued and long-term liabilities		23			37			(71	)		20
Net cash provided by operating activities		489			196			822			464
Investing activities
Net purchases of property and equipment		(52	)		(29	)		(97	)		(47	)
Net cash paid for acquired companies		(344	)		—			(344	)		(102	)
Purchases of strategic investments		—			(3	)		—			(8	)
Purchases of marketable securities		(770	)		(418	)		(1,424	)		(483	)
Proceeds from sales and maturities of marketable securities		1,065			181			1,860			370
Net cash used in investing activities		(101	)		(269	)		(5	)		(270	)
Financing activities
Repurchases of Class A common stock		(249	)		(121	)		(670	)		(275	)
Dividends paid		(49	)		(40	)		(97	)		(80	)
Payment of assumed debt		—			—			—			(15	)
Proceeds from issuance of common stock		104			164			216			246
Minimum tax withholding paid on behalf of employees for restricted stock units		(34	)		(34	)		(91	)		(63	)
Net cash used in financing activities		(228	)		(31	)		(642	)		(187	)
Increase (decrease) in cash and cash equivalents		160			(104	)		175			7
Cash and cash equivalents at beginning of period		1,637			1,508			1,622			1,397
Cash and cash equivalents at end of period	$	1,797		$	1,404		$	1,797		$	1,404

UNAUDITED SUPPLEMENTAL FINANCIAL INFORMATION

	June 30,			December 31,
	2011			2010
	(In millions)
Cash and cash equivalents	$	1,797		$	1,622
Short-term marketable securities		829			1,035
Long-term marketable securities		1,174			1,401
Total cash, cash equivalents and marketable securities	$	3,800		$	4,058
Decrease from prior year end	$	(258	)

-more-

Broadcom Reports Second Quarter 2011 Results
Page 8

BROADCOM CORPORATION
Unaudited Condensed Consolidated Balance Sheets
(In millions)

	June 30,		December 31,
	2011		2010
ASSETS
Current assets:
Cash and cash equivalents	$	1,797	$	1,622
Short-term marketable securities		829		1,035
Accounts receivable, net		680		820
Inventory		546		598
Prepaid expenses and other current assets		125		109
Total current assets		3,977		4,184
Property and equipment, net		319		266
Long-term marketable securities		1,174		1,401
Goodwill		1,820		1,677
Purchased intangible assets, net		488		366
Other assets		57		50
Total assets	$	7,835	$	7,944
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	471	$	604
Wages and related benefits		129		208
Deferred revenue and income		37		55
Accrued liabilities		417		404
Total current liabilities		1,054		1,271
Long-term debt		697		697
Other long-term liabilities		207		150
Commitments and contingencies
Shareholders’ equity		5,877		5,826
Total liabilities and shareholders’ equity	$	7,835	$	7,944

-more-

Broadcom Reports Second Quarter 2011 Results
Page 9

BROADCOM CORPORATION
Unaudited Schedule of Selected GAAP to Non-GAAP Adjustments
(In millions)

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Product revenue	$	1,742		$	1,547		$	3,494		$	2,951
GAAP cost of product revenue		877			762			1,772			1,457
GAAP product gross profit	$	865		$	785		$	1,722		$	1,494
GAAP product gross margin		49.6	%		50.8	%		49.3	%		50.6	%
Cost of product revenue:
GAAP cost of product revenue	$	877		$	762		$	1,772		$	1,457
Stock-based compensation & related payroll taxes		(6	)		(5	)		(13	)		(12	)
Amortization of purchased intangible assets & acquired inventory		(19	)		(12	)		(39	)		(23	)
Non-GAAP cost of product revenue	$	852		$	745		$	1,720		$	1,422
Product revenue	$	1,742		$	1,547		$	3,494		$	2,951
Non-GAAP cost of product revenue		852			745			1,720			1,422
Non-GAAP product gross profit	$	890		$	802		$	1,774		$	1,529
Non-GAAP product gross margin		51.1	%		51.8	%		50.8	%		51.8	%

	Three Months Ended					Six Months Ended
	June 30,					June 30,
	2011			2010		2011			2010
GAAP net income	$	175		$	278	$	403		$	488
Adjustments:
Stock-based compensation and related payroll taxes		137			122		285			250
Amortization of purchased intangible assets & acquired inventory		27			17		54			31
Impairment of long-lived assets		74			—		83			—
Settlement costs (gains), net		(45	)		1		(50	)		4
Charitable contributions		25			—		25			—
Non-recurring legal fees		25			—		25			—
Total GAAP to Non-GAAP adjustments		243			140		422			285
Non-GAAP net income	$	418		$	418	$	825		$	773
Shares used in calculation — diluted (GAAP)		558			538		567			533
Non-GAAP adjustment		26			27		24			27
Shares used in calculation — diluted (Non-GAAP)*		584			565		591			560
GAAP diluted net income per share	$	0.31		$	0.52	$	0.71		$	0.92
Non-GAAP diluted net income per share	$	0.72		$	0.74	$	1.40		$	1.38

* Represents the benefits of compensation costs attributable to future services and not yet recognized in the financial statements that are treated as proceeds assumed to be used to repurchase shares under the GAAP treasury stock method.

-more-

Broadcom Reports Second Quarter 2011 Results
Page 10

BROADCOM CORPORATION
Guidance for the Three Months Ending September 30, 2011

	Three Months Ending
	September 30, 2011
Total Net Revenue (in billions)	$1.9 — $2 billion
Product Gross Margin (GAAP)	Flat to up slightly
Research & development and selling, general, and administrative expenses (GAAP)	Flat to down $10 million from Q2’11 GAAP results

Broadcom has based the preceding guidance for the three months ending September 30, 2011 on expectations, assumptions and estimates that we believe are reasonable given our assessment of historical trends and other information reasonably available as of July 25, 2011. Our guidance consists of predictions only, however, and is subject to a wide range of known and unknown business risks and uncertainties, many of which are beyond our control. The forecasts and projections contained in the table above should not be regarded as representations by Broadcom that the estimated results will be achieved. Projections and estimates are necessarily speculative in nature and actual results may vary materially from the guidance we provide today.

The guidance set forth in the above table should be read together with the information under the caption, “Cautions regarding Forward-Looking Statements” above, our Annual Report on Form 10-K for the year ended December 31, 2010, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and our other Securities and Exchange Commission filings. We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances.

-XXX-