Following a trend among other equipment vendors, Broadcom Corp. saw its
cable-products business dip in the fourth quarter of 2002.
For the quarter, Broadcom posted net revenue of $295.9 million, up 30.5
percent compared with the same quarter in 2001.
A series of hefty $1.2 billion noncash goodwill write-offs ballooned the
company's net loss to $1.75 billion, but excluding that change, the pro forma
loss narrowed to $6.6 million, down from $28.8 million in the fourth quarter of
On the down side, Broadcom saw a drop in its cable- and server-product
businesses to less than 25 percent of total revenues as product backlogs
increased in the fourth quarter.
That was offset by strong growth in the vendor's
enterprise-networking-product lines, particularly switching and gigabit-Ethernet
Going into the first quarter, Broadcom expects modest improvement in its
The chip-making giant also announced the resignation of its president and
CEO, Henry Nicholas III. During the earnings conference call, Nicholas said his
resignation was prompted by changes in his home life.
"This has been a difficult personal decision for me, and one which has been
driven entirely by personal issues related to my family separation and divorce,"
Nicholas will serve out his term as co-chairman of the company board, which
ends in May, but he will not seek re-election.
Chief operating officer Alan E. "Lanny" Ross will take over as interim CEO
while the company searches for a permanent replacement.
Broadcom shares dropped more than 14 percent Friday on tne news, closing at $15.11 apiece.