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Broadcom Announces 12.5 Percent Increase in Quarterly Cash Dividend and $300 Million Accelerated Share Repurchase Plan
Feb 01, 2011 (03:02 PM EST)
Continues Strategy to Return Meaningful Capital to Shareholders
IRVINE, Calif., Feb. 1, 2011 /PRNewswire/ -- Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today announced that its Board of Directors has approved a 12.5 percent increase in the quarterly cash dividend to $0.09 cents per share ($0.36 per share on an annual basis) payable to holders of the Company's Class A and Class B common stock. The Company also announced a $300 million accelerated share repurchase plan under its existing evergreen share repurchase program. These developments build on the company's strategy to return meaningful capital to shareholders.
The $0.09 dividend was declared by the Board of Directors on January 31, 2011 and will be paid on March 7, 2011 to holders of record of the Company's Class A and Class B common stock at the close of business on February 18, 2011. The $0.09 dividend will be paid from U.S. domestic sources other than the Company's retained earnings and will be treated for accounting purposes as a reduction of shareholders' equity.
"Broadcom's strong growth and powerful operating cash flow drive our ability to increase the return of capital to our investors while fueling our business organically and through M&A," said Scott A. McGregor, Broadcom's President and Chief Executive Officer. "A higher dividend, accelerated share repurchases and our evergreen share repurchase program reflect our continued commitment to returning capital to our shareholders."
The cash dividend policy and payment of future cash dividends under that policy are subject to the Board's continuing determination that the dividend policy and the declaration of dividends are in the best interests of Broadcom's shareholders and are in compliance with all the laws and agreements of Broadcom applicable to the declaration and payment of cash dividends.
Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom® products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. We provide the industry's broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support our core mission: Connecting everything®.
Broadcom, one of the world's largest fabless communications semiconductor companies, with 2010 revenue of $6.82 billion, holds more than 4,800 U.S. and 2,000 foreign patents, and has more than 7,800 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video, data and multimedia.
A FORTUNE 500® company, Broadcom is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at +1.949.926.5000 or at www.broadcom.com.
Cautions regarding Forward-Looking Statements:
All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward-looking statements. 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, our intention to pay quarterly cash dividends, repurchase shares and return capital to shareholders. These forward-looking statements are not guarantees of future results or events 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.
Important factors that may cause such a difference for Broadcom in connection with our dividend policy and share repurchases, include, but are not limited to:
Additional factors that may cause Broadcom's actual results to differ materially from those expressed in this press release include, but are not limited to the list that can be found at the list that can be found at http://www.broadcom.com/press/additional_risk_factors/Q42010.php.
Our Annual Report on Form 10-K, 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 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, except as required by law.
Broadcom®, the pulse logo, Connecting everything®, 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.
SOURCE Broadcom Corporation; BRCM Corporate