Broadcom to Acquire LTE-Related Assets from Affiliates of Renesas Electronics Corporation

Broadcom to Acquire LTE-Related Assets from Affiliates of Renesas Electronics

Expected to Accelerate LTE Revenue into Early 2014 with Carrier-Validated,
Production-Ready SoC

Conference Call at 4:30 a.m. PT / 7:30 a.m. ET Today

PR Newswire

IRVINE, Calif., Sept. 4, 2013

IRVINE, Calif., Sept. 4, 2013 /PRNewswire/ -- Broadcom Corporation (NASDAQ:
BRCM), a global innovation leader in semiconductor solutions for wired and
wireless communications, today announced a definitive agreement to acquire
LTE-related assets from affiliates of Renesas Electronics Corporation. The
acquisition is expected to accelerate availability of Broadcom's first
multimode, carrier-validated LTE SoC platform into early 2014. For additional
slide material visit the investor section of Broadcom's website at .

Broadcom is gaining a dual-core LTE SoC that is ready for volume production
and is carrier-validated by leading global operators in North America, Japan
and Europe. Broadcom also receives high-quality multimode, multiband,
LTE-A/HSPA+/EDGE modem IP that includes support for leading-edge features such
as Carrier Aggregation and VoLTE. The acquisition adds quality patents and
applications to Broadcom's IP portfolio and brings some of the world's most
experienced cellular engineers to Broadcom.

"Today's transaction firmly establishes Broadcom's presence in the rapidly
growing LTE market with a production-ready, carrier-validated SoC," said Scott
McGregor, President and CEO of Broadcom. "Our LTE platform will leverage
Broadcom's rich connectivity portfolio and will deliver an optimized feature
set for this fast growing market."

In connection with the acquisition, Broadcom expects to pay approximately $164
million in cash. Excluding any purchase accounting related adjustments and
fair value measurements, Broadcom currently expects this transaction to be
dilutive to earnings per share on a non-GAAP basis by approximately $0.12 in
the three months ending December 31, 2013 and dilutive to non-GAAP earnings
per share by $0.10-$0.15 in full year 2014. However, Broadcom currently
expects the transaction to be roughly neutral to non-GAAP earnings per share
by the second half of 2014 and is expected to be accretive to non-GAAP
earnings per share in 2015. The financial impact of the acquisition is
presented on a non-GAAP basis, as GAAP acquisition-related charges, including,
but not limited to, amortization of purchased intangible assets and potential
restructuring charges, are not estimable at this time. The transaction has
been approved by Broadcom and Renesas Electronics' boards of directors, is
subject to customary closing conditions, and is expected to close early in the
three months ending December 31, 2013.

Updated Business Outlook
Broadcom today also updated its business outlook for the three months ending
September 30, 2013. Broadcom now expects revenue between $2.075 billion and
$2.175 billion; GAAP and non-GAAP product gross margins to be up roughly 50 to
100 basis points; and GAAP and non-GAAP research and development, and selling,
general and administrative expenses to be somewhat above the high-end of the
previously guided range of down ~$5 million to up ~$15 million and flat to up
~$20 million, respectively.

Conference Call Information
Broadcom will host a conference call for analysts and investors today at 4:30
a.m. Pacific Time (7:30 a.m. Eastern Time). Interested parties can call toll
free at (800) 446-2782 US Toll Free or (847) 413-3235 US Toll. The company
will broadcast the conference call via webcast over the Internet and will post
additional slide materials about this acquisition on the company's website. To
listen to the webcast, or to view the slide content, please visit the
Investors section of the Broadcom website at The
webcast will be recorded and available for replay until 10:00 p.m. Pacific
Time on October 4, 2013.

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 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

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 industry and
business, 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, references to the availability of
Broadcom's first multimode carrier-validated LTE SoC platform, the purchase
price, the impact of the acquisition on Broadcom's non-GAAP earnings per
share, the expected date of closing of the transaction, the strategic fit of
Renesas Electronics' technology into Broadcom's business, the potential
benefits of the transaction, guidance provided on future LTE revenue for the
first half of 2014, and guidance provided on the business outlook for the
three months ending September 30, 2013. 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.

Important risk factors that may cause such a difference for Broadcom in
connection with the transaction include, but are not limited to the risks
inherent in acquisitions of technologies and businesses, including the timing
and successful completion of technology and product development through volume
production, integration issues, costs and unanticipated expenditures, changing
relationships with customers, suppliers and strategic partners, potential
contractual, intellectual property or retention or other employment issues,
unanticipated disruption or costs related to services to be provided by
Renesas to Broadcom in connection with the transaction, and charges resulting
from restructuring, purchase accounting adjustments or fair value
measurements; unexpected variations in market growth and demand for LTE
products and related technologies, and matters arising in connection with the
parties' efforts to comply with and satisfy applicable closing conditions
relating to the transaction.

Broadcom's Annual Report on Form 10-K for the year ended December 31, 2012,
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, financial
condition, or the guidance provided today. The forward-looking statements in
this release and the related conference call for analysts and investors speak
only as of this date. We undertake no obligation to revise or update publicly
any forward-looking statement to reflect future events or circumstances.

The forward-looking non-GAAP guidance presented in the Updated Business
Outlook section above is consistent with the presentation of non-GAAP results
as reported in our July 23, 2013 press release covering Broadcom's second
quarter 2013 results. Furthermore, Broadcom is unable to provide a
reconciliation of the impact from the Renesas acquisition to the
forward-looking non-GAAP measures disclosed above to the most comparable
forward-looking GAAP measures because the company cannot at this time reliably
forecast acquisition and other one-time acquisition related transaction costs,
which are difficult to predict and estimate.

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

Press                          Investors
Karen Kahn                     Chris Zegarelli
Vice President, Communications Sr. Director, Investor Relations
415-297-5035                   949-926-7567  

SOURCE Broadcom Corporation; BRCM Corporate

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