Revenue for the fourth quarter was a record $376.1 million, an increase of 132% over the $162.0 million reported in the fourth quarter of 1999 and an increase of 18% over the $319.2 million reported in the third quarter of 2000. Pro forma net income was a record $86.7 million, or $.32 per share (diluted).
This compares with pro forma net income of $32.0 million, or $.13 per share (diluted), for the same quarter in 1999, and pro forma net income of $78.7 million, or $.30 per share (diluted), in the third quarter of 2000. Diluted earnings per share for the quarter were based on 274.1 million weighted average shares outstanding, compared to 245.2 million weighted average shares outstanding in the fourth quarter of 1999 and to 264.8 million weighted average shares outstanding in the third quarter of 2000.
Broadcom reports net income and diluted earnings per share on a pro forma basis, which excludes the effects of acquisition-related expenses and payroll taxes on certain stock option exercises. Including these charges, substantially all of which were non-cash, net loss for the fourth quarter was $768.6 million, or $3.28 per share, compared with net income of $33.0 million, or $.13 per share (diluted), in the same quarter in 1999, and with a net loss of $19.4 million, or $.09 per share, in the third quarter of 2000.
For the full year 2000, revenue was a record $1.1 billion, an increase of 117% over the $521.2 million reported for 1999. Pro forma net income for 2000 was a record $271.4 million, an increase of 172% over the $99.8 million for 1999. Pro forma diluted earnings per share were $1.04, based on 261.4 million weighted average shares outstanding, versus $.42 per share on 235.7 million weighted average shares in 1999. Including the charges excluded in pro forma reporting, net loss for the year 2000 was $693.4 million, or $3.15 per share.
During the fourth quarter, Broadcom announced four significant acquisitions – Element 14, Inc. (DSL products), Allayer Communications (10 Gigabit per second switching products), VisionTech, Ltd. (MPEG-2 compression products) and SiByte, Inc. (network processor products). All four transactions have been completed. Additionally, two other key acquisitions announced during the third quarter – NewPort Communications, Inc. (optical networking products) and Silicon Spice Inc. (carrier access products) – closed in the fourth quarter. All of these acquisitions were accounted for under the purchase method of accounting.
Our fourth quarter and full year financial results demonstrated the strength of our traditional product lines as well as the solid growth we are experiencing in new and emerging markets, many of which we are responsible for creating, said Dr Henry T. Nicholas III, Broadcom’s president and CEO.
