Pro forma net loss for the second quarter of 2001 was $41.1 million, or $.16 per share (basic and diluted). This compares with pro forma net income of $61.1 million, or $.24 per share (diluted), for the same quarter in 2000. Loss per share for the quarter was based on 252.4 million weighted average shares outstanding (basic and diluted), compared to 253.9 million weighted average shares outstanding (diluted) in the second quarter of 2000.
Broadcom reports net income (loss) and diluted earnings (loss) per share on a pro forma basis, which excludes the effects of acquisition-related expenses, payroll taxes on certain stock option exercises, certain non-recurring charges and related income tax effects. Including these charges, substantially all of which were non-cash, net loss for the second quarter of 2001 was $436.4 million, or $1.73 per share (basic and diluted), compared with net income of $55.9 million, or $.22 per share (diluted), in the same quarter of 2000. Restructuring charges incurred during the quarter (and included in the pro forma adjustment) were $18.2 million, of which approximately $10 million represented non-cash charges.
For the six months ended June 30, 2001, net revenue was $521.4 million, an increase of 19% over the $436.8 million reported for the six months ended June 30, 2000. Pro forma net loss for the six months ended June 30, 2001 was $23.0 million, compared to pro forma net income of $106.0 million reported for the first six months of 2000. Pro forma loss per share was $.09 (basic and diluted), based on 251.0 million weighted shares outstanding, versus pro forma earnings of $.42 per share (diluted) on 253.3 million weighted average shares outstanding in 2000. Including the charges excluded in pro forma reporting, net loss for the six months ended June 30, 2001 was $793.2 million, or $3.16 per share (basic and diluted).
During the quarter, we conducted extensive reviews of all of our lines of business. As a result we have consolidated many programs, particularly on the subscriber side of our business. This will allow us to more efficiently address customer requirements in our cable, phoneline and wireless lines of business, said Dr Henry T. Nicholas III, Broadcom’s president and CEO in a conference call. We have been able to remove redundancies throughout the company, in both engineering and non-engineering areas, resulting in the elimination of over 200 positions. We have also identified products and markets in which we want to increase our level of investment both with new hires and with people eliminated from lower priority programs.
Our second quarter results met the revised expectations that we communicated on June 6th. As we indicated then, we are continuing to see signs that business is stabilizing for the second half of the year, Nicholas continued. Having a diversified portfolio of products within the broadband communications sector should position us well as these markets begin to improve. The ability to continue to serve our existing markets as well as to introduce new products into emerging markets will be paramount to the re-acceleration of our growth.
