IT 100 Special Report 2006 >

  THE INFOTECH 100 COMPANIES
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87

Broadcom

(NasdaqNM: BRCM)

USA

Broadcom can be excused if it isn't picking winners in the latest fight over whether high-definition movies will be delivered in the Blu-ray or HD-DVD format. The Irvine (Calif.) company makes chips for DVD players that will show them both. In fact, Broadcom has become a $3 billion silicon powerhouse by sidestepping the technological battlegrounds to make chips for just about any communications or media device on the market. It's making chips to power the set-top boxes used by satellite, cable and now telephone companies in their battle for TV subscribers, and for modems used by warring DSL and cable data service providers. A serial acquirer of small technology companies, it scooped up 11 companies over the past three years, paying more than $500 million to push further into Bluetooth chipsets, mobile TV tuners, and low-powered Wi-Fi technology to grab an even bigger chunk of the fast-growing wireless market. Today, its fastest-growing unit makes chips for wireless routers, camera-clicking cell phones, and other wireless devices. Its newfound power in the wireless business hasn't come without struggle: It's currently embroiled in a three legal fights, including one before the European Commission in which it accused cell-phone chip giant Qualcom of patent infringement and anti-competitive practices. That's one fight in which Broadcom intends to take sides.

Company Info

2005 Rank

Not Ranked

Sales*
($ Millions)

3,021.1

Sales Growth
(over prev. year)

27 %

Profits*
($ Millions)

477.4

Return on Equity

13.0 %

Total Return on Sales (12-mo.)

42.7

Share Price
As of 5/31/06

33.79

CURRENT
MARKET INFO

NasdaqNM: BRCM

No. of Employees

4,287

Industry Semiconductors
COMPANY WEB SITE >
*Trailing 12 months
Stock price data as of 5/31/06
DATA: Standard & Poor's Compustat

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Company Snapshot

Broadcom provides semiconductors for wired and wireless communications. Its products enable the delivery of voice, video, data, and multimedia to and throughout the home, office, and mobile environment. The company provides portfolio of system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. It offers solutions for digital cable, satellite, and Internet protocol set-top boxes; high definition television; cable and digital subscriber line modems, and residential gateways; high definition DVD players and personal video recording devices; wireless and personal area networking; transmission and switching for local, metropolitan, wide area, and storage networking; home and wireless networking; cellular and terrestrial wireless communications; voice over Internet protocol gateway and telephony systems; broadband network and security processors; and system I/O server solutions. The company markets and sells its products in the U.S. through a direct salesforce, distributors, and manufacturers representatives, as well as through regional offices internationally. Broadcom was co-founded by Henry T. Nicholas III and Henry Samueli in 1991. The company is headquartered in Irvine, Calif.


Data provided by Capital IQ
 
Scott A. McGregor

Scott A. McGregor, 49

President and Chief Executive Officer

Total Compensation

$7,689,957

Value of Options

$30,360,000

Stanford University - BA, Stanford University - MS

Scott McGregor has been president and chief executive officer of Broadcom since January, 2005. McGregor previously served as senior vice-president of Koninklijke Philips Electronics and president and CEO of the semiconductors division. McGregor joined Philips Semiconductors in 1998 with responsibility for the newly created emerging businesses unit. McGregor served as executive vice-president, communications businesses, of Philips Semiconductors. Prior to joining Philips, he held senior management positions at the Xerox Palo Alto Research Center, Microsoft, Digital Equipment, and SCO. From 1998 to 2001, he served as senior vice-president and general manager of Philips Electronics, North America. McGregor has been a director of Broadcom since January, 2005. He has been a director of Progress Software since March, 1998. McGregor has served as a member of the group management committee of Koninklijke Philips Electronics since January, 2002. He has served as a director of Taiwan Semiconductor Manufacturing since September, 2003. He holds a bachelor's degree in psychology and a master's degree in computer science and computer engineering from Stanford University.



Executive Data provided by Capital IQ