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IRVINE, Calif., Oct 19, 2004 /PRNewswire-FirstCall via Comtex/ -- Broadcom Corporation (Nasdaq: BRCM), a leading provider of highly integrated semiconductor solutions enabling broadband communications, today announced that it has captured the number one worldwide market share position in shipments of Gigabit Ethernet (GbE) controllers according to two leading independent research firms IDC and Dell'Oro. Broadcom was able to attain this position by continuing to be first to market with next generation features in its NetXtreme™ controller family, as well as providing leading OEMs with a roadmap of future functionality such as Broadcom's recently announced Converged Network Interface Controller (C-NIC), which integrates four separate network functions over a single Ethernet fabric.
According to IDC, Broadcom attained the number one market share position by capturing a 47% share of the NIC/LOM (Network Interface Card/LAN-On- Motherboard) controller market, surpassing Intel's NIC/LOM controller port shipments for the period beginning January 1, 2004 and ending June 30, 2004. This information will be available in an upcoming IDC report entitled, "Worldwide Ethernet Semiconductor Market Update" scheduled to be published in November 2004.
According to Dell'Oro Group, Broadcom LOM unit shipments increased 6% from the first quarter of 2004 to the second quarter, while Intel's LOM shipments decreased 4% over this same time frame. As outlined in Dell'Oro's "Q2 2004 Quarterly Ethernet Switch" report published in August 2004, Broadcom surpassed Intel achieving 50% of the total Gigabit Ethernet controller shipment market in the second quarter of 2004 compared to Intel's 44% share. Broadcom not only surpassed the leading competitor, but also gained share from the other competitors as well.
"We're extremely pleased about the tremendous success we've had with the NetXtreme family of GbE controllers over the past several years," said Greg Young, Senior Director and General Manager of Broadcom's High-Speed Controller Line of Business. "Going forward, we are even more enthusiastic about our outlook for both our NetXtreme and the revolutionary NetXtreme II product families. Not only are we seeing fantastic growth with the NetXtreme controller family as we continue to gain share, but we are also very well positioned to redefine Ethernet communications as we know it today based on our NetXtreme II family of converged network controller solutions."
This significant milestone demonstrates the widespread adoption of Broadcom® NetXtreme GbE controllers within the enterprise and throughout the business PC market. Based upon seven generations of field-proven reliability, the NetXtreme family continues to be the controller of choice in business desktops, notebooks, workstations and servers from all leading Tier 1 OEM PC manufacturers. Broadcom's NetXtreme GbE controllers are featured as the standard integrated LOM connection for products from Dell, HP, IBM, Fujitsu- Siemens, NEC, Fujitsu, Acer and many others. As a pioneer of Gigabit Ethernet-over-copper integrated circuit technology, Broadcom has led the industry migration from legacy 10/100 Fast Ethernet (FE) to Gigabit Ethernet in PCs and servers and continues to strategically invest in leading edge Ethernet technology, affording Broadcom's continued market leading success through first-to-market features, software consistency, and world-class reliability and stability.
As reported by IDC, Broadcom achieved its market share leadership based on its success in securing Gigabit Ethernet NIC/LOM designs with Tier 1 OEMs. By continuing to strategically invest in NetXtreme technology and working closely with Tier 1 partners, Broadcom has achieved a number of industry firsts with its NetXtreme technology, including being the first to manufacture a single- chip integrated GbE controller, the first to support the PCI-X™ and PCI Express™ industry standard bus interfaces, the first to utilize 0.13-micron process technology for Ethernet controllers, and the first to deliver the revolutionary Converged-NIC solution that performs four separate network functions over a single Ethernet fabric.
"Broadcom achieved healthy growth as its NetXtreme GbE product line ramped up into corporate desktops and notebooks," said Sean Lavey, Semiconductor Program Manager for IDC. "For the first half of 2004, Broadcom shipped 12.5 million NIC/LOM ports to place first in the rankings."
The latest members of the NetXtreme controller family represent the world's first GbE controllers to implement the advanced PCI Express host interface. As enterprise servers and clients migrate to increasingly faster Ethernet speeds, PCI Express allows the LAN connection architecture to scale in parallel with end users' throughput requirements. The Broadcom BCM5721 (for high-performance servers), BCM5751 (for desktop and workstation PCs) and BCM5751M (for mobile PCs) are designed specifically to address the needs of these high performance computing platforms.
Broadcom recently introduced its family of next generation Ethernet controllers called Converged-NICs (or C-NICs). A C-NIC combines the functions of four separate networks into one dynamic, multi-functional network. The recently introduced BCM5706 C-NIC includes an integrated Transmission Control Protocol/Internet Protocol (TCP/IP) offload engine (TOE), iSCSI host bus adapter functionality, Remote Direct Memory Access (RDMA) technology for clustering, and remote system management. The next generation NetXtreme II family of Gigabit Ethernet controllers is the first line of controllers in the industry to simultaneously perform storage networking, high-performance clustering, accelerated TCP/IP data networking and remote system management pass-through functions at a cost intended to promote ubiquitous adoption of the technology.
Broadcom's Gigabit Ethernet networking product portfolio includes switching products, transceivers, security processors and controllers for servers, workstations, desktops and mobile PCs, providing the industry's most comprehensive portfolio of Gigabit Ethernet solutions. Its GbE solutions are the most widely deployed and field proven in the industry.
About Broadcom
Broadcom Corporation is a leading provider of highly integrated semiconductor solutions that enable broadband communications and networking of voice, video and data services. We design, develop and supply complete system-on-a-chip (SoC) solutions incorporating digital, analog, radio frequency (RF), microprocessor and digital signal processing (DSP) technologies, as well as related hardware and software system-level applications. Our diverse product portfolio addresses every major broadband communications market, and includes solutions for digital cable and satellite set-top boxes; high definition television (HDTV); cable and digital subscriber line (DSL) modems and residential gateways; high-speed transmission and switching for local, metropolitan, wide area and storage networking; home and wireless networking; cellular and terrestrial wireless communications; Voice over Internet Protocol (VoIP) gateway and telephony systems; broadband network and security processors; and SystemI/O™ server solutions. These technologies and products support our core mission: Connecting everything®.
Broadcom is headquartered in Irvine, Calif., and may be contacted at 1-949-450-8700 or at www.broadcom.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995:
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 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. 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 factors that may cause such a difference for Broadcom in connection with its NetXtreme™ Gigabit Ethernet controller products include, but are not limited to, general economic and political conditions and specific conditions in the markets we address, including the volatility in the technology sector and semiconductor industry, trends in the broadband communications markets in various geographic regions, and possible disruption in commercial activities related to terrorist activity or armed conflict in the United States and other locations; the rate at which our present and future customers and end-users adopt Broadcom's technologies and products in the markets for enterprise networking applications; delays in the adoption and acceptance of industry standards in those markets; our ability to scale our operations in response to changes in demand for our products and services; the timing, rescheduling or cancellation of significant customer orders and our ability, as well as the ability of our customers, to manage inventory; our ability to retain, recruit and hire key executives, technical personnel and other employees in the positions and numbers, with the experience and capabilities, and at the compensation levels needed to implement our business and product plans; our ability to specify, develop or acquire, complete, introduce, market and transition to volume production new products and technologies in a cost-effective and timely manner; the gain or loss of a key customer, design win or order; competitive pressures and other factors such as the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; the timing of customer-industry qualification and certification of our products and the risks of non-qualification or non-certification; our ability to timely and accurately predict market requirements and evolving industry standards and to identify opportunities in new markets; changes in our product or customer mix; the volume of our product sales and pricing concessions on volume sales; intellectual property disputes and customer indemnification claims and other types of litigation risk; the availability and pricing of third party semiconductor foundry and assembly capacity and raw materials; fluctuations in the manufacturing yields of our third party semiconductor foundries and other problems or delays in the fabrication, assembly, testing or delivery of our products; the risks of producing products with new suppliers and at new fabrication and assembly facilities; the effects of new and emerging technologies; problems or delays that we may face in shifting our products to smaller geometry process technologies and in achieving higher levels of design integration; the quality of our products and any remediation costs; the effectiveness of our expense and product cost control and reduction efforts; the risks and uncertainties associated with our international operations, particularly in light of recent events; the effects of natural disasters, public health emergencies, international conflicts and other events beyond our control; the level of orders received that can be shipped in a fiscal quarter; and other factors.
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 speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement for any reason.
Broadcom®, the pulse logo, Connecting everything®, the Connecting everything logo, NetXtreme™ and SystemI/O™ are trademarks of Broadcom Corporation and/or its affiliates in the United States and certain other countries. PCI-X™ and PCI Express™ are trademarks of PCI SIG Corporation. Any other trademarks or trade names mentioned are the property of their respective owners.
For further information please contact:
Broadcom Trade Press Contact
Scott Harlin
Sr. Communications Specialist
949-926-5226
sharlin@broadcom.com
Broadcom Business Press Contact
Bill Blanning
Sr. Director, Corporate Communications
949-926-5555
blanning@broadcom.com
Broadcom Technical Contact
Sean Hall
Channel Marketing Manager
949-926-5267
shall@broadcom.com
Broadcom Investor Relations Contact
T. Peter Andrew
Sr. Director, Investor Relations
949-926-5663
andrewtp@broadcom.com
SOURCE Broadcom Corporation
trade press, Scott Harlin, Sr. Communications Specialist, +1-949-926-5226, sharlin@broadcom.com, or business press, Bill Blanning, Sr. Director, Corporate Communications, +1-949-926-5555, blanning@broadcom.com, or technical, Sean Hall, Channel Marketing Manager, +1-949-926-5267, shall@broadcom.com, or investor relations, T. Peter Andrew, Sr. Director, Investor Relations, +1-949-926-5663, andrewtp@broadcom.com, all of Broadcom Corporation
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