Broadcom Corporation (NASDAQ:BRCM) recently reported its first quarter earnings and discussed the following topics in its earnings conference call.
3G Baseband Platform
Harlan Sur – JPMorgan: Great job on the quarterly execution. I still see the broad-based growth you’re guiding to in Q2. Can you guys just help us rank order the segments in terms of growth? In other words, which segments are going to be driving most of the incremental growth in Q2? I’m assuming Mobile & Wireless is probably the strongest given the connectivity and baseband ramps into a number of different smartphone customers and models, but just wanted to get your views, and then I have a follow-up question.
Scott A. McGregor – President and CEO: We didn’t differentiate between the segments, and so you can see that on average, we’re up across all of them, but we didn’t separate the different segments.
Harlan Sur – JPMorgan: Then your 3G baseband platform during Q1, modestly I think you said it’s going to grow during Q2. You had some great initial traction with your dual core 3G baseband platform, obviously initially with Samsung, the S II Plus, the Galaxy Grand. I think there are another three or four new smartphones including some of the models like the Ace 3 and the Galaxy Pocket follow-ons that are targeted to ramp during Q2. So, I guess the question is how is your pipeline in the second half shaping up for your dual core and single core platforms in terms of new smartphone ramps? Again in other words, do you expect your 3G platforms to continue to drive growth through the second half of this year?
Scott A. McGregor – President and CEO: One of the drivers certainly for the first quarter was the dual core basebands. As you pointed out there is a pipeline of new designs, some already announced and some not yet announced that we think will continue the momentum through the course of this year and we do expect our baseband business to grow because of that. Another driver also was the 5G WiFi for us in Q1. So I think certainly in Q1 5G WiFi and dual core basebands were stars for us and I expect those would continue going forward.
Gross Margin Details
Ross Seymore – Deutsche Bank: Congrats on the strong quarter and guide. Eric, you mentioned that the gross margin was going to be down a little bit because of mix was one of the two reasons you gave. Can you go into a little bit of color about what’s specifically is going on with mix there, please?
Eric K. Brandt – EVP and CFO: Sure, Ross. So the way to think about it is, a lot of it relates to the strengths that we saw in Q1 related to Mobile & Wireless. So, the one-time benefit was probably on the (non-center cost) ;probably around 30 basis points. So absent that, you would have seen about another 30 basis points drop in the quarter and maybe about 10 basis points or 15 just on absorption, just based on the higher mix. So, if you would roll that forward into Q2 we would be roughly flat to down slightly. So what it really is, is it’s the strength of Mobile & Wireless sort of being massed a little bit by this one-time benefit that you just see continuing into Q2.
Ross Seymore – Deutsche Bank: I guess another question on the Wireless side quickly. The quad combo that you talked about, where you going to include the NFC into the combo chip. How should we think about the timing of that launching and what are the sort of products that you think that will go into first tablets, phones et cetera?
Scott A. McGregor – President and CEO: So that product is just now available to customers and I expect over the course of this year that should be a strong grower for us. I would say probably the largest market for that is going to be the cell phone market, just simply because of the size of that market, although we do have a lot of interest for all kinds of other products. It’s a very, very convenient combo because it includes NFC and all the other major Wireless technologies all put in together.