Capital expenditures for the second quarter are expected to be in the range of $52 million to $57 million. For the second quarter depreciation is expected to be $19 million and amortization is expected to be $19 million.
The guidance provided above is only an estimate of what the Company believes is realizable as of the date of this release. The guidance excludes any impact from share repurchases or mergers and acquisitions activity that may occur during the quarter. Actual results will vary from the guidance and the variations may be material. The Company undertakes no intent or obligation to publicly update or revise any of these projections, whether as a result of new information, future events or otherwise, except as required by law.
Avago will be presenting at the Morgan Stanley Technology, Media and Telecom Conference in San Francisco on February 28, 2012. This presentation will be webcast and available for replay on the “Investors” section of Avago’s website at www.avagotech.com.
Financial Results Conference Call
Avago Technologies Limited will host a conference call to review its financial results for the first quarter of fiscal year 2012, and to provide guidance for the second quarter of fiscal year 2012, today at 2:00 p.m. Pacific Time. Those wishing to access the call should dial 800-659-2056; International +1-617-614-2714. The passcode is 62281881. A replay of the call will be available through February 29, 2012. To access the replay dial 888-286-8010; International +1-617-801-6888 and reference the passcode: 29739115. A webcast of the conference call will also be available in the “Investors” section of Avago’s website at www.avagotech.com.
Non-GAAP Financial Measures
In addition to GAAP reporting, Avago provides investors with net income, income from operations, gross margin, operating expenses and other data, on a non-GAAP basis. This non-GAAP information excludes amortization of acquisition-related intangibles, share-based compensation expense, restructuring charges and debt extinguishment losses. Management does not believe that the excluded items are reflective of the Company’s underlying performance. The exclusion of these and other similar items from Avago’s non-GAAP presentation should not be interpreted as implying that these items are non-recurring, infrequent or unusual. Avago believes this non-GAAP financial information provides additional insight into the Company’s on-going performance and has therefore chosen to provide this information to investors for a more consistent basis of comparison and to help them evaluate the results of the Company’s on-going operations and enable more meaningful period to period comparisons. These non-GAAP measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. A reconciliation between GAAP and non-GAAP financial data is included in the supplemental financial data attached to this press release.
About Avago Technologies Limited
Avago Technologies Limited is a leading designer, developer and global supplier of a broad range of analog semiconductor devices with a focus on III-V based products. Our product portfolio is extensive and includes over 6,500 products in four primary target markets: wireless communications, wired infrastructure, industrial and automotive electronics and consumer and computing peripherals.
Cautionary Note Regarding Forward-Looking Statements
This announcement contains forward-looking statements which address our
expected future business and financial performance. These
forward-looking statements are based on current expectations, estimates,
forecasts and projections of future Company or industry performance,
based on management’s judgment, beliefs, current trends and market
conditions, and involve risks and uncertainties that may cause actual
results to differ materially from those contained in the forward-looking
statements. Accordingly, we caution you not to place undue reliance on
these statements. For Avago, particular uncertainties that could
materially affect future results include global economic conditions and
concerns; cyclicality in the semiconductor industry or in our target
markets; quarterly and annual fluctuations in operating results; our
competitive performance and ability to continue achieving design wins
with our customers; our dependence on contract manufacturing and
outsourced supply chain and our ability to improve our cost structure
through our manufacturing outsourcing program; prolonged disruptions of
our or our contract manufacturers’ manufacturing facilities or other
significant operations; our increased dependence on outsourced service
providers for certain key business services and their ability to execute
to our requirements; loss of our significant customers; our ability to
maintain gross margin; our ability to maintain tax concessions in
certain jurisdictions; our ability to protect our intellectual property
and any associated increases in litigation expenses; dependence on and
risks associated with distributors of our products; any expenses
associated with resolving customer product and warranty and
indemnification claims; currency fluctuations; our ability to achieve
the growth prospects and synergies expected from our acquisitions;
delays, challenges and expenses associated with integrating acquired
companies with our existing businesses; and other events and trends on a
national, regional and global scale, including those of a political,
economic, business, competitive and regulatory nature. Our 2011 Annual
Report on Form 10-K filed on December 16, 2011 and other filings with
the Securities and Exchange Commission, or “SEC” (which you may obtain
for free at the SEC’s website at
discuss some of the important risk factors that may affect our business,
results of operations and financial condition. We undertake no intent or
obligation to publicly update or revise any of these forward looking
statements, whether as a result of new information, future events or
otherwise, except as required by law.