Posted date: 3/1/2005

Broadcom: Options Would've Driven Loss

Chipmaker Said It Would Have Lost Money Last Year Under Pending Rule

By Michael Lyster
Orange County Business Journal Staff

Account for options, forget about profits.

Irvine chipmaker Broadcom Corp. said treating stock options as expenses would have cost some $677 million last year and resulted in a loss.

Broadcom would have lost about $395 million last year instead of posting a $207 million profit, according to a Reuters story based on the chipmaker's annual report.

The Securities and Exchange Commission plans to require companies to account for options as expenses starting in June.

"The adoption of (those rules) will have a significant impact on our reported results of operations, although it will have no impact on our overall financial position," Broadcom said in its annual report.

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the House of PAC Representation decided that companies shouldn't lose money, and voted against the FASB regulation. the elite scum that is the Senate think companies should lose money?

i wonder if campaign contributions were affected, what the outcome might be. as an employee of a upstanding publicly traded company, well this isn't the sort of story that puts a glimmer in my eye. why is it that the few bad apples continually ruin it for the rest of us? oh, that's right, we let them.

martha stewart went to prison, but ken lay, jeff skilling and dennis kozlowski walked. why? because we let them.