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Created by Bhavin Gandhi

Bhavin.Gandhi@igt.com
May 31st, 2009
  Overview of Broadcom Corporation
  Overview of Texas Instruments, Inc.
  Business comparison
  Financial Statement’s comparison
  Financial Ratio comparison
  Conclusion
  Questions

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  Address: 5300 California Avenue,
Irvine, CA 92617
  URL: http://www.broadcom.com
  Founded: August, 1991
  Ticker: BRCM
  Employees: 7,402

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  Broadband Communications
  Enterprise Networking
  Mobile & Wireless

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  Address: 12500 Texas Instruments
Blvd, Dallas, TX 75266
  URL: www.ti.com
  Founded: 1972
  Ticker: TXN
  Employees: 29,537

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  Communications
  Industrial
  Consumer Electronics
  Computing
  Automotive
  Education

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Broadcom Corp - 2008 Texas Instruments - 2008
Broadband Communication Enterprise Networking Communications Computing Industrial
Mobile and Wireless Consumer Automotive Education

6% 4%
36% 37% 10%
48%
10%

22%
27%

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Broadcom Corp - 2008 Texas Instruments - 2008
Asia Europe USA Others Asia Europe USA Japan Others

1% 3%

10%
30%
13%

60% 59%
10% 15%

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Broadcom’s Common-sized Balance Sheet
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Broadcom’s Common-sized Income Statement

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Texas Instruments’ Common-sized Balance Sheet
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Texas Instruments’ Common-sized Income Statement

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Broadcom Corporation Texas Instruments, Inc.
6000 20000

5000

4000 15000

3000

2000 10000

1000

0 5000
2008 2007 2006 2005 2004 2003 2002 2001 2000 1999
-1000

-2000 0
2008 2007 2006 2005 2004 2003 2002 2001 2000 1999
-3000

-4000 -5000
Sales Assets Net Income Sales Assets Net Income

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Broadcom Corporation Texas Instruments, Inc.
5000 16000

4500
14000
4000
12000
3500
10000
3000

2500 8000

2000
6000
1500
4000
1000
2000
500

0 0
2008 2007 2006 2005 2004 2008 2007 2006 2005 2004

Revenue R&D Revenue R&D

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Quick ratio comparison Current ratio comparison
5.00 6.00

4.50
5.00
4.00

3.50
4.00

Current Ratio
3.00
Quick Ratio

2.50 3.00

2.00
2.00
1.50

1.00
1.00
0.50

0.00 0.00
2008 2007 2006 2005 2004 2008 2007 2006 2005 2004
Broadcom 3.17 3.69 4.51 3.40 2.78 Broadcom 3.84 4.18 4.94 3.90 3.17
Texas Instruments 2.25 2.30 2.64 2.94 4.08 Texas Instruments 3.78 3.42 3.78 3.96 5.33

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Days’ sales outstanding Days sales of inventory
(DSO) comparison (DSI) comparison
60.00 90.00

80.00
50.00
70.00

40.00 60.00

50.00
DSO

DSI
30.00
40.00

20.00 30.00

20.00
10.00
10.00

0.00 0.00
2008 2007 2006 2005 2004 2008 2007 2006 2005 2004
Broadcom 29.17 35.66 38.10 42.00 31.19 Broadcom 60.38 46.08 41.22 56.02 39.13
Texas Instruments 26.66 45.96 45.42 48.77 48.82 Texas Instruments 80.22 80.04 74.97 68.45 67.84

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Return on assets Return on equity
comparison comparison
35.00 40.00

30.00 35.00

30.00
25.00

25.00
Percentage

Percentage
20.00
20.00
15.00
15.00

10.00
10.00

5.00 5.00

0.00 0.00
2008 2007 2006 2005 2004 2008 2007 2006 2005 2004
Broadcom 4.89 4.41 7.77 9.78 6.00 Broadcom 5.95 5.29 9.04 11.69 7.33
Texas Instruments 16.10 20.98 30.76 15.43 10.76 Texas Instruments 20.59 26.64 37.72 19.47 13.42

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Return on sales comparison
35.00

30.00

25.00
ROS in percentage

20.00

15.00

10.00

5.00

0.00
2008 2007 2006 2005 2004
Broadcom 4.61 5.65 10.33 13.74 7.21
Texas Instruments 15.36 19.20 30.06 18.84 15.17

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Debt to equity ratio comparison
0.30

0.25

0.20
D/E - ratio

0.15

0.10

0.05

0.00
2008 2007 2006 2005 2004
Broadcom 0.22 0.20 0.16 0.19 0.22
Texas Instruments 0.28 0.27 0.23 0.26 0.25

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Earnings per share (EPS) comparison
3

-1
Amount in dollars

-2

-3

-4

-5

-6

-7

-8
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Broadcom 0.21 -2.08 -7.2 -5.56 -2.95 0.33 0.66 0.64 0.37 0.41
Texas Instruments 0.83 1.73 -0.17 -0.27 0.6 0.9 1.3 1.66 1.83 1.45

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  Inflationin semiconductor industry
  Increasing cost of manufacturing
  Growing importance of Consumer
market
  Texas Instruments proves to be the
winner

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Contact Details:
Bhavin Gandhi
Bhavin.Gandhi@igt.com