Fireside chat with Mr. Scott McGregor, President & CEO of Broadcom Corporation

I have organized an event with Mr. Scott McGregor at TiE (The Indus Entrepreneurs).
It was an awesome experience hosting the session. Audience learned a lot and at
the same time had a bit of fun.

Interesting points from the discussion

Noted that BRCM currently has >70% engineers, and would like to maintain this level.
(Very lean admin personnel gives the company a start-up feel).

Continue to expect their employees to make their money via equity, and they noted
that equity would continue to be major component of total compensation.

Noted a recent Bluetooth win this past week with a new handset provider, but would
not disclose the customer.

M&A is driven mainly by the various divisions. Said that they only really have 2 people
who focus on M&A full-time. Most of the time, deals are driven by champions within
the divisions.

Said that they would continue to be acquisitive, but they would mostly focus on
smaller companies. Prefer smaller companies because they don't have to deal
with existing infrastructure.

They've been doing 1 - 2 acquisitions over the past several quarters, and they
expect to continue to do deals at this rate do deals at this rate.

Reiterated the benefits of the M-stream acquisition, and how it increases
coverage by a factor of 2x.

Noted that software is the key for semi investment (especially for start-ups).
BRCM would continue to look for start-ups that can provide value added SW
that can be embedded.

Believe margins in the cell phone market will all Eventually go to the silicon
providers and software/service providers. Don't believe the handset
manufacturers will be able to sustain their margin profiles long-term (said he
was surprised that handset manufacturers were able to keep the margins
that they currently have).

Believe the number of radios within the handset is set to explode. Not sure
how feasible software radios will be because of the fact that multiple radios
will be needed in order to simultaneously Multitask on the handset (i.e. use
Bluetooth and wifi at the same time).

Focused on the recent Sprint announcement, and noted that the modulation
technologies, bandwidth, and spectrum still needs to be worked out before
WiMax can take off.