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Charter Reports Third Quarter Financial and Operating Results (Business Wire)

biz.yahoo.com | Nov 6, 2008

All of the following customer growth and ARPU statistics are presented on a pro forma basis. RGUs increased 205,400 during the third quarter of 2008, representing more than a 50 percent increase in net adds versus the year-ago quarter.

http://biz.yahoo.com/bw/081106/20081106005572.html?.v=1

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=================================================== DIGITAL MEDIA WIRE -- November 4, 2002 =================================================== To Subscribe For Free: http://www.digitalmediawire.

http://www.digitalmediawire.com/archives_110402.html

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Home-Theater-Advice.com Related Links Ethernet Training Optical Ethernet Industrial Ethernet Ethernet Remote IO Modbus Ethernet Ethernet Gigabit Ethernet Ethernet Adapter Ethernet Card Embedded Ethernet Ethernet I/o PCI Ethernet Cards Ethernet Cable Ethernet Data Acquisition PCI Ethernet Controller

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Mass Transit’s Jason Burnham - iMediaConnection.com

Find out how this president and media director is using reach & frequency metrics, and why he believes education is still a key element for growing the industry.

http://www.imediaconnection.com/content/1254.asp

Videolinea System - Product info

It's also got a monitor function that allows it to be used as an A/D converter or sample rate converter, without the need to place a recordable disk in the tray or enter record mode. And of course, it's the only one in its class that will rack mount with the rest of your gear.

http://www.videolinea.com/news.asp?nid=28

 

Charter Reports Third Quarter Financial and Operating Results - Zibb.com

Charter Communications, Inc. (NASDAQ:CHTR) (along with its subsidiaries, the "Company" or "Charter") today reported financial and operating results for the third quarter and first nine months of 2008.

-- Third quarter revenues of $1.636 billion grew 7.8% year-over-year on a pro forma(1) basis and 7.3% on an actual basis, primarily driven by increases in telephone and high-speed Internet (HSI) revenues.

-- Third quarter adjusted EBITDA(2) of $563 million increased 10.8% year-over-year on a pro forma basis and 10.4% on an actual basis.

-- Third quarter adjusted EBITDA margin of 34.4% increased 90 basis points year-over-year on a pro forma basis.

-- Total ARPU(3) for the quarter increased 11.1% year-over-year to $106.07, driven by increased sales of The Charter Bundle(TM), advanced services growth and upgrading customers to higher service tiers.

-- Revenue generating units (RGUs) increased 7.0% year-over-year, with 205,400 net additions during the third quarter of 2008.

"Our financial and operational performance in the third quarter once again demonstrates the Company's disciplined approach toward increasing bundle penetration and focus on continuously improving our customers' experiences," said Neil Smit, President and Chief Executive Officer.

Key Operating Results

All of the following customer growth and ARPU statistics are presented on a pro forma basis. RGUs increased 205,400 during the third quarter of 2008, representing more than a 50 percent increase in net adds versus the year-ago quarter. As of September 30, 2008, Charter served approximately 5,544,400 customers and the Company's 12,387,100 RGUs were comprised of 5,136,100 basic video; 3,118,500 digital video; 2,858,200 HSI, and 1,274,300 telephone customers.

-- Telephone customers increased by approximately 98,800 during the third quarter of 2008 and the number of telephone customers is up nearly 60% year-over-year. Telephone penetration is now 12.4% of telephone homes passed.

-- HSI customers increased by approximately 70,900 in the third quarter of 2008, a 32% higher net gain than during the year-ago quarter. While HSI customers continued to climb, ARPU remained essentially flat with last year at $40.53.

-- Digital video customers increased by approximately 61,600 and basic video customers decreased by 25,900 during the third quarter. Video ARPU was $58.87 for the third quarter of 2008, up 6.6% year-over-year.

Third quarter 2008 total ARPU increased 11.1% to $106.07 from the same period in 2007, driven primarily by an increase in bundled customers, advanced services growth, and upgrading customers to higher service tiers.

Third Quarter Results -- Pro forma

Third quarter revenues were $1.636 billion, a pro forma increase of 7.8%, or $119 million. The increase resulted primarily from increases in telephone and HSI revenues.

Telephone revenues were $144 million, a 54.8% increase over third quarter 2007 pro forma telephone revenues, driven by a larger telephone customer base. HSI revenues were $342 million, up 8.2% year-over-year on a pro forma basis, due to an increased number of customers. Video revenues were $867million, up 3.2% year-over-year on a pro forma basis, primarily as a result of digital and advanced services revenue growth, partially offset by a decline in basic video customers. Commercial revenues rose to $100 million, a 16.3% increase on a pro forma basis, resulting from increased sales of the Charter Business Bundle(R) primarily to small and medium-size businesses.

Operating expenses, which include programming, service and advertising sales costs, were $710 million, a 5.3% increase year-over-year on a pro forma basis, reflecting annual programming rate increases, increased labor costs to support improved service levels, and growth of the Company's telephone business and other advanced services. Selling, general, and administrative expenses were $363 million, up 8.4% on a pro forma basis compared to the year-ago quarter, reflecting expenditures to further improve the customer experience and increased marketing expenditures targeted at growing and retaining customers.

Adjusted EBITDA totaled $563million for the third quarter of 2008, a pro forma increase of 10.8% compared to the year-ago quarter. The third quarter adjusted EBITDA margin was 34.4%, up from 33.5% in the year-ago quarter on a pro forma basis.

Net cash flows from operating activities for the third quarter of 2008 were $242 million, compared to $207 million for the third quarter of 2007 on a pro forma basis. The increase in cash flows from operating activities is primarily the result of the increase in HSI and telephone revenues driven by the bundle and improved cost efficiencies.

Nine Months Results -- Pro forma

For the nine months ended September 30, 2008, revenues were $4.823 billion, a pro forma increase of $400 million, or 9.0%, primarily from telephone and HSI revenue growth.

Telephone revenues increased to $399 million from pro forma revenues of $236 million a year ago, up 69.1% year-over-year. HSI revenues increased to $1.009 billion, up 10.2% year-over-year on a pro forma basis. Video revenues were $2.599 billion, an increase of 3.0% year-over-year on a pro forma basis. Commercial revenues increased to $289 million, up 16.1% on a pro forma basis.

Operating expenses for the nine months ended September 30, 2008 were $2.089 billion, an increase of 7.6% year-over-year on a pro forma basis; and selling, general, and administrative expenses were $1.035 billion, up 9.8% on a pro forma basis.

Adjusted EBITDA totaled $1.699 billion for the first nine months of 2008, a pro forma increase of 10.5% compared to the same nine-month period in 2007.

Net cash flows provided by operating activities for the first nine months of 2008 were $410 million, compared to $319 million for the first nine months of 2007 on a pro forma basis. The increase in cash flows provided by operating activities is primarily the result of increased sales of our bundled services and improved cost efficiencies, partially offset by changes in operating assets and liabilities that provided less cash in 2008 than the corresponding period in 2007.

Third Quarter Results -- Actual

Third quarter revenues increased 7.3% and operating costs and expenses increased 5.7% compared to year-ago results. Adjusted EBITDA for the third quarter of 2008 rose 10.4% compared to the year-ago period.

Income from operations was $208 million in the third quarter of 2008, compared to $107 million in the third quarter of 2007. Net loss for the third quarter of 2008 was $322 million, or $0.86 per common share. For the third quarter of 2007, Charter reported a net loss of $407million and net loss per common share of $1.10. The increase in income from operations and decrease in net loss resulted primarily from increased sales of our bundled services and improved cost efficiencies. Additionally, the Company recorded a $56 million asset impairment charge in 2007 that did not reoccur in 2008.

Expenditures for property, plant, and equipment for the third quarter of 2008 were $288 million, compared to third quarter 2007 expenditures of $311 million. The decrease in capital expenditures primarily reflects year-over-year decreases in scalable infrastructure and support capital.

Net cash flows from operating activities for the third quarter of 2008 were $242 million, compared to $209 million for the third quarter of 2007.

Nine Months Results -- Actual

Revenues for the nine months ended September 30, 2008 increased 8.4% year-over-year. Operating costs and expenses rose 7.6% compared to year-ago actual results. Adjusted EBITDA for the first nine months of 2008 grew 9.9% compared to the year-ago period.

Income from operations increased to $643 million for the first nine months of 2008, compared to $463 million in the first nine months of 2007. Net loss for the first nine months of the year was $956 million, or $2.57 per common share. For the first nine months of 2007, Charter reported a net loss of $1.148 billion and net loss per common share of $3.12. The increase in income from operations and the decrease in net loss are primarily attributable to revenue growth from HSI and telephone driven by the bundle, as well as improved cost efficiencies and a decline in non-operating expenses.

Capital expenditures for property, plant, and equipment for the nine months ended September 30, 2008 were $938 million, compared to $890 million in 2007. The increase in capital expenditures primarily reflects year-over-year increases in customer premise equipment. Charter expects that capital expenditures in the year 2008 will total approximately $1.2 billion, with over 75% of that amount directed toward success-based activities.

Net cash flows provided by operating activities for the first nine months of 2008 were $410 million, compared to $327 million for the first nine months of 2007. The increase in cash flows provided by operating activities is primarily the result of revenue growth from HSI and telephone driven by the bundle, as well as improved cost efficiencies, partially offset by changes in operating assets and liabilities that provided less cash in 2008 than the corresponding period in 2007.

As of September 30, 2008, Charter had $21.031 billion in long-term debt. Cash on hand and availability under the Company's revolving credit facility totaled approximately $1.3 billion on September 30, 2008, none of which was limited by covenant restrictions.

Use of Non-GAAP Financial Metrics

The Company uses certain measures that are not defined by Generally Accepted Accounting Principles ("GAAP") to evaluate various aspects of its business. Adjusted EBITDA, pro forma adjusted EBITDA, and free cash flow are non-GAAP financial measures and should be considered in addition to, not as a substitute for, net cash flows from operating activities reported in accordance with GAAP. These terms, as defined by Charter, may not be comparable to similarly titled measures used by other companies.

Adjusted EBITDA is defined as income from operations before depreciation and amortization, impairment charges, stock compensation expense, and other operating expenses, such as special charges and loss on sale or retirement of assets. As such, it eliminates the significant non-cash depreciation and amortization expense that results from the capital-intensive nature of the Company's businesses as well as other non-cash or non-recurring items, and is unaffected by the Company's capital structure or investment activities. Adjusted EBITDA and pro forma adjusted EBITDA are liquidity measures used by Company management and its board of directors to measure the Company's ability to fund operations and its financing obligations. For this reason, it is a significant component of Charter's annual incentive compensation program. However, this measure is limited in that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues and the cash cost of financing for the Company. Company management evaluates these costs through other financial measures.

Free cash flow is defined as net cash flows from operating activities, less capital expenditures and changes in accrued expenses related to capital expenditures.

The Company believes that adjusted EBITDA, pro forma adjusted EBITDA, and free cash flow provide information useful to investors in assessing Charter's ability to service its debt, fund operations, and make additional investments with internally generated funds. In addition, adjusted EBITDA generally correlates to the leverage ratio calculation under the Company's credit facilities or outstanding notes to determine compliance with the covenants contained in the facilities and notes (all such documents have been previously filed with the United States Securities and Exchange Commission). Adjusted EBITDA and pro forma adjusted EBITDA, as presented, include management fee expenses in the amount of $33 million and $32 million for the three months ended September 30, 2008 and 2007, respectively, which expense amounts are excluded for the purposes of calculating compliance with leverage covenants.

In addition to the actual results for the three and nine months ended September 30, 2008 and 2007, we have provided pro forma results in this release for the three and nine months ended September 30, 2007. We believe these pro forma results facilitate meaningful analysis of the results of operations. Pro forma results in this release reflect certain sales and acquisitions of cable systems in 2007 as if they had occurred as of January 1, 2007. Pro forma statements of operations for the three and nine months ended September 30, 2007; and pro forma customer statistics as of December 31, 2007 and September 30, 2007, are provided in the addendum of this news release.

Additional Information Available on Website

A slide presentation to accompany the third quarter conference call will be available on the Investor & News Center of our website at www.charter.com in the "Presentations/Webcasts" section. Pro forma data, including disclosure concerning the pro forma data and the basis upon which it was calculated, for each quarter of 2007, can also be found on the Investor & News Center in the "Pro forma Information" section.

Conference Call

The Company will host a conference call on Thursday, November 6, 2008, at 9:00 a.m. Eastern Time (ET) related to the contents of this release.

The conference call will be webcast live via the Company's website at www.charter.com. Access the webcast by clicking on "About Charter" at the top of the home page, then Investor & News Center. Participants should go to the call link at least 10 minutes prior to the start time to register. The call will be archived on the website beginning two hours after its completion. Accompanying slides will also be available on the site.

Those participating via telephone should dial 888/233-1576 no later than 10 minutes prior to the call. International participants should dial 706/643-3458. The passcode for the call is 70440618.

A replay of the call will be available at 800/642-1687 or 706/645-9291 beginning two hours after the completion of the call through the end of business on November 13, 2008. The passcode for the replay is 70440618.

About Charter Communications(R)

Charter Communications, Inc. is a leading broadband communications company and the third-largest publicly traded cableoperator in the United States.Charter provides a full range of advanced broadband services, including advanced Charter Digital Cable(R) video entertainment programming, Charter High-Speed(R) Internet access, and Charter Telephone(R). Charter Business(TM) similarly provides scalable, tailored, and cost-effective broadband communications solutions to business organizations, such as business-to-business Internet access, data networking, video and music entertainment services, and business telephone.Charter's advertising sales and production services are sold under the Charter Media(R) brand.More information about Charter can be found at www.charter.com.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS:

This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding, among other things, our plans, strategies and prospects, both business and financial. Although we believe that our plans, intentions and expectations reflected in or suggested by these forward-looking statements are reasonable, we cannot assure you that we will achieve or realize these plans, intentions or expectations. Forward-looking statements are inherently subject to risks, uncertainties and assumptions including, without limitation, the factors described under "Risk Factors" from time to time in our filings with the Securities and Exchange Commission ("SEC"). Many of the forward-looking statements contained in this release may be identified by the use of forward-looking words such as "believe," "expect," "anticipate," "should," "planned," "will," "may," "intend," "estimated," "aim," "on track," "target," "opportunity" and "potential," among others. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this release are set forth in other reports or documents that we file from time to time with the SEC, and include, but are not limited to:

-- the availability, in general, of funds to meet interest payment obligations under our debt and to fund our operations and necessary capital expenditures, either through cash flows from operating activities, further borrowings or other sources and, in particular, our ability to fund debt obligations (by dividend, investment or otherwise) to the applicable obligor of such debt;

-- our ability to comply with all covenants in our indentures and credit facilities, any violation of which, if not cured in a timely manner, could trigger a default of our other obligations under cross-default provisions;

-- our ability to repay debt prior to or when it becomes due and/or successfully access the capital or credit markets to refinance that debt through new issuances, exchange offers or otherwise, including restructuring our balance sheet and leverage position, especially given recent volatility and disruption in the capital and credit markets;

-- the impact of competition from other distributors, including incumbent telephone companies, direct broadcast satellite operators, wireless broadband providers, and digital subscriber line ("DSL") providers;

-- difficulties in growing, further introducing, and operating our telephone services, while adequately meeting customer expectations for the reliability of voice services;

-- our ability to adequately meet demand for installations and customer service;

-- our ability to sustain and grow revenues and cash flows from operating activities by offering video, high-speed Internet, telephone and other services, and to maintain and grow our customer base, particularly in the face of increasingly aggressive competition;

-- our ability to obtain programming at reasonable prices or to adequately raise prices to offset the effects of higher programming costs;

-- general business conditions, economic uncertainty or downturn, including the recent volatility and disruption in the capital and credit markets and the significant downturn in the housing sector and overall economy; and

-- the effects of governmental regulation on our business.

All forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by this cautionary statement. We are under no duty or obligation to update any of the forward-looking statements after the date of this release.

(1) Pro forma results are described below in the "Use of Non-GAAP Financial Metrics" section and are provided in the addendum of this news release.

(2) Adjusted EBITDA is defined in the "Use of Non-GAAP Financial Metrics" section and is reconciled to net cash flows from operating activities in the addendum of this news release.

(3) Average revenue per basic customer.

CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND OPERATING DATA
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AND SHARE DATA)
                                                                           Three Months Ended September 30,                                          Nine Months Ended September 30,
                                                                           2008                        2007                                          2008                        2007
                                                                           Actual                      Actual                 % Change               Actual                      Actual                 % Change
REVENUES:
Video                                                                  $   867                    $    845                    2.6       %        $   2,599                  $    2,542                  2.2       %
High-speed Internet                                                        342                         318                    7.5       %            1,009                       920                    9.7       %
Telephone                                                                  144                         94                     53.2      %            399                         236                    69.1      %
Commercial                                                                 100                         87                     14.9      %            289                         251                    15.1      %
Advertising sales                                                          80                          77                     3.9       %            223                         216                    3.2       %
Other                                                                      103                         104                    (1.0      %)           304                         284                    7.0       %
Total revenues                                                             1,636                       1,525                  7.3       %            4,823                       4,449                  8.4       %
COSTS AND EXPENSES:
Operating (excluding depreciation and amortization) (a)                    710                         679                    4.6       %            2,089                       1,957                  6.7       %
Selling, general and administrative (excluding stock compensation          363                         336                    8.0       %            1,035                       946                    9.4       %
expense) (b)
Operating costs and expenses                                               1,073                       1,015                  5.7       %            3,124                       2,903                  7.6       %
Adjusted EBITDA                                                            563                         510                    10.4      %            1,699                       1,546                  9.9       %
Adjusted EBITDA margin                                                     34.4         %              33.4         %                                35.2         %              34.7         %
Depreciation and amortization                                              332                         334                                           981                         999
Asset impairment charges                                                   -                           56                                            -                           56
Stock compensation expense                                                 8                           5                                             24                          15
Other operating expenses, net                                              15                          8                                             51                          13
Income from operations                                                     208                         107                                           643                         463
OTHER INCOME (EXPENSES):
Interest expense, net                                                      (478         )              (459         )                                (1,417       )              (1,385       )
Change in value of derivatives                                             10                          (14          )                                (1           )              (18          )
Other expense, net                                                         (5           )              -                                             (7           )              (39          )
                                                                           (473         )              (473         )                                (1,425       )              (1,442       )
Loss before income taxes                                                   (265         )              (366         )                                (782         )              (979         )
Income tax expense                                                         (57          )              (41          )                                (174         )              (169         )
Net loss                                                               $   (322         )         $    (407         )                            $   (956         )         $    (1,148       )
Loss per common share, basic and diluted                               $   (0.86        )         $    (1.10        )                            $   (2.57        )         $    (3.12        )
Weighted average common shares outstanding, basic and diluted              374,145,243                 369,239,742                                   371,968,952                 367,671,479
(a) Operating expenses include programming, service, and advertising
sales expenses.
(b) Selling, general and administrative expenses include general and
administrative and marketing expenses.
Adjusted EBITDA is a non-GAAP term. See page 7 of this addendum for
the reconciliation of adjusted EBITDA to net cash flows from
operating activities as defined by GAAP.
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND OPERATING DATA
(DOLLARS IN MILLIONS, EXCEPT PER SHARE AND SHARE DATA)
                                                                           Three Months Ended September 30,                                            Nine Months Ended September 30,
                                                                           2008                        2007                                            2008                        2007
                                                                           Actual                      Pro Forma (a)            % Change               Actual                      Pro Forma (a)            % Change
REVENUES:
Video                                                                  $   867                    $    840                      3.2       %        $   2,599                  $    2,524                    3.0       %
High-speed Internet                                                        342                         316                      8.2       %            1,009                       916                      10.2      %
Telephone                                                                  144                         93                       54.8      %            399                         236                      69.1      %
Commercial                                                                 100                         86                       16.3      %            289                         249                      16.1      %
Advertising sales                                                          80                          77                       3.9       %            223                         214                      4.2       %
Other                                                                      103                         105                      (1.9      %)           304                         284                      7.0       %
Total revenues                                                             1,636                       1,517                    7.8       %            4,823                       4,423                    9.0       %
COSTS AND EXPENSES:
Operating (excluding depreciation and amortization) (b)                    710                         674                      5.3       %            2,089                       1,942                    7.6       %
Selling, general and administrative (excluding stock compensation          363                         335                      8.4       %            1,035                       943                      9.8       %
expense) (c)
Operating costs and expenses                                               1,073                       1,009                    6.3       %            3,124                       2,885                    8.3       %
Adjusted EBITDA                                                            563                         508                      10.8      %            1,699                       1,538                    10.5      %
Adjusted EBITDA margin                                                     34.4         %              33.5           %                                35.2         %              34.8           %
Depreciation and amortization                                              332                         335                                             981                         997
Stock compensation expense                                                 8                           5                                               24                          15
Other operating expenses, net                                              15                          8                                               51                          12
Income from operations                                                     208                         160                                             643                         514
OTHER INCOME (EXPENSES):
Interest expense, net                                                      (478         )              (459           )                                (1,417       )              (1,385         )
Change in value of derivatives                                             10                          (14            )                                (1           )              (18            )
Other expense, net                                                         (5           )              -                                               (7           )              (39            )
                                                                           (473         )              (473           )                                (1,425       )              (1,442         )
Loss before income taxes                                                   (265         )              (313           )                                (782         )              (928           )
Income tax expense                                                         (57          )              (44            )                                (174         )              (153           )
Net loss                                                               $   (322         )         $    (357           )                            $   (956         )         $    (1,081         )
Loss per common share, basic and diluted                               $   (0.86        )         $    (0.96          )                            $   (2.57        )         $    (2.94          )
Weighted average common shares outstanding, basic and diluted              374,145,243                 369,239,742                                     371,968,952                 367,671,479
(a) Pro forma results reflect certain sales and acquisitions of
cable systems in 2007 as if they occurred as of January 1, 2007.
The pro forma statements of operations do not include adjustments
for financing transactions completed by Charter during the periods
presented or certain other dispositions of assets because those
transactions did not significantly impact Charter's adjusted
EBITDA. However, all transactions completed in 2007 and 2008 have
been reflected in the operating statistics. The pro forma data is
based on information available to Charter as of the date of this
document and certain assumptions that we believe are reasonable
under the circumstances.
The financial data required allocation of certain revenues and
expenses and such information has been presented for comparative
purposes and is not intended to provide any indication of what our
actual financial position, or results of operations would have
been had the transactions described above been completed on the
dates indicated or to project our results of operations for any
future date.
(b) Operating expenses include programming, service, and advertising
sales expenses.
(c) Selling, general and administrative expenses include general and
administrative and marketing expenses.
September 30, 2007. Pro forma revenues, operating
costs and expenses and net loss were reduced by $8 million, $6
million and $50 million, respectively, for the three months ended
September 30, 2007. Pro forma revenues, operating costs and expenses
and net loss were reduced by $26 million, $18 million and $67
million, respectively, for the nine months ended September 30, 2007.
Adjusted EBITDA is a non-GAAP term. See page 7 of this addendum for
the reconciliation of adjusted EBITDA to net cash flows from
operating activities as defined by GAAP.
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED BALANCE SHEETS
(DOLLARS IN MILLIONS)
                                                                    September 30,                 December 31,
                                                                    2008                          2007
ASSETS
CURRENT ASSETS:
Cash and cash equivalents                                    $      569                    $      75
Accounts receivable, net of allowance for doubtful accounts         246                           225
Prepaid expenses and other current assets                           45                            36
Total current assets                                                860                           336
INVESTMENT IN CABLE PROPERTIES:
Property, plant and equipment, net                                  5,062                         5,103
Franchises, net                                                     8,933                         8,942
Total investment in cable properties, net                           13,995                        14,045
OTHER NONCURRENT ASSETS                                             302                           285
Total assets                                                 $      15,157                 $      14,666
LIABILITIES AND SHAREHOLDERS' DEFICIT
CURRENT LIABILITIES:
Accounts payable and accrued expenses                        $      1,465                  $      1,332
Total current liabilities                                           1,465                         1,332
LONG-TERM DEBT                                                      21,031                        19,908
NOTE PAYABLE - RELATED PARTY                                        72                            65
DEFERRED MANAGEMENT FEES - RELATED PARTY                            14                            14
OTHER LONG-TERM LIABILITIES                                         1,205                         1,035
MINORITY INTEREST                                                   204                           199
PREFERRED STOCK - REDEEMABLE                                        -                             5
SHAREHOLDERS' DEFICIT                                               (8,834  )                     (7,892  )
Total liabilities and shareholders' deficit                  $      15,157                 $      14,666
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS
(DOLLARS IN MILLIONS)
                                                                              Three Months Ended                      Nine Months Ended
                                                                              September 30,                           September 30,
                                                                              2008                 2007               2008                2007
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss                                                                  $   (322  )         $    (407  )        $   (956    )       $   (1,148  )
Adjustments to reconcile net loss to net cash flows from operating
activities:
Depreciation and amortization                                                 332                  334                981                 999
Asset impairment charges                                                      -                    56                 -                   56
Noncash interest expense                                                      16                   10                 43                  31
Change in value of derivatives                                                (10   )              14                 1                   18
Deferred income taxes                                                         55                   38                 169                 161
Other, net                                                                    17                   10                 39                  49
Changes in operating assets and liabilities, net of effects from
dispositions
Accounts receivable                                                           3                    (4    )            (21     )           (33     )
Prepaid expenses and other assets                                             (9    )              (5    )            (9      )           21
Accounts payable, accrued expenses and other                                  160                  163                163                 173
Net cash flows from operating activities                                      242                  209                410                 327
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment                                    (288  )              (311  )            (938    )           (890    )
Change in accrued expenses related to capital expenditures                    -                    (12   )            (41     )           (51     )
Other, net                                                                    10                   (25   )            (1      )           6
Net cash flows from investing activities                                      (278  )              (348  )            (980    )           (935    )
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings of long-term debt                                                  590                  225                2,355               7,472
Repayments of long-term debt                                                  (43   )              (114  )            (1,238  )           (6,841  )
Payments for debt issuance costs                                              (3    )              -                  (42     )           (33     )
Other, net                                                                    (2    )              6                  (11     )           9
Net cash flows from financing activities                                      542                  117                1,064               607
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS                          506                  (22   )            494                 (1      )
CASH AND CASH EQUIVALENTS, beginning of period                                63                   81                 75                  60
CASH AND CASH EQUIVALENTS, end of period                                  $   569             $    59             $   569             $   59
CASH PAID FOR INTEREST                                                    $   329             $    312            $   1,241           $   1,230
NONCASH TRANSACTIONS:
Cumulative adjustment to Accumulated Deficit for the adoption of FIN      $   -               $    -              $   -               $   56
48
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED SUMMARY OF OPERATING STATISTICS
                                                                             Approximate as of
                                                                             Actual                                                      Pro Forma
                                                                             September 30,                 June 30,                      December 31,                  September 30,
                                                                             2008 (a)                      2008 (a)                      2007 (a)                      2007 (a)
Customer Summary:
Customer Relationships:
Residential (non-bulk) basic video customers (b)                                   4,860,100                     4,897,100                     4,958,600                     5,011,200
Multi-dwelling (bulk) and commercial unit customers (c)                            276,000                       264,900                       260,100                       273,900
Total basic video customers                                                        5,136,100                     5,162,000                     5,218,700                     5,285,100
Non-video customers (b)                                                            408,300                       395,600                       376,400                       361,300
Total customer relationships (d)                                                   5,544,400                     5,557,600                     5,595,100                     5,646,400
Pro forma average monthly revenue per basic video customer (e)               $     106.07                  $     104.35                  $     98.13                   $     95.45
Pro forma average monthly video revenue per basic video customer (f)         $     58.87                   $     58.73                   $     56.13                   $     55.25
Residential bundled customers (g)                                                  2,718,100                     2,639,000                     2,506,700                     2,433,400
Revenue Generating Units:
Basic video customers (b) (c)                                                      5,136,100                     5,162,000                     5,218,700                     5,285,100
Digital video customers (h)                                                        3,118,500                     3,056,900                     2,920,100                     2,860,500
Residential high-speed Internet customers (i)                                      2,858,200                     2,787,300                     2,682,300                     2,631,800
Telephone customers (j)                                                            1,274,300                     1,175,500                     959,300                       804,000
Total revenue generating units (k)                                                 12,387,100                    12,181,700                    11,780,400                    11,581,400
Video Cable Services:
Basic Video:
Estimated homes passed (l)                                                         11,932,800                    11,890,800                    11,741,500                    11,671,000
Basic video customers (b)(c)                                                       5,136,100                     5,162,000                     5,218,700                     5,285,100
Estimated penetration of basic homes passed (b) (c) (l) (m)                        43.0        %                 43.4        %                 44.4        %                 45.3        %
Pro forma basic video customers quarterly net loss (b) (c) (n)                     (25,900     )                 (44,800     )                 (66,400     )                 (38,700     )
Digital Video:
Digital video customers (h)                                                        3,118,500                     3,056,900                     2,920,100                     2,860,500
Digital penetration of basic video customers (b) (c) (h) (o)                       60.7        %                 59.2        %                 56.0        %                 54.1        %
Digital set-top terminals deployed                                                 4,504,800                     4,409,300                     4,192,700                     4,125,400
Pro forma digital video customers quarterly net gain (h) (n)                       61,600                        33,900                        59,600                        16,700
Non-Video Cable Services:
High-Speed Internet Services:
Estimated high-speed Internet homes passed (l)                                     11,245,600                    11,203,400                    11,051,400                    10,967,600
Residential high-speed Internet customers (i)                                      2,858,200                     2,787,300                     2,682,300                     2,631,800
Estimated penetration of high-speed Internet homes passed (i) (l) (m)              25.4        %                 24.9        %                 24.3        %                 24.0        %
Pro forma average monthly high-speed Internet revenue per high-speed         $     40.53                   $     40.67                   $     40.54                   $     40.58
Internet customer (f)
Pro forma high-speed Internet customers quarterly net gain (i) (n)                 70,900                        19,300                        50,500                        53,900
Telephone Services:
Estimated telephone homes passed (l)                                               10,236,000                    9,990,500                     9,013,900                     8,289,200
Telephone customers (j)                                                            1,274,300                     1,175,500                     959,300                       804,000
Estimated penetration of telephone homes passed (i) (l) (m)                        12.4        %                 11.8        %                 10.6        %                 9.7         %
Pro forma average monthly telephone revenue per telephone customer           $     40.67                   $     40.62                   $     41.74                   $     42.42
(f)
Pro forma telephone customers quarterly net gain (j) (n)                           98,800                        90,500                        155,300                       102,700
Pro forma operating statistics reflect the sales and acquisitions of
cable systems in 2007 and 2008 as if such transactions had occurred
as of the last day of the respective period for all periods
presented. The pro forma statements of operations do not include
adjustments for financing transactions completed by Charter during
the periods presented or certain other dispositions of assets
because those transactions did not significantly impact Charter's
adjusted EBITDA. However, all transactions completed in 2007 and
2008 have been reflected in the operating statistics.
At December 31, 2007 actual basic video customers, digital video
customers, high-speed Internet customers and telephone customers
were 5,219,900, 2,920,400, 2,682,500, and 959,300, respectively.
At September 30, 2007 actual basic video customers, digital video
customers, high-speed Internet customers and telephone customers
were 5,347,800, 2,882,900, 2,639,200, and 802,600, respectively.
See footnotes to unaudited summary of operating statistics on page 6
of this addendum.
(a) "Customers" include all persons our corporate billing records
show as receiving service (regardless of their payment status),
except for complimentary accounts (such as our employees). In
addition, at September 30, 2008, June 30, 2008, December 31, 2007,
and September 30, 2007, "customers"
include approximately 42,100, 34,200, 48,200, and 33,800 persons
whose accounts were over 60 days past due in payment, approximately
7,700, 5,300, 10,700, and 5,700 persons whose accounts were over 90
days past due in payment and approximately 3,800, 2,600, 2,900, and
2,100 of which were over 120 days past due in payment, respectively.
(b) "Basic video customers" include all residential customers who
receive video services (including those who also purchase high-speed
Internet and telephone services) but excludes approximately 408,300,
395,600, 376,400, and 361,300 customer relationships at September
30, 2008, June 30, 2008, December 31, 2007, and September 30, 2007,
respectively, who receive high-speed Internet service only,
telephone service only, or both high-speed Internet service and
telephone service and who are only counted as high-speed Internet
customers or telephone customers.
(c) Included within "basic video customers" are those in commercial
and multi-dwelling structures, which are calculated on an equivalent
bulk unit ("EBU")
basis. EBU is calculated for a system by dividing the bulk price
charged to accounts in an area by the most prevalent price charged
to non-bulk residential customers in that market for the comparable
tier of service. The EBU method of estimating basic video customers
is consistent with the methodology used in determining costs paid to
programmers and has been used consistently. As we increase our
effective video prices to residential customers without a
corresponding increase in the prices charged to commercial service
or multi-dwelling customers, our EBU count will decline even if
there is no real loss in commercial service or multi-dwelling
customers.
(d) "Customer relationships" include the number of customers that
receive one or more levels of service, encompassing video, Internet
and telephone services, without regard to which service(s) such
customers receive. This statistic is computed in accordance with the
guidelines of the National Cable & Telecommunications Association
(NCTA) that have been adopted by eleven publicly traded cable
operators, including Charter.
(e) "Pro forma average monthly revenue per basic video customer" is
calculated as total quarterly pro forma revenue divided by three
divided by average pro forma basic video customers during the
respective quarter.
(f) "Pro forma average monthly revenue per customer" represents
quarterly pro forma revenue for the service indicated divided by
three divided by the number of pro forma customers for the service
indicated during the respective quarter.
(g) "Residential bundled customers" include residential customers
receiving a combination of at least two different types of service,
including Charter's video service, high-speed Internet service or
telephone. "Residential bundled customers" do not include
residential customers who only subscribe to video service.
(h) "Digital video customers" include all basic video customers that
have one or more digital set-top boxes or cable cards deployed.
(i) "Residential high-speed Internet customers" represent those
residential customers who subscribe to our high-speed Internet
service. At September 30, 2008, June 30, 2008, December 31, 2007,
and September 30, 2007, approximately 2,559,700, 2,494,600,
2,392,700, and 2,343,700 of these high-speed Internet customers,
respectively, receive video and/or telephone services from us and
are included within the respective statistics above.
(j) "Telephone customers" include all customers receiving telephone
service. As of September 30, 2008, June 30, 2008, December 31, 2007,
and September 30, 2007, approximately 1,233,100, 1,133,800, 920,600,
and 769,800 of these telephone customers, respectively, receive
video and/or high-speed Internet services from us and are included
within the respective statistics above.
(k) "Revenue generating units" represent the sum total of all basic
video, digital video, high-speed Internet and telephone customers,
not counting additional outlets within one household. For example, a
customer who receives two types of service (such as basic video and
digital video) would be treated as two revenue generating units, and
if that customer added on high-speed Internet service, the customer
would be treated as three revenue generating units. This statistic
is computed in accordance with the guidelines of the NCTA that have
been adopted by eleven publicly traded cable operators, including
Charter.
(l) "Homes passed" represent our estimate of the number of living
units, such as single family homes, apartment units and condominium
units passed by our cable distribution network in the areas where we
offer the service indicated. "Homes passed" exclude commercial units
passed by our cable distribution network. These estimates are
updated for all periods presented when estimates change.
(m) "Penetration" represents customers as a percentage of homes
passed for the service indicated.
(n) "Pro forma quarterly net gain (loss)" represents the pro forma
net gain or loss in the respective quarter for the service indicated.
(o) "Digital penetration of basic video customers" represents the
number of digital video customers as a percentage of basic video
customers.
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
UNAUDITED RECONCILIATION OF NON-GAAP MEASURES TO GAAP MEASURES
(DOLLARS IN MILLIONS)
                                                                         Three Months Ended September 30,
                                                                         2008                        2007                        2007
                                                                         Actual                      Actual                      Pro Forma (a)
Net cash flows from operating activities                                 $      242                  $      209                  $      207
Less: Purchases of property, plant and equipment                                (288   )                    (311   )                    (311   )
Less: Change in accrued expenses related to capital expenditures                -                           (12    )                    (12    )
Free cash flow                                                                  (46    )                    (114   )                    (116   )
Interest on cash pay obligations (b)                                            462                         449                         449
Purchases of property, plant and equipment                                      288                         311                         311
Change in accrued expenses related to capital expenditures                      -                           12                          12
Other, net                                                                      13                          6                           6
Change in operating assets and liabilities                                      (154   )                    (154   )                    (154   )
Adjusted EBITDA (c)                                                      $      563                  $      510                  $      508
                                                                         Nine Months Ended September 30,
                                                                         2008                        2007                        2007
                                                                         Actual                      Actual                      Pro Forma (a)
Net cash flows from operating activities                                 $      410                  $      327                  $      319
Less: Purchases of property, plant and equipment                                (938   )                    (890   )                    (890   )
Less: Change in accrued expenses related to capital expenditures                (41    )                    (51    )                    (51    )
Free cash flow                                                                  (569   )                    (614   )                    (622   )
Interest on cash pay obligations (b)                                            1,374                       1,354                       1,354
Purchases of property, plant and equipment                                      938                         890                         890
Change in accrued expenses related to capital expenditures                      41                          51                          51
Other, net                                                                      48                          26                          26
Change in operating assets and liabilities                                      (133   )                    (161   )                    (161   )
Adjusted EBITDA (c)                                                      $      1,699                $      1,546                $      1,538
(a) Pro forma results reflect certain sales and acquisitions of
cable systems in 2007 as if they occurred as of January 1, 2007.
(b) Interest on cash pay obligations excludes accretion of original
issue discounts on certain debt securities and amortization of
deferred financing costs that are reflected as interest expense in
our consolidated statements of operations.
(c) See page 1 of this addendum for detail of the components
included within adjusted EBITDA.
The above schedules are presented in order to reconcile adjusted
EBITDA and free cash flows, both non-GAAP measures, to the most
directly comparable GAAP measures in accordance with Section 401(b)
of the Sarbanes-Oxley Act.
CHARTER COMMUNICATIONS, INC. AND SUBSIDIARIES
CAPITAL EXPENDITURES
(DOLLARS IN MILLIONS)
                                              Three Months Ended                        Nine Months Ended
                                              September 30,                             September 30,
                                              2008                 2007                 2008                 2007
Customer premise equipment (a)         $      157           $      139           $      480           $      428
Scalable infrastructure (b)                   52                   64                   185                  164
Line extensions (c)                           19                   27                   63                   76
Upgrade/Rebuild (d)                           8                    11                   37                   35
Support capital (e)                           52                   70                   173                  187
Total capital expenditures             $      288           $      311           $      938           $      890
(a) Customer premise equipment includes costs incurred at the
customer residence to secure new customers, revenue units and
additional bandwidth revenues. It also includes customer
installation costs in accordance with SFAS No. 51 and customer
premise equipment (e.g., set-top boxes and cable modems, etc.).
(b) Scalable infrastructure includes costs, not related to customer
premise equipment or our network, to secure growth of new customers,
revenue units and additional bandwidth revenues or provide service
enhancements (e.g., headend equipment).
(c) Line extensions include network costs associated with entering
new service areas (e.g., fiber/coaxial cable, amplifiers, electronic
equipment, make-ready and design engineering).
(d) Upgrade/rebuild includes costs to modify or replace existing
fiber/coaxial cable networks, including betterments.
(e) Support capital includes costs associated with the replacement
or enhancement of non-network assets due to technological and
physical obsolescence (e.g., non-network equipment, land, buildings
and vehicles).

SOURCE: Charter Communications, Inc.

Charter Communications, Inc. 
Media: 
Anita Lamont, 314-543-2215 
or 
Analysts: 
Mary Jo Moehle, 314-543-2397

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Companies: Charter Communications, Inc. (CHTR)

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Interwoven Challenges Developers to Transform Web Experience - Zibb.com

Interwoven, Inc. (Nasdaq: IWOV), a global leader in content management solutions, today announced the TeamSite SitePublisher Component Contest, challenging members of Interwoven's developer community, DevNet, to build creative, flexible, and reusable Website components. The contest invites members of DevNet - which now numbers over 25,000 - the opportunity to leverage the simplicity and flexibility of the TeamSite SitePublisher framework to create new components. With this framework, developers can rapidly create and publish an unlimited number of Website components - including widgets for social media applications, rich media applications, and new forms of navigation.

(Logo: http://www.newscom.com/cgi-bin/prnh/20071205/INTWOVLOGO)

Contest entries must provide marketing professionals with Website functionality that can be reused across a myriad of Web properties. The entries will deliver a more interactive and engaging online visitor experience - which may include areas such as social media, user-generated content, Web page design elements, and cross-platform integration.

The TeamSite SitePublisher Component Contest is open to participants with a valid Interwoven Support Site account. The contest entry deadline is December 18, 2008. After that time, judges - comprised of Interwoven engineers, customer support, product management, and marketing - will assess each component entry based on its impact to online business, flexibility within a Website, and the ability to be reused across multiple Web pages and sites. Winners will be announced in January 2009, and the grand prize winner will receive two round-trip airline tickets to their destination of choice anywhere in the world. For more information or to enter, visit http://www.interwoven.com/component_contest

"We've dramatically enhanced TeamSite SitePublisher, and this contest gives our developer community - a passionate and innovative group - a chance to kick the tires and show what this product can do," said Todd Scallan, vice president of product management at Interwoven. "Our customers have already used our software to design a host of creative components through Interwoven's customizable and flexible framework, and we're eager to see the creative new Website applications they dream up."

Interwoven DevNet - A Vibrant Community

Launched in 2001, Interwoven's DevNet was created to help the global community of Interwoven developers exchange ideas with community peers, showcase skills, and gather new techniques and best practices to enhance their own Websites. DevNet members also collaborate to create application mashups that combine the functionality of multiple components. The new components created as a result of the contest will be made available on DevNet for other Interwoven customers.

"As an Interwoven partner, the DevNet community provides an unmatched resource to exchange ideas, functionality, and best practices," said Bill Klish, president of Klish Group Inc., a technology services and solutions company, who has been a DevNet member since 2002. "We are always looking for innovative ways to deliver sophisticated Websites on time, on budget, on brand, and beyond the expectations of our customers. This contest will certainly yield some powerful new components which will enable cutting-edge Web 2.0 applications."

To hear more from Bill Klish on the value DevNet provides to Interwoven developers, please download his podcast at: http://www.podworx.com/preview/Interwoven.cfm.

Quick and Easy Website Creation with Interwoven TeamSite

Interwoven TeamSite 6.7.2, which was made generally available in early September, includes several innovations designed to help marketers more rapidly create a compelling online presence, including:

    *  More than 90 new, out-of-the-box TeamSite SitePublisher Website
       building blocks that empower marketers to swiftly construct landing
      pages, micro-sites, and entire Websites, including:
         o Social Computing Components to implement ratings, polling, RSS, and
           other feedback mechanisms to better engage with online customers;
         o Digital Asset Components to enrich Websites with engaging image
           slideshows, photo galleries or Adobe Flash;
         o Marketing Components to accelerate the assembly of critical
           campaign elements like advertisements, promotions, product
           descriptions, and custom forms; and
         o Page Element Components to easily add essential page content and
           design, such as registration, headers, footers, and navigation.
    *  New TeamSite SitePublisher fixed area layout capabilities give
       marketers
       the freedom and flexibility to create Websites, while allowing IT to
       maintain control over the page template.
    *  A refreshed tag interface that automatically applies metadata keywords
       to multiple Web assets in a single step, increasing productivity while
       maintaining consistency and accuracy for search engine optimization and
       dynamic targeting.
    *  Enhanced invisible content management capabilities that allow marketers
       to contribute content to the Web directly from tools like Microsoft
       Office.
    *  Improved performance capabilities and updated platform and browser
       support.


A series of Webcasts and demonstrations about the new capabilities of TeamSite 6.7.2 and LiveSite 3.1 can be viewed at http://www.interwoven.com/innovations.

About Interwoven

Interwoven, Inc. (NASDAQ: IWOV) is a global leader in content management solutions. Interwoven's software and services enable organizations to maximize online business performance and organize, find, and govern business content. Interwoven solutions unlock the value of content by delivering the right content to the right person in the right context at the right time. Over 4,600 of the world's leading companies, professional services firms, and governments have chosen Interwoven, including adidas, Airbus, Amnesty International USA, Avaya, BT, Cisco, Citi, Delta Air Lines, DLA Piper, FedEx, Grant Thornton, Hilton Hotels, HKMP LLP, Hong Kong Trade and Development Council, HSBC, LexisNexis, MasterCard, Microsoft, Samsung, Shell, Sky Italia, Qantas Airways, Tesco, Virgin Mobile, and White & Case. A community of over 25,000 developers and over 300 partners enrich and extend Interwoven's offerings. To learn more about Interwoven, please visit http://www.interwoven.com.

SOURCE Interwoven, Inc.

http://www.interwoven.com

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Companies: Interwoven, Inc. (IWOV)

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Broadcom's New Digital TV Solutions Bring Advanced Functionality and Differentiated Features to TV

Broadcom Corporation (Nasdaq: BRCM), a global leader in semiconductors for wired and wireless communications, today announced its next generation of digital television (DTV) system-on-a chip (SoC) solutions that bring advanced functionality and differentiated features to DTV designs to address the U.S. market. Featuring expandable entry-level to high-end design capabilities, the new SoC solutions enable TV manufacturers to enhance the DTV from a commodity display device to a highly differentiated, connected entertainment system. Included in each of these single-chip solutions are an advanced multi-format decoder, Ethernet network connectivity, a 3D graphical user interface, and unique 3D color management, all of which continue to position the TV as the central entertainment appliance for the digital home.

To provide TV manufacturers with the most advanced technology for the growing digital TV market, the company today announced the Broadcom(R) BCM3548 and BCM3549 single-chip DTV solutions that leverage the advanced design of the Broadcom BCM3556 DTV solution that includes support for digital video broadcast (DVB)-based platforms to address European and Asian markets. These three highly integrated single-chip SoC solutions allow TV manufacturers to offer their customers a variety of the latest features and interactivity. All three chips provide advanced multi-format decoding in support of high definition AVC, H.264, VC-1, AVS and MPEG-2 streams. By supporting H.264, the latest video compression standard, the BCM3548 and BCM3549 enable users to view multimedia and HD content from networked devices, with improved picture quality.

The BCM3548 and BCM3549 each integrates a host of unique features that allow TV manufacturers to create differentiated products, and when combined with improved picture quality, will enrich the consumers' DTV experience. One such feature is a 3D graphics core that provides consumers with a graphical user interface for flipping, rotating, moving or manipulating images, and enables OEMs to create specialized user interfaces that differentiates the TV from traditional flat, two dimensional user interfaces.

Each of the BCM3548 and BCM3549 also includes home network connectivity via integrated Ethernet media access controller (MAC) and physical layer (PHY) capabilities that enable users to connect with multiple home networking devices such as media servers, PCs, MP3 devices and portable media players (PMPs), and allow access to the magnitude of Internet-based multimedia content. As a result, users can share and stream music, photos, movies and Internet-based media content to and from connected devices and TVs. A high- powered CPU featuring a MIPS(R) dual core processor is also featured in each new SoC to provide consumers with a fast and responsive 3D graphical user interface and allow TV manufacturers to add additional compute intensive product differentiating applications.

The BCM3548 supports WXGA display resolutions while the BCM3549 supports the full 1080p high definition resolution, and each incorporates a unique 3D color management system, as well as digital, analog and mosquito noise reduction. Also integrated is an advanced picture enhancement processor (PEP) to improve picture sharpness and perform picture post-processing functions. The PEP engine is fully programmable and can be optimized by TV manufacturers to meet their respective quality requirements. As a result, the BCM3548 and BCM3549 enable TV manufacturers with better video quality, sharper images and more accurate color reproduction.

"Broadcom's new DTV solutions provide viewers with better picture quality, Internet connectivity and a 3D user interface," said Dan Marotta, Senior Vice President & General Manager of Broadcom's Broadband Communications Group. "By providing our DTV design partners with differentiated features, they, in turn, can offer consumers digital television solutions that have access to content from the broadcasters, the Internet and the consumers' own home networks."

Technical Information

The BCM3548 and BCM3549 are Broadcom's next generation DTV SoCs that feature advanced video decoders, 3D/2D graphics cores, Ethernet MAC and PHYs, and support for wide screen applications. These features, combined with a high level of integration and best-in-class picture quality, will greatly enhance the DTV experience and enable TV manufacturers to reduce overall system cost and improve picture quality, all with a single SoC. Additional features offered in each chip include:

    * Advanced multi-format decoder supporting the following:
      o H.264/AVC Main and High Profile to Level 4.1 (HD), Level 3.1 (SD) -
        HD/SD AVS Jizhun Profile Levels 2.0, 4.0, and 6.0
      o VC-1 Advanced Profile @ Level 3, Simple and Main Profiles
      o HD/SD MPEG-2 Main Profile at Main and High levels
      o MPEG still image decode
      o HD DivX(R) 3.11/4.11/5.x/6x/Home Theater
    * 3D/2D OpenGL(R) ES 1.0-compliant graphics core
    * Ethernet MAC and PHY
    * Integrated video processing:
      o 3D color management
      o Digital, analog and mosquito noise reduction
      o 1080i motion adaptive de-interlacing with 3:2/2:2 pull-down
      o True 10-bit video carried through system
    * Extensive audio support:
      o AAC LC, AAC LC+SBR Level 2, AAC+ Level 2, AAC-HE
      o Dolby(R) Digital, Dolby Digital Plus, TruSurround XT(R)
      o MPEG 1 Layers 1, 2, and 3 (MP3)
      o Windows Media(R) and Windows Media Pro audio
      o Audio DACs, input switch and equalizer
      o Dolby Digital, TruSurround XT, MPEG Audio Decoder
    * NTSC/PAL decoder with a 3D/2D comb
    * 400-MHz dual core CMT MIPS32(R)/MIPS16e(TM) class processor
    * Integrated NTSC demodulator, ATSC/QAM receivers, and dual-link LVDS
      transmitters
    * Dual HDMI 1.3a receivers
    * Dual USB 2.0


Availability and Pricing

The BCM3548 and BCM3549 digital TV SoC solutions are now sampling to early access customers. Pricing is available upon request for manufacturers of digital televisions.

About Broadcom's Broadband Communications Group

Broadcom offers manufacturers a range of broadband communications and consumer electronics system-on-a-chip solutions that enable voice, video, data and multimedia services over residential wired and wireless networks. These highly integrated silicon solutions continue to enable the most advanced system solutions on the market, which include digital cable, satellite and IP set-top boxes and media servers, broadband modems and residential gateways,

high definition and digital televisions, Blu-ray Disc(R) players and recorders and personal video recorders and media PC technology.

About Broadcom

Broadcom Corporation is a major technology innovator and global leader in semiconductors for wired and wireless communications. Broadcom products enable the delivery of voice, video, data and multimedia to and throughout the home, the office and the mobile environment. We provide the industry's broadest portfolio of state-of-the-art system-on-a-chip and software solutions to manufacturers of computing and networking equipment, digital entertainment and broadband access products, and mobile devices. These solutions support our core mission: Connecting everything(R).

Broadcom is one of the world's largest fabless semiconductor companies, with 2007 revenue of $3.78 billion, and holds over 2,800 U.S. and 1,200 foreign patents, more than 7,300 additional pending patent applications, and one of the broadest intellectual property portfolios addressing both wired and wireless transmission of voice, video, data and multimedia.

Broadcom is headquartered in Irvine, Calif., and has offices and research facilities in North America, Asia and Europe. Broadcom may be contacted at +1.949.926.5000 or at http://www.broadcom.com.

Cautions regarding Forward Looking Statements:

All statements included or incorporated by reference in this release, other than statements or characterizations of historical fact, are forward- looking statements. These forward-looking statements are based on our current expectations, estimates and projections about our industry and business, management's beliefs, and certain assumptions made by us, all of which are subject to change. Forward-looking statements can often be identified by words such as "anticipates," "expects," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "potential," "continue," "ongoing," similar expressions, and variations or negatives of these words. Examples of such forward-looking statements include, but are not limited to the ability of our digital television decoder product to enable DTV design partners with to offer consumers digital television solutions that have access to multiple forms of content. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause our actual results to differ materially and adversely from those expressed in any forward-looking statement.

Important factors that may cause such a difference for Broadcom in connection with BCM3548 and BCM3549 DTV decoder products include, but are not limited to

    * our ability to timely and accurately predict market requirements and
      evolving industry standards and to identify opportunities in new
      markets;
    * the rate at which our present and future customers and end-users adopt
      Broadcom's technologies and products in the markets for next generation
      DTV, PC, cable, satellite, IPTV and terrestrial set-top box
      applications;
    * delays in the adoption and acceptance of industry standards in those
      markets;
    * general economic and political conditions and specific conditions in the
      markets we address, including the volatility in the technology sector
      and semiconductor industry, trends in the broadband communications
      markets in various geographic regions, including seasonality in sales of
      consumer products into which our products are incorporated, and possible
      disruption in commercial activities related to terrorist activity or
      armed conflict in the United States and other locations;
    * the timing, rescheduling or cancellation of significant customer orders
      and our ability, as well as the ability of our customers, to manage
      inventory;
    * the gain or loss of a key customer, design win or order;


Additional factors that may cause Broadcom's actual results to differ materially from those expressed in forward-looking statements include, but are not limited to the list that can be found at http://www.broadcom.com/press/additional_risk_factors/Q32008.php.

Our Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q, recent Current Reports on Form 8-K, and other Securities and Exchange Commission filings discuss the foregoing risks as well as other important risk factors that could contribute to such differences or otherwise affect our business, results of operations and financial condition. The forward-looking statements in this release speak only as of this date. We undertake no obligation to revise or update publicly any forward-looking statement, except as required by law.

Broadcom(R), the pulse logo, Connecting everything(R), and the Connecting everything logo are among the trademarks of Broadcom Corporation and/or its affiliates in the United States, certain other countries and/or the EU. Blu-ray Disc(R) is a trademark of Sony Corporation. DivX(R) is a trademark of DivX, Inc. Dolby(R) is a trademark of Dolby Laboratories Licensing Corporation. MIPS(R), MIPS32(R) and MIPS16(TM) are trademarks of MIPS Technology, Inc. OpenGLA' ES is a trademark of Silicon Graphics, Inc. TruSurround XT(R) is a trademark of SRS Labs Inc. Windows Media(R) is a trademark of Microsoft Corporation. Any other trademarks or trade names mentioned are the property of their respective owners.

     Broadcom Trade Press Contact
     Laura Brandlin
     Senior Director, Marketing Communications
     949-926-5108
     lbrandlin@broadcom.com

     Broadcom Investor Relations Contact
     T. Peter Andrew
     Vice President, Corporate Communications
     949-926-5663
     andrewtp@broadcom.com

SOURCE Broadcom Corporation; BRCM Broadband

http://www.broadcom.com

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