Broadcom founders named in case
Federal prosecutors on Thursday identified Broadcom Corp. founders Henry T. Nicholas III and Henry Samueli as “unindicted potential co-conspirators” in an investigation into the illegal backdating of stock options.
In previous court papers, federal prosecutors had referred to them only as Executive A and Executive B, though The Times has identified them by name in prior reports.
Official recognition came as former human resources executive Nancy Tullos pleaded guilty in Santa Ana to one count of obstruction of justice. Tullos agreed to the plea late last year in exchange for her cooperation.
In court, federal prosecutors didn’t want to divulge the names of Nicholas and Samueli, saying that because they hadn’t been indicted, identifying them would create prejudice against them.
But U.S. District Judge Cormac J. Carney told prosecutors that not identifying them would undermine the factual basis of the plea and violate the principles of open court hearings.
Nicholas, who was Broadcom’s chief executive, quit in 2003, saying he wanted to save his faltering marriage. But a divorce nevertheless is pending.
Samueli, who owns the Anaheim Ducks professional hockey team, remains Broadcom’s chairman.
Meanwhile, the Irvine maker of chips for wireless and computer products said Thursday that fourth-quarter profit doubled. It forecast sales for the current period that beat some analysts’ estimates, sending the shares up 13%.
Net income climbed to $90.3 million, or 16 cents a share, from $45.1 million, or 8 cents, a year earlier. Sales rose 11% to $1.03 billion.
Growing demand for chips used in large flat-screen TVs boosted revenue.
Broadcom shares jumped $2.98 to $25.46 in extended trading after climbing $1.30 to $22.48.
The company forecast sales for the current quarter of $975 million to $1.01 billion. Analysts in a Bloomberg survey had predicted, on average, $995.3 million.
Some of those estimates didn’t include an anticipated royalty payment from Verizon Wireless, which Broadcom said added $31.8 million to its fourth-quarter revenue.
