• Net revenue up 7 percent sequentially to $456 million
• GAAP gross margin increased to 42.5 percent; Non-GAAP gross margin up to 45.8 percent

SAN JOSE, Calif., & SINGAPORE — (BUSINESS WIRE) — February 24, 2010 — Avago Technologies Limited (Nasdaq: AVGO), a leading designer, developer and global supplier of a broad range of analog semiconductor devices with a focus on III-V based products, today reported financial results for its first quarter fiscal year 2010, ended January 31, 2010, and provided guidance for the second quarter fiscal year 2010.

First Quarter Fiscal Year 2010 GAAP Results

Net revenue was $456 million, an increase of 7 percent compared with the previous quarter, and up 24 percent from the same quarter last year.

Gross margin was $194 million, or 42.5 percent of net revenue. First quarter gross margin compares with gross margin of $178 million, or 41.6 percent of net revenue last quarter, and gross margin of $143 million, or 38.9 percent of net revenue in the same quarter last year.

First quarter net income was $38 million, or $0.16 per diluted share. This result includes a $24 million loss on extinguishment of debt. This compares with a net loss of $21 million, or ($0.09) per diluted share last quarter, and net income of $6 million, or $0.03 per diluted share in the same quarter last year.

The Company’s cash balance at the end of the first quarter was $144 million, compared to $472 million at the end of the prior quarter. Changes in cash over the quarter include $41 million of cash generated from operations and $364 million used to redeem a significant portion of the Company’s debt in December 2009.

First Quarter Fiscal Year 2010 Non-GAAP Results

Gross margin was $209 million, or 45.8 percent of net revenue. This compares with gross margin of $192 million, or 44.9 percent of net revenue last quarter, and gross margin of $164 million, or 44.6 percent of net revenue in the same quarter last year.

Net income was $88 million, or $0.36 per diluted share. This compares with net income of $72 million, or $0.29 per diluted share last quarter, and net income of $37 million, or $0.17 per diluted share in the same quarter last year.

Adjusted EBITDA, as defined in the indenture governing the Company’s remaining outstanding debt securities, was $122 million, compared with $111 million last quarter and $81 million in the same quarter last year.

First Quarter Fiscal Year 2010 Non-GAAP Results

Change

(Dollars in millions, except EPS)

Q1 10

Q4 09

Q1 09

Q/Q

Y/Y

Net Revenue

$456

$428

$368

+7%

+24%

Gross Margin

45.8%

44.9%

44.6%

+90bps

+120bps

Operating Expenses

$105

$103

$102

+$2

+$3

Net Income

$88

$72

$37

+$16

+$51

Earnings Per Share - Diluted

$0.36

$0.29

$0.17

+$0.07

+$0.19

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