Atheros
Announces Financial Results for Q1 2008
Twelfth
Consecutive Quarter of Revenue Growth
Santa
Clara, Calif. – April 28, 2008 – Atheros
Communications, Inc. (NASDAQ: ATHR), a leading developer
of advanced wireless and wired network communications
solutions, today announced financial results for its
first quarter ended March 31, 2008.
Revenue in the first quarter was a
record $114.5 million, compared with $114.3 million
reported in the fourth quarter of 2007 and $95.5 million
reported in the first quarter of 2007.
In accordance with U.S. generally
accepted accounting principles (GAAP), the company
recorded first quarter net income of $3.4 million or
$0.06 per diluted share. This compares with GAAP net
income of $13.4 million or $0.22 per diluted share in
the fourth quarter of 2007. Net income in the first
quarter of 2007 was $7.6 million or $0.13 per diluted
share. Total cash, cash equivalents and marketable
securities were $255.6 million at March 31, 2008, up
$5.6 million from the prior quarter.
Atheros reports gross margins,
operating expenses, operating income, net income and
basic and diluted net income per share in accordance
with GAAP and additionally on a non-GAAP basis. Non-GAAP
net income excludes, where applicable, the effect of
stock-based compensation, amortization of acquired
intangible assets and acquisition related charges, the
other-than-temporary impairment of long-term investments
and the tax impact of these excluded items. A
reconciliation of preliminary GAAP to non-GAAP net
income, as well as a description of items excluded in
the calculation of non-GAAP net income is presented in
the financial statements portion of this release.
Non-GAAP gross margins in the first
quarter were 51.2 percent, compared with 52.3 percent in
the fourth quarter of 2007 and 48.0 percent in the first
quarter of 2007. Non-GAAP operating income was 15.3
percent of revenue, compared with 19.0 percent in the
fourth quarter of 2007 and 14.5 percent in the first
quarter of 2007.
Non-GAAP net income in the first
quarter was $17.2 million or $0.28 per diluted share,
compared with $21.4 million or $0.36 per diluted share
in the fourth quarter of 2007 and $13.6 million or $0.23
per diluted share in the first quarter of 2007.
“We are pleased to report our
twelfth consecutive quarter of revenue growth. Revenue
from our networking customers was particularly strong in
the first quarter, due primarily to the continued
adoption of our 802.11n WLAN products by retail and
carrier customers,” said Craig Barratt, president and
CEO.
“Revenue from our consumer business
grew significantly in the first quarter, as we recorded
initial revenue from our ROCm® GPS products. We
continue diversifying our revenue sources and expanding
our customer base in a variety of markets,” Dr. Barratt
said.
“Today we announced a new member of
our ROCm family of GPS solutions, a hardware and
software GPS combination that targets mobile phones,
Personal Navigation Devices (PNDs) and Personal Media
Players (PMPs). This solution consists of our
second-generation, single-chip GPS receiver, the AR1511,
and companion ORION 3.0 software suite, providing
leading performance and features for our customers,” he
said.
Recent
Atheros Highlights:
-
April 28 – Atheros Enhances GPS
User Experience with Advanced Navigation and Low
Power in Handsets, PNDs and PMPs
-
April 8 - Atheros Announces
Christine King as New Board Member
-
April 8 - Wi-Fi Alliance®
Welcomes Atheros Communications as New Sponsor
Member
-
March 17 – Infineon and Atheros
Announce Lowest-Cost Mobile Phone Platform for
Internet-Based Telephony
-
Feb 11 - Atheros Brings
Wireless Connectivity to Next-Generation
Entertainment-Rich Smartphones
-
Feb 6 - Atheros ROCm Technology
Provides Wi-Fi Connectivity in Z-Com’s Wireless VoIP
Phones
Conference
Call
Atheros will broadcast its first
quarter financial results conference call today, Monday,
April 28, 2008 at 2 p.m. Pacific time (5 p.m. Eastern
time).
To listen to the call, please dial
(210) 234-0000 approximately 10 minutes prior to the
start time. The pass code is Atheros. A taped replay
will be available approximately one hour after the
conclusion of the call and will remain available for one
week. To access the replay, dial (203) 369-3489.
The Atheros financial results
conference call will be available via a live webcast on
the investor relations section of the Atheros website at
www.atheros.com.
Please access the website approximately 15 minutes prior
to the start of the call to download and install any
necessary audio software. An archived webcast replay of
the call will be available on the web site for one year.
About
Atheros Communications, Inc.
Atheros Communications is a leading
developer of semiconductor system solutions for wireless
and wired communications products. Atheros combines its
wireless and networking systems expertise with
high-performance radio frequency (RF), mixed signal and
digital semiconductor design skills to provide highly
integrated chipsets that are manufactured on low-cost,
standard complementary metal-oxide semiconductor (CMOS)
processes. Atheros technology is used by a broad base of
leading customers, including personal computer,
networking equipment and consumer device manufacturers.
For more information, please visit
www.atheros.com or
send email to
info@atheros.com.
NOTE: Atheros, the
Atheros logo and ROCm are trademarks of Atheros
Communications, Inc.
Note on
Forward-Looking Statements
Except for the
historical information contained herein, the matters set
forth in this press release, including the anticipated
continued diversification of our revenue sources and
expansion of our customer base, are forward-looking
statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking
statements are subject to risks and uncertainties that
could cause actual results to differ materially,
including, but not limited to the impacts of
competition, technological advances; general economic
conditions; difficulties in the development of new
products and technologies; whether Atheros is successful
in marketing and selling its products; and other risks
detailed in Atheros’ Annual Report on Form 10-K for the
year ended December 31, 2007, as filed with the
Securities and Exchange Commission, and in other reports
filed with the SEC by Atheros from time to time. These
forward-looking statements speak only as of the date
hereof. Atheros disclaims any obligation to update
these forward-looking statements.
– Summary Financial Data PDF Link –
For
analyst inquires contact: Jack Lazar,
Chief Financial Officer for Atheros Communications, Inc., +1-408-773-5200; or Deborah Stapleton of Stapleton Communications, Inc.,
+1-650-470-0200, for Atheros
Dakota Lee, 408-720-5597,
dakota@atheros.com, or Greg Wood, A&R Edelman for
Atheros , 650-762-2838,
gwood@ar-edelman.com
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