Atheros Communications
Introduces First Single-Chip Cellular Solution
Wireless Technology Leader Produces
World’s Most Integrated Chip for Handsets in Record Time
SUNNYVALE, Calif., March 21, 2005—Atheros
Communications, Inc. (NASDAQ: ATHR), a leading developer of advanced wireless
solutions, today announced the company’s first cellular solution, the Atheros
AR1900. In a single chip, the AR1900 implements a complete cellular transceiver,
baseband, application processor, audio paths, power management, and keypad,
display and USB interfaces. Through this high level of integration coupled with
the addition of new industry leading features, the AR1900 enables
industry-leading performance at a price that is designed to fuel further market
growth. The AR1900 is the first product to leverage a platform of innovative
technologies developed by Atheros over the last year, including audio, voice,
low-power battery operation and novel RF architectures.
The AR1900 is the world’s first single-chip solution for PHS (Personal
Handyphone System), which is widely deployed in China, Japan, Taiwan and other
countries. PHS, or Personal Access System (PAS) as it is known in China, is an
advanced digital TDMA-TDD technology operating at 1.9 GHz providing high-quality
voice, advanced data services, and long battery life. The growth of PHS in China
has been driven by its favorable infrastructure cost and voice tariff structure,
which is less than half that of other cellular technologies. Forward Concepts
estimates that shipments of PHS/PAS handsets to the China market grew an
estimated 90% in 2004 to 30.8 million units and predicts that market to grow by
another 70% in 2005 to 50 million units.
“PHS has experienced remarkable growth in China since its introduction in the
late 1990’s and accounted for almost 20% of the cellular market in 2004 or over
68 million subscribers,” said Will Strauss, president of Forward Concepts. “We
anticipate the market to continue its strong growth trend and expect low-cost,
high-performance solutions, such as that offered by Atheros, to further fuel
adoption.”
“We have expanded our core competencies to include audio, voice and power
management,” said Craig Barratt, president and chief executive officer of
Atheros Communications. “We can now deliver solutions for broader handheld and
voice markets, with PHS as the first target. These capabilities, combined with
our world-class digital CMOS Radio-on-a-Chip (RoC) expertise, enable us to bring
to market the most highly integrated, low power, and cost-effective wireless
solutions – within the shortest design cycle.
The AR1900 integrates a complete handset solution, including 1.9 GHz
transceiver, baseband, protocol control block, application processor, voice
coder and analog paths, polyphonic ring-tone generator, power management, and
LCD, keypad and USB interfaces, into a single piece of silicon. It is
implemented in a standard digital CMOS process; the innovative single-chip
design reduces the cost of PHS handsets by 30 percent compared to multiple chip
solutions.
The AR1900 boasts several technology innovations
for PHS. Its state-of-the-art fractional-N synthesizer allows for seamless
handover between base stations. It supports the PIAFS mode of operation, which
allows for data transfer at 64 kbps. The AR1900 also supports connection to up
to three other PHS devices, allowing it to be used for indoor infrastructure
equipment. It implements aggressive clock gating and other power reduction
features to maximize battery life.
The AR1900 is the
latest in a string of Atheros accomplishments in single-chip integration
achieved through its RoC methodology. Atheros introduced the world's first
single-chip 802.11g client solution in January 2004, the world's first
single-chip 802.11a/b/g client solution in October 2004, and the world's first
single-chip 802.11g access point solution in December 2004. The AR1900 brings
Atheros advantages in system performance, cost and integration, and power
consumption to the cellular market.
Conference Call
Management will host a conference call today at 1:30 p.m. Pacific time to
discuss today’s product announcement. To listen to the call, dial (212)
287-1615 ten minutes prior to the start of the call. The pass code is Atheros.
A taped replay will be made available approximately one hour after the
conclusion of the call and will remain available for one week. To access the
replay, dial (203) 369-1145.
The conference call will be available via a live webcast on the investor
relations section of the Atheros web site at http://www.atheros.com. Access the
web site 15 minutes prior to the start of the call to download and install any
necessary audio software.
About Atheros Communications, Inc.
Atheros Communications is a leading developer of
semiconductor system solutions for wireless communications products. Atheros
combines its wireless systems expertise with high-performance radio frequency
(RF), mixed signal and digital semiconductor design skills to provide highly
integrated chipsets that are manufacturable on low-cost, standard complementary
metal-oxide semiconductor (CMOS) processes. Atheros technology is being used by
a broad base of leading customers, including personal computer and networking
equipment manufacturers. For more information, visit
www.atheros.com or send email to
info@atheros.com.
# # #
Atheros and the Atheros logo are trademarks
of Atheros Communications, Inc. All other trademarks mentioned in this document
are the sole property of their respective owners.
FORWARD-LOOKING STATEMENTS:
Except for the historical information
contained herein, the matters set forth in this press release, including the
features, performance and benefits of Atheros’ AR1900 chip; the ability of the
pricing of the AR1900 chip to fuel growth in the PHS market; the timing of
production and shipment of the AR1900 chip; the ability of Atheros to use its
expertise in various areas, including audio, voice and power management, and
CMOS RoC design, to bring to market new wireless solutions on a competitive and
timely basis and the application of this expertise to wireless markets other
than WLAN; and the anticipated growth of the PHS market in China and elsewhere,
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 impact of competitive products and
technological advances; unforeseen defects in the AR1900 chip that may be
discovered upon volume production and broad deployment; manufacturing
difficulties; difficulties in development of enhanced and new products; Atheros’
ability to market its products and ship in volume; Atheros’ lack of experience
in markets other than WLAN; general economic conditions, particularly in China;
whether PHS succeeds as a cellular technology in China; the effects of
regulation of the cellular market in China; and other risks detailed in Atheros’
Annual Report on Form 10-K for the year ended December 31, 2004 as filed with
the SEC, 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.
Cheryl Patstone, 408-773-5344, cheryl@atheros.com,
or Greg Wood, A&R Partners, 650-762-2838,
gwood@arpartners.com,
For analyst contact: Deborah Stapleton, Investor
Relations for Atheros, 650-470-0200,
deb@stapleton.com
