Atheros Announces Financial
Results for Q1 2007
Eighth Consecutive Quarter of Record Revenue
Santa Clara, Calif. – April 30, 2007 – Atheros Communications,
Inc. (NASDAQ: ATHR), a leading developer of advanced wireless solutions,
today announced financial results for the first quarter of 2007, ended March
31, 2007.
Revenue in the first quarter was $95.5 million, up nine percent from the
$87.8 million reported in the fourth quarter of 2006 and up 56 percent from
the $61.1 million reported in the first quarter of 2006.
In accordance with U.S. generally accepted accounting principles (GAAP), the
company recorded first quarter net income of $7.6 million or $0.13 per
diluted share. This compares with a GAAP net loss of $1.2 million or a loss
of $0.02 per diluted share in the fourth quarter of 2006, which included
$12.3 million in estimated acquisition related expenses. Net income in the
first quarter of 2006 was $6.8 million or $0.13 per share. Total cash and
investments were $206 million at March 31, 2007.
Atheros reports 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, the tax benefit due to the partial release of
deferred tax asset valuation allowance, amortization of acquired intangible
assets and acquisition related charges. A reconciliation of GAAP to non-GAAP
condensed consolidated statements of operations is presented in the
financial statements portion of this release.
Non-GAAP gross margins in the first quarter increased 40 basis points
sequentially to 48 percent, compared with 47.6 percent in the fourth quarter
of 2006 and 48.4 percent in the first quarter of 2006. Non-GAAP operating
income was 14.5 percent of revenue, compared with 15.3 percent in the fourth
quarter of 2006 and 13.6 percent in the first quarter of 2006.
Non-GAAP net income in the first quarter was $13.6 million or $0.23 per
diluted share, compared with non-GAAP net income of $12.7 million or $0.22
per diluted share in the fourth quarter of 2006 and $7.9 million or $0.14
per diluted share in the first quarter of 2006.
“Q1 was another strong quarter for Atheros and one in which we experienced
strong demand for both our WLAN and Ethernet products,” said Craig Barratt,
president and CEO of Atheros. “We reported our eighth consecutive quarter of
record revenue and the highest pro forma net income in our company’s
history.
“We shipped our hundred millionth WLAN chipset during the quarter, while we
continued to diversify and expand our revenue base and total available
market. In fact, in the first quarter we recorded our largest revenue yet
for products outside our core WLAN business,” he said.
“Today we announced the company’s first Ethernet switch product and the
industry’s lowest-cost, six-port 10/100 SOHO Fast Ethernet switch. With the
launch of our own high-performance, low-cost Ethernet switch solution, we
can now provide an even more comprehensive platform to our customers,” Dr.
Barratt said.
Recent Atheros Press Release Highlights:
- April
30- Atheros Launches Its First Ethernet Switch Solution
- April
9- Atheros Launches Industry’s Most-Integrated 802.11g Solution for Carrier
Gateways
- Feb.
28- Atheros Founder Named to the National Academy of Engineering
- Feb.
26- Atheros Ships 100 Million Wireless LAN Chipsets
Conference Call
Atheros will broadcast its first quarter 2007 financial results conference call
today, Monday, April 30, 2007, at 2 p.m. Pacific time
(5 p.m. Eastern time).
To listen to the call, please dial (210) 795-2680 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 (402) 220-6442.
The Atheros financial results conference call will be available via a live
webcast on the investor relations section of the Atheros website at http://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 other network 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 being 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 and the Atheros logo 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 success of our products
on the market; Atheros’ diversification plans and expansion into new markets;
the anticipated adoption of Atheros Ethernet and switching technologies; and the
anticipated growth of Atheros’ total business, 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 and pricing pressures;
general economic conditions; difficulties in the development of new products and
technologies; manufacturing difficulties; whether Atheros is successful in
marketing its products; and other risks detailed in Atheros’ Annual Report on
Form 10-K for the year ended December 31, 2006, 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
View All 2007 Press Releases
