Atheros Communications Announces
Third Quarter 2004 Financial Results
Sunnyvale, Calif. – Oct. 26, 2004
– Atheros Communications, Inc. (NASDAQ: ATHR), a leading developer of
advanced wireless LAN (WLAN) chipsets, today announced financial results for the
third quarter of fiscal 2004, ended Sept. 30, 2004.
“We continued to increase our penetration into new
customers and new markets in the third quarter,” said Craig Barratt, president
and CEO of Atheros. “Once again, we achieved strong
gross margins by leveraging our favorable product cost structure. Our customers
continued to expand their product offerings with solutions that incorporate our
premium Super G®, Super AG®
and eXtended Range™ features. In addition, our
ability to provide low-cost, single-chip solutions enables us to aggressively
drive prices down, encouraging a broader adoption of wireless products based on
the 802.11g and 802.11a/b/g standards,” he said.
Revenue in the third quarter of fiscal 2004 was $38.3
million, compared with $46.6 million in the second quarter of fiscal 2004. Gross
margins in the third quarter of fiscal 2004 were 45.6 percent, in line with
guidance and above the company’s target operating model. Gross margins reported
in the prior quarter were 49.9 percent.
In accordance with U.S. generally accepted accounting
principles (GAAP), the company’s net income in the third quarter of fiscal 2004
was $767,000, or earnings of $0.01 per diluted share on 52.4 million average
shares outstanding. This compares with net income of $5.5 million, or $0.10 per
diluted share on 53.8 million average shares outstanding in the second quarter
of fiscal 2004.
Total cash and short-term investments were $150.7 million
at Sept. 30, 2004.
Atheros reports net income (loss) and basic and diluted net
income (loss) per share in accordance with GAAP and additionally on a non-GAAP
basis. Non-GAAP net income, where applicable, excludes the effect of the
amortization of stock-based compensation. In the third quarter of 2004,
non-GAAP net income was $1.7 million, or $0.03 per diluted share, compared with
non-GAAP net income of $6.5 million, or $0.12 per diluted share, in the second
quarter of fiscal 2004.
World’s First Single-Chip 802.11 a/b/g
“We were very pleased to
announce that we are now sampling the world’s first complete single-chip IEEE
802.11a/b/g WLAN solution. The chip integrates an entire a/b/g solution in a
low-cost digital CMOS design, further illustrating our position as the
technology and cost leader in the WLAN market,” said Barratt.
“We have already received design wins for this innovative solution and we look
forward to driving a/b/g solutions further into the mainstream.”
Recent Highlights
During the third quarter, Sony began shipping 11 new VAIO®
PCs that incorporate Atheros 802.11b/g or 802.11a/b/g WLAN technologies,
including the Atheros Super G and Super AG® feature sets. The new VAIOs now
offer the world’s highest performance wireless networking capabilities, as
measured by throughput and range.
Also in the quarter, Fujitsu began shipping six
wireless-enabled notebook computer models and two Tablet PC models that
incorporate Atheros’ Super AG® and Super G technology. These new models, which
are available in North America, have Atheros brand stickers to help users
identify the feature set capabilities that Atheros technology provides.
D-Link, Linksys, NETGEAR, Sharp and TP-LINK each introduced
new products using Atheros solutions during the third quarter.
D-Link and Linksys recently launched a/g routers that
incorporate Atheros technology, and NETGEAR selected Atheros' 802.11a/b/g WLAN
solution with eXtended Range technology for its new high-performance wireless
router. Sharp announced that it has embedded the Atheros Super G
technology into two new Sharp Entertainment Mobile Note PCs, featuring a
“one-touch” DVD player; and TP-LINK announced it has adopted Atheros’
high-performance WLAN chipset technology in its new 802.11g wireless product
line.
On Oct. 12, Atheros announced that its Super AG®
technology has been embedded into the new NEC VersaPro Tablet PC, which began
shipping in Japan on Sept. 30.
Conference Call
Atheros will broadcast its third quarter fiscal 2004
financial results conference call today, Tuesday, Oct. 26, 2004 at 2:00 p.m.
Pacific time (5:00 p.m. Eastern time).
To listen to the call, please dial (630) 395-0017
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) 220-2056.
The Atheros financial results conference call will be
available via a live webcast on the investor relations section of the Atheros
web site at www.atheros.com. Please
access the web site 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 at the web site for one year.
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,
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, the Atheros logo, Atheros XR, Super
G and Super AG® are trademarks of Atheros Communications, Inc. All other
trademarks mentioned in this document are the sole property of their respective
owners.
Except for the historical information
contained in this press release, the matters set forth in this press release,
including but not limited to the adoption of the a/b/g solution in the market,
our ability to aggressively drive prices down and encourage broader adoption of
wireless products based on the 802.11g and 802.11a/b/g standards, and the
introduction of Atheros’ products in various customers’ products, 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, whether a/b/g solutions will be widely adopted;
whether the stated customers continue to incorporate our chipsets in their
products; the effects of competition and pricing pressures; the rate of growth
of the wireless telecommunications markets; variability in quarterly operating
results of Atheros and its customers; general economic conditions; and other
risks detailed in Atheros' Quarterly Report on Form 10-Q for the quarter ended
June 30, 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.
– Summary Financial Data PDF Link –
For
analyst inquires contact: Jack Lazar,
Chief Financial Officer of Atheros Communications,
Inc., +1-408-773-5200; or Deborah Stapleton of Stapleton Communications Inc.,
+1-650-470-0200, for Atheros
Cheryl Patstone, 408-773-5344, cheryl@atheros.com
or Greg Wood, A&R Partners, 650-762-2838,
gwood@arpartners.com.
"Safe
Harbor" Statement under the Private Securities Litigation Reform Act of 1995:
Statements in this press release regarding Atheros Communications's business
which are not historical facts are "forward-looking statements" that involve
risks and uncertainties. For a discussion of such risks and uncertainties, which
could cause actual results to differ from those contained in the forward-looking
statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for
the most recently ended fiscal year.
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