Atheros Announces
Financial Results for Q3 2007
Tenth Consecutive Quarter of Revenue Growth
Santa Clara, Calif.
– Oct. 29, 2007 – Atheros Communications, Inc. (NASDAQ: ATHR), a
leading developer of advanced wireless solutions, today announced financial
results for the third quarter of 2007, ended Sept. 30, 2007.
Revenue in the third quarter was a record $106.3 million, up five percent from
the $100.8 million reported in the second quarter of 2007 and up 34 percent from
the $79.6 million reported in the third quarter of 2006.
In
accordance with U.S. generally accepted accounting principles (GAAP), the
company recorded third quarter net income of $9.7 million or $0.16 per diluted
share. This compares with GAAP net income of $9.3 million or $0.16 per diluted
share in the second quarter of 2007. Net income in the third quarter of 2006
was $6.3 million or $0.11 per diluted share. Total cash and investments were
$248.3 million at Sept. 30, 2007, up $20.1 million from the prior quarter.
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,
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 third quarter were
49.3 percent, compared with 49.7 percent in the second quarter of 2007 and 48
percent in the third quarter of 2006. Non-GAAP operating income increased to a
record 17 percent of revenue, compared with 16.1 percent in the second quarter
of 2007 and 14.4 percent in the third quarter of 2006.
Non-GAAP net income in the third quarter was a record $16.9 million or $0.28 per
diluted share, compared with non-GAAP net income of $14.7 million or $0.25 per
diluted share in the second quarter of 2007 and $10.4 million or $0.19 per
diluted share in the third quarter of 2006.
“Our networking business was especially strong in the third
quarter, as sales of our 11g and 11n solutions led to significant increases in
revenue with both our retail and carrier customers,” said Craig Barratt,
president and CEO of Atheros. “Adoption of our AR2425 PCI Express solution by a
wide array of PC customers helped drive record 11g revenue in the quarter. In
addition, our Ethernet business grew once again, as we continued to diversify
and strengthen our customer base.
“Today, we announced our newest
addition to the ROCm family, the AR6002, which is the
industry’s highest throughput and lowest-power solution for
mobile devices. These second-generation ROCm solutions are sampling with
customers now, and we expect they will be in volume production in the first
quarter of 2008,” he said.
Recent Atheros Press Release
Highlights:
-
Oct. 29 – Atheros Breaks the
Power Barrier with New Wi-Fi Design for Mobile Devices
-
Sept. 24 - Atheros ROCm
Technology Teams With Eye-Fi to Unleash the Future of Wireless Photo Sharing
-
Sept. 11 - Jungo and Atheros
Unveil Draft 2.0 802.11n Reference Designs For High Speed Residential and
Business Gateways
-
Sept. 4 - Atheros ROCm
Technology Teams with Texas Instruments to Enable Wi-Fi in Mobile,
High-Quality Video Products
Conference Call
Atheros will broadcast its third quarter 2007 financial results conference call
today, Monday, Oct. 29, 2007, at 2 p.m. Pacific time (5 p.m. Eastern time).
To
listen to the call, please dial (210) 234-0001 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) 369-3432.
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, 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 timing of volume production of the AR6002
ROCm solution, 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; 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 and its Quarterly Report on Form 10-Q for the quarter ended June 30, 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
View All 2007 Press Releases
