Atheros
Announces Financial Results for Q4 and Fiscal 2007
Eleventh Consecutive Quarter of Revenue Growth
2007 Revenue up 38 Percent
Santa
Clara, Calif. – Jan. 28, 2007 – Atheros
Communications, Inc. (NASDAQ: ATHR), a leading developer
of advanced wired and wireless solutions, today
announced preliminary financial results for the fourth
quarter of 2007 and year ended Dec. 31, 2007.
Revenue in the fourth quarter was a
record $114.3 million, up eight percent from the $106.3
million reported in the third quarter of 2007 and up 30
percent from the $87.8 million reported in the fourth
quarter of 2006.
In accordance with U.S. generally
accepted accounting principles (GAAP), the company
recorded fourth quarter net income of $13.4 million or
$0.22 per diluted share. This compares with GAAP net
income of $9.7 million or $0.16 per diluted share in the
third quarter of 2007. Net loss in the fourth quarter
of 2006 was $1.2 million or $0.02 per diluted share.
Total cash and investments were $250.0 million at Dec.
31, 2007, up $1.7 million from the prior quarter and up
$64.1 million from the cash and investments balance at
Dec. 31, 2006.
Revenue in 2007 was $417.0 million,
up 38 percent from the $301.7 million reported in 2006.
Net income in accordance with GAAP for 2007 was $40.0
million or $0.67 per diluted share. In 2006, GAAP net
income was $18.7 million or $0.34 per diluted share.
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, the tax impact of these excluded items and
the tax benefit related to the release of deferred tax
valuation allowances. A reconciliation of preliminary
GAAP to non-GAAP net income (loss), 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
fourth quarter were a record 52.3 percent, compared with
47.6 percent in the fourth quarter of 2006. Non-GAAP
operating income increased to a record 19.0 percent of
revenue, compared with 15.3 percent in the fourth
quarter of 2006.
Non-GAAP net income in the fourth
quarter was a record $21.4 million or $0.36 per diluted
share, compared with $12.7 million or $0.22 per diluted
share in the fourth quarter of 2006. Non-GAAP net income
for the full year 2007 was $66.7 million or $1.12 per
diluted share, compared with non-GAAP net income of
$40.7 million or $0.73 per diluted share in 2006.
“The fourth quarter marks Atheros’
eleventh consecutive quarter of revenue growth and
another record quarter of non-GAAP operating income,”
said Craig Barratt, president and CEO. “The record gross
margins in Q4 reflect our success in designing cost
effective products while providing our customers with
industry leading features and competitive price points.
“We entered the large and rapidly
growing GPS market in the fourth quarter with the
acquisition of u-Nav Microelectronics. This acquisition
gives us yet another opportunity to expand the size of
our addressable markets in 2008,” Dr. Barratt said. “We
have significantly diversified our product portfolio
over the past few years with the addition of GPS,
Bluetooth, Ethernet, mobile WLAN and PAS solutions, in
addition to our industry leading WLAN solutions for PC
and networking customers. We are now providing our
customers with a wider range of communications
platforms, which is an important part of our long-term
growth strategy,” he said.
Recent
Atheros Press Release Highlights:
-
Jan 16 - Atheros’ Wi-Fi Helps
Unleash a Wave of Award-Winning Products at CES 2008
-
Jan. 7 - CES 2008: Atheros
Demonstrates Expanded Technology Portfolio to
Enhance Connectivity and Multimedia at Home and
On-the-Go
-
Dec. 17 - Atheros Encores New
802.11n Single-Chip to Deliver Highest Performance
Wi-Fi in Multimedia Home Gateways
-
Dec. 13 - Atheros
Communications Acquires u-Nav Microelectronics
-
Dec. 10 - Atheros Receives
Leadership Award from Fabless Semiconductor
Association for Second Consecutive Year
-
Nov. 8 - Atheros Hits the PC
Sweet Spot with Single-Chip 802.11n
-
Nov. 8 - Atheros ETHOS
Technology Portfolio Expands with New Gigabit
Ethernet Solutions
-
Nov. 8 - Atheros Expands ROCm
Bluetooth Portfolio with New System-on-Chip for
Headsets
Conference
Call
Atheros will broadcast its fourth
quarter and year end 2007 financial results conference
call today, Monday, Jan. 28, 2008 at 2 p.m. Pacific
time (5 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 (203) 369-0376.
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
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, ETHOS 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
growth of the GPS market and the anticipated benefits of
the u-Nav acquisition, 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 we are successful in the GPS market;
challenges in integrating acquired businesses; the
impacts of competition, technological advances; general
economic conditions; difficulties in the development of
new products and technologies; 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 September 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 2008 Press Releases
