Atheros
Announces Financial Results for Q2 2008
Thirteenth
Consecutive Quarter of Revenue Growth
Santa
Clara, Calif., -July 28, 2008 - Atheros
Communications, Inc. (Nasdaq: ATHR), a leading developer
of advanced wireless and wired network communications
solutions, today announced financial results for its
second quarter ended June 30, 2008.
Revenue in the second quarter was a
record $121.5 million, compared with $114.5 million
reported in the first quarter of 2008 and $100.8 million
reported in the second quarter of 2007.
In accordance with U.S. generally
accepted accounting principles (GAAP), the company
recorded second quarter net income of $10.1 million or
$0.16 per diluted share. This compares with GAAP net
income of $3.4 million or $0.06 per diluted share in the
first quarter of 2008. GAAP net income in the second
quarter of 2007 was $9.3 million or $0.16 per diluted
share. Total cash, cash equivalents and marketable
securities were $276.6 million at June 30, 2008, up
$21.1 million from the prior quarter.
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 benefit due to a change in state
tax filing position and the tax impact of these excluded
items. A reconciliation of preliminary GAAP to non-GAAP
net income, 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 margin in the second
quarter was 50.8 percent, compared with 51.2 percent in
the first quarter of 2008 and 49.7 percent in the second
quarter of 2007. Non-GAAP operating income was 16.6
percent of revenue, compared with 15.3 percent in the
first quarter of 2008 and 16.1 percent in the second
quarter of 2007.
Non-GAAP net income in the second
quarter was $19.3 million or $0.31 per diluted share,
compared with $17.2 million or $0.28 per diluted share
in the first quarter of 2008 and $14.7 million or $0.25
per diluted share in the second quarter of 2007.h
"We are pleased to report another
very strong quarter, our 13th consecutive quarter of
revenue growth,” said Craig Barratt, president and CEO.
“We experienced broad-based growth across our PC OEM,
Networking and Consumer channels and continued growth of
our Ethernet and Mobile WLAN product revenues. Revenue
from our 11n products grew more than 50 percent
sequentially, while our 11g products continued to be a
significant contributor to our overall results,” Dr.
Barratt said.
Recent
Atheros Highlights.
-
July 28 – Atheros Announces the
Appointment of Dan Artusi to its Board of Directors
-
June 4- Atheros’ XSPAN
Technology Delivers Industry-Leading 802.11n
Performance in New AMD Turion™ X2 Ultra Notebook
Platform
-
June 3- Atheros Demonstrates
its Expanded Communications Technology Portfolio at
Computex Taipei
-
June 2- Atheros XSPAN Enhances
Home Networking with Smart, High-Capacity Routing
Platform
-
May 20- Atheros Enhances New
Netflix Player by Roku with Wi-Fi Connectivity
-
May 19- Atheros Enables
Industry-Leading Wi-Fi in Next-Generation Cable
Modem Gateways Based on TI Puma 5 Product Family
-
May 12- Atheros Receives the
2008 Emerging Growth Company Award from the Silicon
Valley Chapter of the Association for Corporate
Growth
Conference
Call
Atheros will broadcast its second
quarter financial results conference call today, Monday,
July 28, 2008 at 2 p.m. Pacific time (5 p.m. Eastern
time).
To listen to the call, please dial
212-547-0138 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 203-369-0975.
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 wired 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 and XSPAN 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 our anticipated
growth, 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; whether Atheros is
successful in marketing and selling its products; and
other risks detailed in Atheros' Annual Report on Form
10-K for the year ended December 31, 2007 and its
Quarterly Report on Form 10-Q for the quarter ended
March 31, 2008, 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
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