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Atheros Announces Financial Results for Q3 2007
Tenth Consecutive Quarter of Revenue Growth
Santa Clara, Calif. October 28, 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 anon-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.
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