Non-WLAN business leads strong quarter for Atheros

Edited by the Electronicstalk editorial team May 1, 2007

Atheros Communications has announced financial results for the first quarter of 2007, with revenues up 9% from the same period during 2006.

Atheros Communications has announced financial results for the first quarter of 2007, ended 31st March 2007.

Revenue in the first quarter was $95.5 million, up 9% from the $87.8 million reported in the fourth quarter of 2006 and up 56% from the $61.1 million reported in the first quarter of 2006.

In accordance with US generally accepted accounting principles (GAAP), the company recorded first quarter net income of $7.6 million or $0.13 per diluted share.

This compares with a GAAP net loss of $1.2 million or a loss of $0.02 per diluted share in the fourth quarter of 2006, which included $12.3 million in estimated acquisition related expenses.

Net income in the first quarter of 2006 was $6.8 million or $0.13 per share.

Total cash and investments were $206 million at 31st March 2007.

Non-GAAP gross margins in the first quarter increased 40 basis points sequentially to 48%, compared with 47.6% in the fourth quarter of 2006 and 48.4% in the first quarter of 2006.

Non-GAAP operating income was 14.5% of revenue, compared with 15.3% in the fourth quarter of 2006 and 13.6% in the first quarter of 2006.

Non-GAAP net income in the first quarter was $13.6 million or $0.23 per diluted share, compared with non-GAAP net income of $12.7 million or $0.22 per diluted share in the fourth quarter of 2006 and $7.9 million or $0.14 per diluted share in the first quarter of 2006.

"Q1 was another strong quarter for Atheros and one in which we experienced strong demand for both our WLAN and Ethernet products", said Craig Barratt, President and CEO of Atheros.

"We reported our eighth consecutive quarter of record revenue and the highest pro forma net income in our company's history".

"We shipped our hundred millionth WLAN chipset during the quarter, while we continued to diversify and expand our revenue base and total available market".

"In fact, in the first quarter we recorded our largest revenue yet for products outside our core WLAN business", he said.