This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Profit Swoons at Atheros

SAN FRANCISCO -- Atheros Communications' (ATHR) bottom line was cut in half in the first quarter, as write-offs, acquisition-related charges and higher expenses weighed down the chipmaker's results.

But the company said demand for its wireless networking chips is set to accelerate in the coming months, despite general fears that a sluggish economy will pinch sales of the PCs that incorporate its chips.

Santa Clara, Calif.-based Atheros reported sales of $114.5 million in the three months ended March 31, compared with $95.5 million at this time last year.

Analysts polled by Thomson Financial were expected $113.8 million in sales.

Whiles sales to PC makers were soft in the first quarter, due to seasonality and a weak economy, Atheros said overall revenue from its wireless network chips was particularly strong, thanks to healthy demand from retail customers and communications companies.

And Atheros' line of older 802.11G wireless chips have proven to have nice legs: The company's wireless chips are finding a niche in the nascent category of ultramobile notebooks epitomized by the Asus Eee PC.

"The sub-$500 PC segment is becoming increasingly important to Atheros," said CEO Craig Barratt in a post-earnings conference call.

He noted that Atheros is enjoying an advantage in the segment, since rival Intel (INTC - Get Report) no longer offers Centrino-branded chips based on the older, less-expensive 802.11G standard.

Atheros posted net income of $3.4 million, or 6 cents a share, vs. $7.6 million, or 13 cents a share, in the year ago period.
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
INTC $28.64 1.49%
QCOM $44.56 3.63%
AAPL $93.99 0.31%
FB $102.01 0.10%
GOOG $682.40 -0.10%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs