Atheros' Net Falls on Charges

The chipmaker reports a drop in sales and net income in the first quarter.
By Alexei Oreskovic ,

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.

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.

The company said revenue from wireless networking chips was particularly strong in the first quarter, thanks to demand from retailer customers and communications companies.

The Santa Clara, Calif., chipmaker 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.

Atheros incurred more than $14 million in charges, including stock compensation expenses and a $5 million write-off for impairment of long-term investments.

Excluding the charges, Atheros said it earned 28 cents a share. The average analyst expectation of 28 cents EPS excluded stock compensation expenses. It was not immediately clear if the other charges were also excluded.

Shares of Atheros were up 26 cents at $26.79 in extended trading Monday.

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