Atheros 1Q08 Update
Atheros earned revenues of $114.5 million which was up by 0.2 million q-o-q. Net income for the period was $7.6 million. Taiwan amounted for the maximum sales with 52% of the total revenues coming from Taiwan while China contributed another 26%. US sales stood at just 1%. Asia continued to be the largest business region for Atheros with 94% of the total revenues from there. However comparing with Q1 of 2007, the sales from Asia have declined by 4%.
Hon Hai Precision Industry Co Ltd accounted for 17% of net revenues and was the only major customer for the period.
WLAN product adoption by retail and carrier customers of Atheros was the primary source for the quarterly revenues. Other areas that did well for Atheros include PAS, Ethernet and GPS chipsets. In terms of shipments GPS and WLAN chipsets grew in units shipped while PAS sales declined. Overall, comparing the shipments with those of Q1 2007, there was an increase of 58% in the number of chipsets shipped. Revenues did not grow proportionately due to decrease in average selling price of the chip.
During the period, together with Infineon, it announced lowest cost mobile phone platform for Internet Based Telephony. It announced a new GPS solution targeted at mobile phones, Personal Navigation Devices and PMPs thereby adding a new chip to the ROCm family of GPS solutions. It also announced a solution enabling rich entertainment applications and content on smartphones over WiFi.
During the quarter, Z-Com selected Atheros AR6161G single chip VoIP solution to be used in its WP520 Honey Pair single-mode IP phone.
