Atheros Communications Inc. (ATHR) reported revenues of $185.7 million in the fourth quarter of 2009, up 19% sequentially and a growth of 89% year over year.
Management stated that both Mobile WLAN and Ethernet product lines demonstrated strong revenue growth in the reported quarter. The recent acquisition of Intellon expanded the company’s technology portfolio to include leadership powerline communication products. Atheros now has a diverse product portfolio including seamless Wi-Fi, PLC and Ethernet hybrid solutions.
Gross margins came in at 50.2% compared to 48.4% in the third quarter of 2009 and 49.2% in the previous quarter. Operating margin came in at 23.4% compared to 19.4% in the previous quarter and 7.6% in the year-ago quarter.
Net income came in at $41.2 million or 62 cents per share compared to a net income of $29.3 million or 46 cents per share in the third quarter of 2009 and $10.8 million or 17 cents per share in the fourth quarter of 2008. The reported net income per share easily beat the Zacks Consensus Estimate of 40 cents per share.
During the reported quarter, the company generated $63.3 million of cash from operations and paid $56 million for the Intellon acquisition. Atheros exited the quarter with cash and cash and equivalents of $402.2 million, an increase of $19.4 million from the previous quarter.
For full-year 2009, revenues came in at $542.5 million, up 15% year over year. Net income came in at $86.7 million or $1.36 per share, compared to a net income of $70.8 million or $1.14 per share in 2008.
Going forward, management expects revenues between $195 million and $205 million in the first quarter of 2010, driven by growth in Ethernet business. Increased penetration in the WiFi access point market and share gains in the Ethernet controller/switch markets and the Bluetooth chip market are the expected growth drivers. However, management also expects a seasonal decline of consumer products.
Gross margin is projected around 48.5% – 49.5%, down from 50.2% in the fourth quarter of 2009 due to a higher mix of lower-margin products. Earnings per share are forecasted between 48 cents and 52 cents.
California-based Atheros Communications is a leader in the designing of chipsets used in WLAN devices.
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