Transcript
ATHEROS CORPORATE Overview NASDAQ: ATHR
Revenue $ in millions 1000 900
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FY 2010 Revenue GM % Net income EPS (fully diluted) Cash** Fiscal year ends
GAAP Non-GAAP* $926.8 M 49.2% 49.7% $54.4 M $180.7 M $0.75 $2.48 $515.8 M Dec 31
*Non-GAAP net income excludes, where applicable, the effect of stock-based compensation, amortization of acquired intangible assets and acquisition-related charges, legal settlement charges and the tax impact of these excluded items. **Cash includes cash, cash equivalents and short-term marketable securities.
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Price at 12/31/10 $35.92 12-month price range $22.77–$43.90 Shares outstanding 72.4 M Market capitalization $2,600 M Average daily volume 2.0 M
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Atheros Communications is a global leader in innovative technologies for wireless and wired communications products. Atheros combines its wireless and networking systems expertise with high-performance radio frequency (RF), mixed signal semiconductor design skills to provide highly integrated chipsets that are manufactured on low-cost, standard complementary metal-oxide semiconductor (CMOS) processes. Atheros technology is used by a broad base of leading customers, including networking equipment, computing and consumer device manufacturers. Investment Highlights Global semiconductor company providing innovative technologies for wireless and wired solutions Record revenue in 2010 9 consecutive years of revenue growth Customer base across computing, retail, carrier and enterprise networking, and mobile and digital home consumer electronics markets Expert in designing single-chip wireless system solutions in standard digital CMOS On January 5th, 2011 Qualcomm and Atheros announced that they have signed a definitive agreement whereby Qualcomm will acquire Atheros subject to customary closing conditions, including the receipt of domestic and foreign regulatory approvals and the approval of Atheros’ stockholders.
CHANNEL MIX Revenue $ in millions 1000 900 800
Atheros offers a broad portfolio of wired and wireless connectivity solutions for networking, computing and consumer applications. As the influx of media applications and services stretch the limits of today’s home, business and mobile networks, Atheros is not only improving upon the performance of its wired and wireless solutions, but is also driving the industry toward hybrid solutions that significantly improve network capacity, flexibility and simplicity. By combining the benefits of its Wi-Fi, Powerline and Ethernet portfolios, Atheros’ new line of hybrid solutions are delivering the best of the wired and wireless worlds.
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Networking
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2010 Consumer
Computing
Wireless Networking and Computing – Atheros is a leading provider of high-performance, low-power, Wi-Fi solutions for a wide array of applications, from computers and consumer electronics to retail, enterprise and carrier networking products. Atheros’ XSPAN® family is the industry’s most widely adopted 2-stream 11n technology – employed by all of the top 10 PC OEMs, all of the top 5 retail networking vendors, nearly all enterprise networking manufacturers, and many of the leading carrier gateway manufacturers. XSPAN solutions deliver 300 Mbps PHY rates and provide reliable signals to enable whole-home wireless connectivity. Atheros also offers XSPAN with Signal Sustain Technology-3 (SST3), a family of 3-stream 11n solutions for PCs and networking. Delivering an average of 50% faster throughput across the length of the signal, XSPAN with SST3 is ideal for the most demanding multimedia applications. Align®, Atheros’ 1-stream 11n technology, offers up to 150 Mbps PHY rates and 11n-class coverage for tablets, netbooks and value notebooks from 9 of the top 10 PC OEMs and in wireless routers from all of the top 5 retail networking vendors. Mobile WLAN – Atheros’s growing mobile portfolio delivers the industry’s highest-performance and lowest power WLAN solutions for mobile phones, tablets, e-Readers, gaming devices and other portable CE products. Built on Atheros’ low-power ROCm® architecture, the AR6004 brings 2-stream 802.11n performance to media-centric mobile devices, while the AR6005 is the industry’s smallest and most energy efficient 1-stream 802.11n mobile WLAN solution. Atheros’ flexible ROCm family also supports the industry’s broadest range of operating systems, interfaces and mobile configurations. ®
TECHNOLOGY MIX % 100
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Ethernet – The ETHOS® family of Gigabit and Fast Ethernet switches, controllers and PHY transceivers provides computing and network equipment manufacturers with a competitive edge when designing products for energy-conscious consumers and businesses. Atheros’ latest ETHOS solutions support the new IEEE 802.3az Energy Efficient Ethernet standard and use several other techniques to offer the industry’s lowest power consumption. In addition, ETHOS solutions include the advanced features that ensure the optimal performance for retail, enterprise and carrier customers.
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802.11g, 802.11a/g
Bluetooth – Atheros delivers a variety of Bluetooth solutions that provide robust, yet simple personal area connectivity. Its portfolio of Bluetooth 2.1, 3.0 and 4.0 solutions support the latest High Speed and Low Energy features to meet the requirements of today’s notebooks, tablets, mobile handsets, gaming systems, audio and media devices and remote controls. Atheros also offers a growing number of solutions that combine its Bluetooth and Wi-Fi technology to enable more wireless features in a variety of products. To ensure the best possible user experience in these devices, Atheros offers Universal Wireless Cooperation™, a suite of innovative coexistence techniques that minimize interference between the Wi-Fi and Bluetooth radios and ensure smooth operation of both wireless features.
2010
802.11n
Powerline – The AMP™ family of PLC solutions provides high-performance broadband networking in the digital home and low-power connectivity for Smart Grid applications. Atheros’ newest solution, the AR7400, is the first product to support both the IEEE 1901 and HomePlug AV standards. It offers PHY rates of more than 500 Mbps over powerline and 700 over coaxial cable, to provide service providers with a flexible and powerful platform for delivering advanced media services. GPS – Atheros’ industry-leading FYX™ location solutions include its third-generation GPS receiver, the AR1520, and companion FYX 1.0 software suite. Based on the FYX location core, the AR1520 delivers greater navigation accuracy, faster location fixes, enhanced receive sensitivity, and lower power consumption – making it an ideal solution for personal navigation devices (PNDs), netbooks, tablets, portable gaming devices, media players and smart phones. PON – Atheros recently extended its industry-leading Ethernet passive optical network (EPON) portfolio with the world’s first complete 10G EPON solution. Designed for broadband access, mobile backhaul and cable uplink applications, Atheros’ 1G and 10G optical line terminal (OLT) and optical network unit (ONU) solutions enable service providers to meet the increasing bandwidth demands of homes, multi-dwelling units (MDUs), businesses and cellular networks. By leveraging its portfolio of Ethernet, Wi-Fi and powerline solutions, Atheros’ WAN-to-LAN architecture also enables intelligent routing and broadband sharing throughout the home.
HISTORY OF INNOVATION Innovation First low-cost, 802.11a all-CMOS WLAN designs First 54Mbps Wi-Fi
Compatibility First dual-band 11a/b chipset First with full international capability First AES and WPA security at full line speed
Performance First dual-band 11a/g First Wi-Fi Certified® 11g products Atheros introduces Super G® & Super AG®
2001
Consumer >2 Billion units Cellular, Gaming, PMPs, Cameras and A/V
2002
Dr. Craig H. Barratt President and Chief Executive Officer Jack R. Lazar Chief Financial Officer and Senior Vice President, Corporate Development Richard G. Bahr Vice President, Engineering Hing C. Chu Vice President, Operations
2003
Amir Faintuch Senior Vice President and General Manager, Consumer Business Unit Richard Hegberg Vice President, Worldwide Sales
Range and Battery Life Atheros XR® doubles range of Wi-Fi Reduces power consumption by 60%
Integration First single-chip MAC/Baseband/Radio for 11a/g and 11a
CORPORATE EXECUTIVE OFFICERS
William J. McFarland Chief Technical Officer
2004
Daniel A. Rabinovitsj Senior Vice President and General Manager, Networking Business Unit
AP/ROUTERS First low-cost, single-chip 11g AP
Gary L. Szilagyi Vice President, Consumer Business Unit
Universal Connectivity First USB 2.0 WLAN chips with Super G® and Super AG®
Adam H. Tachner Vice President and General Counsel
EXPANDING MarketS First PAS single-chip cellular solution First single and dual-band chips for mobile WLAN products
Peg Wynn Vice President, Global Human Resources
Networking ~750 Million units
Embedded Integration First single-chip 11a/g with PCI Express® Enabling Ubiquitous Wi-Fi Highly integrated single-chip 11g AP design
Expanding PERFORMANCE, EXPANDING POSSIBILITIES First draft 11n triple-radio design
David D. Torre Vice President and Chief Accounting Officer
2005
2006
Gateways, APs and Routers
Dr. Jason Zheng Senior Vice President and General Manager, Asia Pacific
Board of Directors Dr. Willy C. Shih Chairman of the Board and Professor of Management Practice at the Harvard Business School
Advanced Network Processors Custom-designed to optimize WLAN performance
Daniel A. Artusi Independent Consultant
Voice-Over-Wi-Fi First single-chip 11g handset designs
Dr. Craig H. Barratt President and CEO of Atheros Communications, Inc.
Dual-Concurrent Integration Delivers the ultimate 11n experience with two simultaneous networks
Charles E. Harris Independent Industry Consultant
2007
Christine King President and CEO of Standard Microsystems Corporation
SINGLE-CHIP BLUETOOTH SOLUTIONS Bluetooth® for the PC and monoheadset market
Dr. Teresa H. Meng Fellow of the IEEE and Professor of Electrical Engineering, Stanford University
Gigabit Ethernet SolutionS Smallest and most competitive Gigabit Ethernet PHY Gigabit switch provides complete wireless routing solutions
Marshall L. Mohr Senior Vice President and CFO of Intuitive Surgical, Inc.
Single-chip GPS Solutions Advanced sensitivity and low-power
SINGLE-CHIP GPS RECEIVER Delivering state-of-the-art Assisted GPS
Andrew S. Rappaport Partner at August Capital
2008
Analysts
HIGH-CAPACITY ROUTING First single-board, dual-radio 11n router platform with XSPAN® PERFORMANCE MEETS PRACTICAL 11n-class performance to value-priced products with Align®
Ethernet Controller Solutions Enabling PC makers to deliver high-performance, costcompetitive notebook & desktop LAN-on-Motherboard designs
2009
COMPUTING ~300 Million units Desktop, Notebook and Netbooks
Atheros New Generation Bluetooth 3.0 Providing more than a 10x increase in Bluetooth speeds to support advanced multimedia and point-to-point connectivity Atheros Universal Wireless Cooperation™ First 1-stream 11n & Bluetooth® combo for the PC market Most Advanced Integration of 2-stream 11n Enables no-compromise, full MIMO performance XSPAN with SST3 3-stream 11n ecosystem for highest performance multimedia applications ROCm with Align Mobile 11n brings multimedia performance to smartphones, mobile gaming and mobile CE
Atheros FYX Location Core Delivering unmatched navigation accuracy and speed
2010
Atheros AMP Powerline Technology First PLC Solution to support IEEE 1901 and HomePlug AV standards
Investor Contacts
Hybrid NetworkING Solutions First solutions to combine Wi-Fi, PLC and Ethernet to greatly improve the home networking experience for consumers
Jack R. Lazar Chief Financial Officer and SVP, Corporate Development Atheros Communications, Inc. (408) 773.5200
Atheros Communications, Inc. 1700 Technology Drive San Jose, CA 95110 T 408.773.5200
[email protected] The Bluetooth® word mark and logos are owned by the Bluetooth SIG, Inc. and any use of such marks by Atheros is under license. Other trademarks and trade names are those of their respective owners. ATHR-CO-IR-Q410-2-9-11
ABR Investment Strategy, LLC – Rob Sanderson Barclays Capital – Tim Luke Benchmark Company – Gary Mobley Canaccord Genuity – Bobby Burleson Caris & Co. – Craig Ellis Cowen & Co. – Raj Seth D.A. Davidson & Co. – Aalok K. Shah Deutsche Bank – Jonathan Goldberg FBN Securities, Inc. – Mike Burton FBR Capital Markets & Co. – Craig Berger Gleacher & Company – Mark McKechnie Janney Montgomery Scott LLC – Nicholas Aberle Jefferies & Co. – Adam Benjamin JP Morgan – Harlan Sur Lazard Capital Markets – Daniel Amir Morgan Stanley – Sanjay Devgan Needham & Co. – Quinn Bolton Noruma – Romit Shah Oppenheimer – Dan Morris Pacific Crest – Ruben Roy Piper Jaffray – Gus Richard Roth Capital Partners – Arnab Chanda Stifel Nicolaus & Company, Inc. – Tore Svanberg Wedbush Morgan Securities – Betsy Van Hees William Blair & Co. – Anil Doradla
www.atheros.com
David H. Allen Director, Investor Relations Atheros Communications, Inc. (408) 830.5762
