Atheros Q1 Forecast in Line, Stock Jumps Five Percent
Good chip company, bad chip company: While SanDisk (SNDK) shares plummet 14 percent following a much-worse-than-expected Q1 outlook, Atheros Communications (ATHR) is up nearly five percent in after-hours trading at $12.68.
During a conference call with analysts following a better-than-expected fourth-quarter report, wireless chipmaker Atheros this evening forecast Q1 sales to fall 12 to 18 percent, which would be a range of $80.61 million to $86.5 million. The Street has been looking for $85 million. The company expects gross profit margin to come in between 48.5 and 49.5 percent, not far from the 49.2 percent of Q4. Operating expenses will fall one to three percent, quarter to quarter, the company said, to $39.5 million to $49.5 million. The company forecast profit per share of three cents to five cents, which is in line with expectations at the top end.
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