There is always a silver lining. An example: The semiconductor sector has seen disappointing results this year, but--and there is always a "but"--one company proved to be an exception: Atheros's revenues grew by 70 percent in the second quarter, reaching $73 million.
We wrote last week that if AMD were to follow Intel's Centrino strategy and offer bundled chips, chipsets, and WiFi cards, companies such as Atheros and Broadcom would be facing a tough slog. We are not there yet (and may never be, as AMD says it has no intention of emulating Intel), so Atheros has been able to do more than hold its own in a competitive sector, taking advantage of the steady spread of WiFi capabilities from the PC and laptop to consumer electronics (see story #3). Analysts note that Metalink and Marvell may yet give Atheros a run for its money, but for now Atheros is leading the pack.
For more on Atheros good WiFi showing:
- see the transcript of company's Q2 earnings conference call
- read Mick Weinstein's comments
- check out Paul Callhan's March 2006 discussion
- see Shlomi Cohen's discussion of Atheros's competitors Metalink and Marvell