Technically, the stock rallied to the 200 day moving average (actually through it intraday, before closing at it) which might be the peak of the move if there is no push into this name by the computers. In after hours the stock was down 2%; I was hoping for a report that was able to create a surge through the key technical level. I'll decide if I keep holding this in the next few days because if it cannot get over the 200 day, it remains in the very small cadre of stocks showing immense weakness in a tape where throwing a dart (blindfolded) creates winners.
(Full report here)
- Wireless networking chipmaker Atheros Communications Inc (ATHR.O) forecast fourth-quarter results well short of market estimates as it expects weakness in its computing segment to continue.
- For the third quarter, the company earned $28.1 million, or 39 cents a share, compared with a profit of $38.6 million, or 60 cents per share, a year ago. Excluding items, Atheros earned 67 cents a share, in line with market view. Revenue rose 58 percent to $247.1 million, lagging analysts' estimates of $248.4 million.
- The company sees a sequential drop in its computing segment as demand for wireless LAN and ethernet products remains soft.
- The company forecast fourth-quarter adjusted earnings of 48-51 cents a share, on sales of $220-$225 million. Analysts on average were looking for earnings of 65 cents a share, excluding items, on sales of $251.1 million,
- Shares of the company have lost 35 percent of their value since touching a year high of $43.90 in April amid growing concerns about weakening PC demand.
- Atheros has been diversifying away from its PC original equipment manufacturer business, which contributed 23 percent to third-quarter sales, down from 40 percent last year.
- "While we continue to see weakness in certain channels, increasing demand for Atheros' ROCm® low-power mobile connectivity solutions in a growing number of consumer electronics products fueled our record revenue in the third quarter," said Craig Barratt, president and chief executive officer of Atheros Communications. "Additionally, with our recently completed acquisition of Opulan, we further strengthened our networking product line, enabling us to address an even larger portion of the rapidly expanding global networking market."