Atheros Communications Inc. presented an investor presentation for Q2 2009. The presentation discussed Atheros' position as a leader in wireless technologies like WLAN, Bluetooth, and GPS. It summarized Q1 2009 financial results including revenue above guidance and EPS above guidance. It also provided Q2 2009 guidance of 15-20% sequential revenue growth and EPS of $0.12-$0.14. The presentation highlighted Atheros' focus on diversifying into new markets like mobile and consumer while managing expenses in the current economy.

1. ATH E R O S C O M M U N I CATI O N S I N C
S, C.
Investor Relations Presentation
WIRELESS FUTURE. UNLEASHED NOW.
Q2 2009
© ATHEROS COMMUNICATIONS

2. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Safe Harbor Statement
Some of the information in this presentation contains projections or other forward-looking
statements regarding future events, market trends, the future financial performance of Atheros
Communications, Inc.,
Communications Inc our Q2 revenue and EPS guidance our target operating model our
guidance, model,
anticipated diversification and expansion into new markets, and the expected growth
opportunities for Atheros. These statements involve risks and uncertainties, and actual events
or results may differ materially. Among the important factors which could cause actual results
to differ materially from those in the forward looking statements are general economic and
forward-looking
market conditions in the U.S. and worldwide; the extent to which the markets for WLAN,
Bluetooth, Ethernet and GPS semiconductors and other semiconductor products will grow;
our ability to execute our business strategy; our ability to manage any growth and
diversification into new markets; our ability to manage our expenses in the current difficult
economic environment; our ability to forecast accurately revenues from sales of our products
and costs of production; the effects of competition in the marketplace; the effects of
technological change; our ability to retain and attract employees; market acceptance of our
existing and new products; our ability to develop new products and technologies for WLANWLAN,
Bluetooth, Ethernet, GPS and other wireless and wired communications markets that are
successful in these markets; and other factors detailed in our filings with the Securities and
Exchange Commission, including our recent filings on Forms 10-K, 10-Q and 8-K. These
forward looking
forward-looking statements speak only as of the date hereof or as of the date otherwise stated
herein. Atheros disclaims any obligation to update these forward-looking statements.
2

3. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Atheros Overview
Fabless semiconductor company driving highly integrated
communication platforms
Both technology and cost leader
Leveraging our core competencies in building communication solutions
in standard digital CMOS
Leader in WLAN solutions for PC, Networking and Consumer markets
Multiple p
p product lines p
provide g
growth opportunities
pp
Core PC and Networking WLAN
ROCm mobile WLAN achieving strong design win momentum
Highly competitive Fast and Gigabit Ethernet NIC, PHY & Switch products
NIC
GPS products for PNDs, handsets and PCs For GPS
Bluetooth products to address growing PC attach rates
3

4. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Highlights
Product Cycles
Single-chip 11n solutions driving mass adoption in PC and Networking
New Align™ family of value products in volume production
New WLAN SoC solution with Integrated 10/100 switch
New Ethernet LOM and PHY solutions
Platform Launches
Growing number of Netbooks being launched throughout 2009
Nintendo DSi shipping to multiple geographies
Magellan and Mio PNDs shipping with single-chip AR1511 + Orion software
Managing through Challenging Economic Environment
gg g gg
Increasingly diversified revenue stream
Disciplined operating spending with continued investment in R&D
Strong balance sheet
Strong revenue guidance*: U 15% to 20% sequentially in Q2 2009
S id * Up i ll i
*Issued April 23, 2009
4

5. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Offering Multiple Technologies Across Key Markets
g p g y
NETWORKING
PC CONSUMER
Gateways, APs, Cellular, Gaming,
Desktop, Notebook,
Routers and A/V PMP and Cameras
Netbooks and MIDs
<300m Units 200-500m Units >1B Units Market Size
Expansion
of Atheros
Technologies
GPS GPS GPS
Leverage
Key OEM
Customers
5

6. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Industry Leading Customers Choose Atheros
y g
Networking Consumer
PC OEM
ODMs
6

7. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Revenue Mix – Q1 2009
By Channel Wireless LAN by Technology
• Product launches have led to strong consumer channel growth
• Align 1x1 11n-solution shipping in PCs and Routers
g pp g
• 11g remains popular in consumer and mobile platforms
7

8. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Networking – 48% of Q1 Revenue
g Q
Strong presence in Retail, Carrier and Enterprise channels
Growing 11n adoption
Ethernet is a critical part of the platform
WLAN SoC solution with Integrated 10/100 switch shipping
Standalone Gigabit Switch in production
New high-end router features being introduced
Dual-band
D lb d
Dual-concurrent (2.4GHz and 5GHz simultaneously)
Growth opportunities
Growing 11n adoption in retail and carrier
Increased attach rates in DSL and cable gateways
I d tt h t i d bl t
Ethernet switching grows TAM
8

9. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
XSPAN in Retail/SOHO Networking:
Powering the Best 11n Products in the Market
g
D-Link DIR-615 D-Link DGL-4500
D-Link DIR-655
Linksys Wireless-N NETGEAR HD/Gaming 5GHz
Gigabit Gaming Router
Gi bit G i R t Wireless-N N t
Wi l N Networking Kit
ki
D-Link DSM-210
Apple Airport Extreme
TRENDnet
Westell UltraLine Series3 Home Gateway Wireless N Gigabit Router
9

10. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Personal Computing – 31% of Q1 Revenue
p g
Supplier to all of the top 10 PC OEMs
Strong position in the emerging Netbook segment
Leader in PC single-chip WLAN solutions
Full line of single-chip client solutions: 11g, 11a/g, Align and 11n
Gigabit and Fast Ethernet Products for PC OEMs
g
Multiple tier-1 PC OEM customers
3rd generation client LOM solution with power saving features
Growth opportunities
11n adoption in notebooks
Sub-$500 netbook market expansion
New Align product family
WLAN adoption in desktop PCs
Ethernet LOM and PHY solutions
10

11. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Full Line of Solutions for Computing Platforms
p g
High End
g Low End High End
g Low End
Notebooks Notebooks Netbooks Netbooks
Application Desktops
$800 + $400-$800 $350-$500 $250-$400
Price Range $400 +
11

12. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Strong Participation in Growing Netbook Market
g p g
45
40
40.6
35 36.3
36 3
30 31.6
25 26.7
22.0
20
15
10 11.6
5
2006 2007 2008 2009 2010 2011 2012 2013
12

13. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Consumer – 21% of Q1 Revenue
Consumer solutions driving diversification
WLAN is going into many new consumer products
Portable gaming, PNDs, media players and more
GPS chips shipping to tier one customer platforms
Single-chip GPS receiver and companion ORION software
Multiple tier-1 design wins due to p
p g performance
Bluetooth 3.0 using 802.11 as new WiFi PHY
Growth opportunities
High volume ROCm consumer wins
WLAN-enabled ROC h d t d i wins
WLAN bl d ROCm handset design i
Expanding into GPS and Bluetooth products
13

14. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Expanding Consumer Activity
Shipping WLAN to multiple tier-1 phone, PND and CE manufacturers
Designed and tested with leading platform partners
Member of Open Handset Alliance supporting platform
14

15. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Atheros GPS
Single Chip AR1511 and Orion software suite
Delivers precise navigation employing the company's Assisted GPS AR1511
Leading-edge power consumption
L di d ti
Install n Go for fast, easy implementation
Fast time to market time
Choice of hosted and standalone designs
g
GPS chips shipping to tier-1 customer platforms
15

16. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Q1 09 Financial Summary
y
Revenue of $87.9 million
Above Feb. 2 guidance of $80.6 - $86.5 million
Gross margin* of 48.1%
Slightly below Feb 2 guidance of 48 5% - 49 5%
Feb. 48.5% 49.5%
Q109 EPS* of $0.06
Above Feb. 2 guidance of $0.03 - $0.05
Solid balance sheet metrics
$289 million in total cash and short-term marketable securities
Q2 Guidance as of April 23, 2009
G id f A il 23
15% - 20% sequential revenue growth
EPS* $0.12 - $0.14
*Non-GAAP gross margin, operating expenses and EPS exclude, as applicable, non-cash stock based compensation, acquisition-related
Non GAAP non cash stock-based acquisition related
expenses, non-operating charge for impairment of long-term investments, and the related tax impact of all non-GAAP adjustments.
16

17. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Revenue Growth Track Record
500
138.1
130
472.4
472 4
450
120 121.5
114.5
417.0
400 110
101-105
100
350
98.3
90
300 87.9
301.7 80
250 70
200 60
183.5
50
169.6
150
40
100
30
87.4
50 20
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09 Q2 09*
2003 2004 2005 2006 2007 2008
17

18. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Key Metrics
y
Q1 08 Q2 08 Q3 08 Q4 08 Q1 09
( 000’s Except
Ratios )
Revenue/
$505 $516 $554 $371 $328
Employee
DSO 57 56 59 53 58
Inventory Turns 5.9 5.2 5.4 2.9 3.5
Total Cash
$230,187
$230 187 $252,574
$252 574 $274,105
$274 105 $293,758
$293 758 $288,867
$288 867
Balances1
Bl
1 Includes cash, cash equivalents and short-term marketable securities.
18

19. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Target Operating Model*
g p g
Q1 2009 Target Model
FY 2008
100.0%
100.0% 100.0%
Revenue
50.2% 48.1% 45 - 47%
Gross Margin
22.2% 27.8% 16 - 18%
R&D
13.3% 17.1% 10 - 12%
SG&A
14.7% 3.2% 17 - 19%
Operating Profit
*The Target Operating Model and the Gross Margin, R&D, SG&A and Operating Profit measures exclude stock-based
compensation and acquisition-related expenses as appropriate.
19

20. W I R E L E S S F U T U R E. U N L E A S H E D N O W .
Summary
y
Leveraging our skills in CMOS integration and wireless systems
solutions to build a large communications IC company
g y
Both technology and cost leader
Leader in WLAN solutions for Personal Computing and Networking
Managing th uncertain macro environment; b l
M i thru ti i t balancing R&D
i
investments and prudent expense management
Multiple product lines provide growth opportunities
pp p g pp
Expansion of core Wireless LAN revenue
ROCm products for mobile WLAN achieving strong design win momentum
Availability of a full line of 10/100/1000 Ethernet NIC, PHY & Switch products
NIC
Portfolio of GPS products for PNDs, handsets and PCs For GPS
Bluetooth products to address growing PC attach rates
20

21. A T H E R O S C O M M U N I C A T I O N A NNK
THS I C YOU
S, C.
WIRELESS FUTURE. UNLEASHED NOW.
© ATHEROS COMMUNICATIONS