Atheros Communications (ATHR) shares are trading sharply lower in late trading despite better-than-expected Q2 results. The company also announced an agreement to acquire Opulan Technologies for at least $72 million in cash.
For the quarter, ATHR posted revenue of $238.2 million and non-GAAP EPS of 67 cents; the Street had been expecting $235.7 million and 64 cents. Revenue was up 11% sequentially, and 112% from a year ago.
Opulan is a privately held Shanghai-based provider of passive optical networking and broadband access aggregation solutions. With the deal, the company adds 111 employees in Shanghai and Beijing.
The company could pay additional cash to Opulan holders depending on performance over the first 12 months after closing.
ATHR in late trading is down $2.62, or 8.6%, to $27.84.
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