For me it started working on 4.4 kernel only with firmware 1.158. You may want 
to try that (there's 1.159 currently available): 
http://packages.ubuntu.com/yakkety/all/linux-firmware/download
Don't worry that it's in 'yakkety' repo, should work on xenial too.
If that doesn't help, you can try kernel 4.5 or later.

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https://bugs.launchpad.net/bugs/1520343

Title:
  Qualcomm Atheros wireless card [168c:003e] (rev 32) not supported

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