ANADIGICS Announces Third Quarter 2009 Results

WARREN, NJ -- (MARKET WIRE) -- Oct 27, 2009 -- ANADIGICS, Inc. (NASDAQ: ANAD), a leading provider of semiconductor solutions in the broadband wireless and wireline communications markets, reported third quarter 2009 net sales of $36.7 million, an increase of 16.7% sequentially and a decrease of 36.8% from the third quarter of 2008. As of October 3, 2009, cash, cash equivalents and short and long-term marketable securities totaled $123.4 million. On October 15, 2009, the Company repaid $38.0 million upon the maturity of our Convertible Notes.

GAAP net loss for the third quarter of 2009 was $12.9 million, or ($0.21) per share. Non-GAAP net loss for the third quarter of 2009 was $6.4 million, or ($0.10) per share. Non-GAAP financial measures exclude charges of $3.9 million or ($0.06) per share associated with a settlement on October 26, 2009 of a commercial dispute with a customer, $2.9 million, or ($0.05) per share associated with stock-based compensation and a tax refund of $0.3 million. The details of the Non-GAAP adjustments are available in the accompanied financial schedules.

"Our positive third quarter results are evidence of the successful execution on our stated business initiatives, resulting in revenue and non-GAAP loss per share exceeding our guidance. Our revenue during the quarter benefited from continued growth in our 3G wireless products as well as an earlier than expected recovery in both our cable TV and WLAN revenue," remarked Mario Rivas, President and Chief Executive Officer of ANADIGICS. "Our commitment to operational excellence has enabled us to maintain high performance metrics at our Fab in Warren, NJ. We recently announced our foundry agreement with WIN Semiconductors, which is a key element of our hybrid manufacturing strategy and is expected to provide expanded production capabilities by the fourth quarter 2010 to ensure fulfillment of future demand. Additionally, with an unprecedented number of new products in our development pipeline, I am confident that we are well positioned for growth in the coming year."

Outlook for the Fourth Quarter 2009

Net sales for the fourth quarter of 2009 are estimated to increase sequentially over the third quarter of 2009 by approximately 5% to 8%. Net loss per share on a GAAP basis for the fourth quarter is expected to be approximately ($0.16) to ($0.18). Non-GAAP loss per share, excluding non-cash stock compensation and management separation expense, is expected to be approximately ($0.08) to ($0.10).

The statements regarding the Company's anticipated future performance are forward looking and actual results may differ materially. Please see safe harbor statement at the end of this press release.

This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP net income or loss and non-GAAP income or loss per share. Management uses non-GAAP net income or loss and non-GAAP income or loss per share to evaluate the company's operating and financial performance in light of business objectives, for planning purposes, when publicly providing our business outlook and to facilitate period-to-period comparisons. ANADIGICS believes that these measures are useful to investors because they enhance investors' ability to review the company's business from the same perspective as the company's management and facilitate comparisons of this period's results with prior periods. These non-GAAP measures exclude charges related to stock-based compensation, restructuring charges, impairment of marketable securities, the refund of certain R&D tax credits and non-comparative charges in 2008 and 2009 resulting from the settlement of a commercial dispute with a customer, management separations, cancelations and impairments on equipment and inventory reserves associated with reduced demand. Non-GAAP measures are used by some investors when assessing the ongoing operating and financial performance of our Company. These financial measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Management acknowledges that stock-based compensation is a recurring cost and is an important part of our employee's compensation and impacts their performance. However the expense is non-cash in nature and there are various valuation methodologies and assumptions used in determining stock-based compensation that may be unrelated to operations, such as volatility and current interest rates. The presentation of the additional information should not be considered a substitute for net income or loss or income or loss per share prepared in accordance with GAAP. The primary material limitations associated with the use of non-GAAP measures as compared to the most directly comparable GAAP financial measures are (i) they may not be comparable to similarly titled measures used by other companies in ANADIGICS industry, and (ii) they exclude financial information that some may consider important in evaluating our performance.

Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP measures as compared to the most directly comparable GAAP financial measures are (i) they may not be comparable to similarly titled measures used by other companies in ANADIGICS industry, and (ii) they exclude financial information that some may consider important in evaluating our performance. We compensate for these limitations by providing reconciliations of reported net income or loss and income or loss per share to non-GAAP net income or net loss and non-GAAP income or loss per share, respectively, within this press release.

Conference Call

ANADIGICS' senior management will conduct a conference call today at 5:00 PM Eastern Time. A live audio Webcast will be available at www.anadigics.com/investors. A recording of the call will be available approximately two hours after the end of the call on the ANADIGICS Web site or by dialing 800-642-1687 conference ID 34535466 (available until November 3, 2009).

Recent Highlights

October 26, 2009 - ANADIGICS New 4G Power Amplifier Delivers Superior Performance for Rapidly-Growing Mobile WiMAX Marketplace

October 7, 2009 - ANADIGICS Expands Global Presence with New Tokyo, Japan Sales Office

October 5, 2009 - ANADIGICS and WIN Semiconductors Announce Strategic Foundry Relationship

September 1, 2009 - ANADIGICS' New EDGE Power Amplifier Delivers 3G Performance with Superior Efficiency

August 25, 2009 - Intermec Leverages ANADIGICS' HELP3™ Power Amplifiers for WAN 3.75G Radio in new CN50 Rugged Mobile Computer

July 29, 2009 - ANADIGICS Launches Traditional and Simplified Chinese Websites

About ANADIGICS, Inc.

ANADIGICS, Inc. (NASDAQ: ANAD) is a leading provider of semiconductor solutions in the growing broadband wireless and wireline communications markets. The Company's products include power amplifiers, tuner integrated circuits, active splitters, line amplifiers, and other components, which can be sold individually or packaged as integrated radio frequency and front end modules.

Safe Harbor Statement

Except for historical information contained herein, this press release contains projections and other forward-looking statements (as that term is defined in the Securities Exchange Act of 1934, as amended). These projections and forward-looking statements reflect the Company's current views with respect to future events and financial performance and can generally be identified as such because the context of the statement will include words such as "believe," "anticipate," "expect," or words of similar import. Similarly, statements that describe our future plans, objectives, estimates or goals are forward-looking statements. No assurances can be given, however, that these events will occur or that these projections will be achieved and actual results and developments could differ materially from those projected as a result of certain factors. Important factors that could cause actual results and developments to be materially different from those expressed or implied by such projections and forward-looking statements include those factors detailed from time to time in our reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2008, and those discussed elsewhere herein.


ANADIGICS, INC.
Consolidated Statements of Operations
(Amounts in thousands, except per share amounts, unaudited)


                          Three months ended         Nine months ended
                       ------------------------   ------------------------
                        October 3, September 27,  October 3,  September 27,
                           2009        2008          2009         2008
                       -----------  -----------   -----------  -----------

Net sales              $    36,716  $    58,065   $    98,674  $   212,927
Cost of sales               32,246       44,790        90,194      143,127
                         -----------    -----------      -----------    -----------
Gross  profit                                  4,470              13,275                  8,480              69,800
Research  and
  development  expenses              11,025              12,931                33,026              42,059
Selling  and
  administrative
  expenses                                        6,315              14,576                20,085              32,897
Restructuring  charge                          -                        -                  2,598                        -
                                              -----------    -----------      -----------    -----------
Operating  loss                          (12,870)          (14,232)            (47,229)            (5,156)
Interest  income                                184                    978                  1,030                4,197
Interest  expense                            (584)                (592)              (1,766)            (1,774)
Other  income  (expense)                    89              (1,622)              (1,456)            (2,758)
                                              -----------    -----------      -----------    -----------
Loss  before  income
  taxes                                          (13,181)          (15,468)            (49,421)            (5,491)
    Benefit  from  income
      taxes                                            (321)                      -                    (321)                      -
                                              -----------    -----------      -----------    -----------
Net  loss                              $      (12,860)  $      (15,468)    $      (49,100)  $        (5,491)
                                              ===========    ===========      ===========    ===========

Net  loss  per  share
                                              -----------    -----------      -----------    -----------
Basic                                    $          (0.21)  $          (0.26)    $          (0.79)  $          (0.09)
                                              ===========    ===========      ===========    ===========
Diluted                                $          (0.21)  $          (0.26)    $          (0.79)  $          (0.09)
                                              ===========    ===========      ===========    ===========

Basic  shares
  outstanding                                62,617              60,509                62,189              59,949
                                              ===========    ===========      ===========    ===========
Basic  &  dilutive
  shares  outstanding                  62,617              60,509                62,189              59,949
                                              ===========    ===========      ===========    ===========

Unaudited  Reconciliation  of  GAAP  to  Non-GAAP  Financial  Measures

GAAP  net  loss                    $      (12,860)  $      (15,468)    $      (49,100)  $        (5,491)
Stock  compensation
  expense
      Cost  of  sales                              601                    822                  1,943                2,574
      Research  and
        development                            1,167                1,470                  3,715                5,271
      Selling  and
        administrative                      1,144                1,567                  3,832                5,361
Other  non-GAAP
  adjustments
      Cost  of  sales  (1)                  3,879                4,216                  5,289                4,216
      Selling  and
        administrative  (2)                      -                5,729                          -                5,729
Auction  rate
  securities  (recovery)
  impairment                                        (35)              1,627                  1,530                3,064
Restructuring  charge                          -                        -                  2,598                        -
Benefit  from  income
  taxes                                                (321)                      -                    (321)                      -
                                              -----------    -----------      -----------    -----------
Non-GAAP  net  (loss)
  income                                $        (6,425)  $              (37)    $      (30,514)  $        20,724
                                              ===========    ===========      ===========    ===========

Non-GAAP  (loss)
  earnings  per  share  *
Basic                                    $          (0.10)  $                  -      $          (0.49)  $            0.35
                                              ===========    ===========      ===========    ===========
Diluted                                $          (0.10)  $                  -      $          (0.49)  $            0.35
                                              ===========    ===========      ===========    ===========

(*)  Calculated  using  related  GAAP  shares  outstanding


(1)  Three  and  nine  months  ended  October  3,  2009  include  $3,879  for  the
        October  26,  2009  settlement  of  a  commercial  dispute  with  a  customer.
        The  nine  months  ended  October  3,  2009  also  includes  $1,410  inventory
        reserves  charge  for  products  with  reduced  demand  recorded  in  first
        quarter  of  2009.  Three  and  nine  months  ended  September  27,  2008
        included  manufacturing  equipment  purchase  cancellation  charges  of
        $1,860  (primarily  cash),  a  non-cash  write  down  of  certain  manufacturing
        assets  held  for  sale  of  $849,  inventory  reserves  for  products  with
        lower  demand  of  $1,210  and  separation  and  related  costs.
(2)  Three  and  nine  months  ended  September  27,  2008  included  separation  and
        transition  costs  of  $5,729  related  to  CEO  resignation  ($3,539  cash;
        $2,190  non-cash).




ANADIGICS,  INC.
Condensed  Consolidated  Balance  Sheets
(Amounts  in  thousands)

                                                                                                  October  3,      December  31,
                                                                                                        2009                    2008
                                                                                                -------------  -------------
Assets                                                                                        Unaudited

Current  assets:
      Cash  and  cash  equivalents                                        $          115,025  $          123,552
      Marketable  securities                                                                        -                13,340
      Accounts  receivable                                                                  23,224                25,384
      Inventory                                                                                      21,465                33,578
      Prepaid  expenses  and  other  current  assets                        3,892                  3,121
                                                                                                -------------  -------------
Total  current  assets                                                                    163,606              198,975

Marketable  securities                                                                      8,410                  8,832
Plant  and  equipment,  net                                                              86,041                95,671
Other  assets                                                                                            282                      299
                                                                                                -------------  -------------
                                                                                                $          258,339  $          303,777
                                                                                                =============  =============

Liabilities  and  stockholders'  equity

Current  liabilities:
      Accounts  payable                                                          $            12,758  $            18,267
      Accrued  liabilities                                                                  11,105                13,203
      Accrued  restructuring  costs                                                        184                  1,165
      Convertible  notes                                                                      38,000                38,000
                                                                                                -------------  -------------
Total  current  liabilities                                                            62,047                70,635

Other  long-term  liabilities                                                          4,368                  3,134

Stockholders'  equity                                                                    191,924              230,008
                                                                                                -------------  -------------
                                                                                                $          258,339  $          303,777
                                                                                                =============  =============

*  The  condensed  balance  sheet  at  December  31,  2008  has  been  derived  from
    the  audited  financial  statements  at  such  date  but  does  not  include  all
    the  information  and  footnotes  required  by  U.S.  generally  accepted
    accounting  principles  for  complete  financial  statements.

 

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