ANADIGICS Reports First Quarter 2001 Results
April 23, 2001
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ANADIGICS, Inc. today reported net sales of $28.5 million for the first quarter ended March 31, 2001, compared with $43.0 million reported in the first quarter of 2000. Sequentially, net sales were down 7% from the fourth quarter 2000, in line with expectations. The company reported a net loss of $4.6 million and a loss per share of $0.15, compared with net income of $5.5 million and diluted earnings per share of $0.18 reported in the prior year. The net loss reported in the first quarter included a pretax inventory charge of $3.5 million, predominantly in the datacom fiber products. Excluding the inventory charge, the net loss was $2.3 million or $0.08 per share. Gross margin in the first quarter was 25.6% (excluding the inventory charge, gross margin was 37.9%). "Business conditions have remained soft throughout the communications markets, particularly within broadband," remarked Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "However, we believe the Company's outlook remains positive as we continue to invest in new products." In the quarter, Broadband revenues were $22.2 million (cable: $19.1 million and fiber: $3.1 million), representing a 13% increase from the year-ago quarter and a 7% decline from the fourth quarter. Wireless revenues were $6.3 million, down 73% from the year-ago quarter and 9% from the prior quarter. "Design win activity across all product lines is strong and we are optimistic that these new products will be the major drivers of future growth," continued Dr. Bastani. "In wireless, our InGaP HBT GSM and CDMA power amplifier module design activity momentum has increased with handset manufacturers in Asia. In fiber, we completed the acquisition of Telcom Devices Corporation, which further increases ANADIGICS' IC content in the fiber optical component market. In cable, the number of customers requesting samples of the PicoTuner™ has more than doubled since last quarter." The Company's balance sheet remains strong. Cash and marketable securities were $163 million at March 31, 2001 before the $28 million purchase acquisition of Telcom Devices on April 2. Days sales outstanding was 53 days (versus 60 days reported last quarter), an improvement of 7 days.
OUTLOOK
Highlights of the Quarter
NEW PRODUCT - InGaP HBT TIA for OC-192 Fiber Networks
NEW PRODUCT - Broadband Linear Amplifier ANADIGICS' senior management will conduct a conference call today at 10:00 AM Eastern time. A live audio Webcast will be available at www.anadigics.com. 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 (pass code 670744).
ANADIGICS, INC. Three Months Ended
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Mar 31, 2001 April 2, 2000
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(unaudited) (unaudited)
Net sales $ 28,520 $ 43,005
Cost of sales 21,205 21,833
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Gross profit 7,315 21,172
Research and development expenses 10,051 9,789
Selling and administrative expenses 6,640 6,137
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Operating (loss) income (9,376) 5,246
Interest income, net 2,362 2,499
(Loss) gain on sale of equipment (60) 1,049
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(Loss) Income before income taxes (7,074) 8,794
(Benefit) provision for income taxes (2,476) 3,254
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Net (loss) income $ (4,598) $ 5,540
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Basic (loss) earnings per share $ (0.15) $ 0.19
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Weighted average common
shares outstanding 30,063,509 29,277,268
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Diluted (loss) earnings per share $ (0.15) $ 0.18
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Weighted average common and
dilutive securities outstanding 30,063,509 31,629,984
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ANADIGICS, INC. March 31, 2001 December 31, 2000(a)
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Assets (unaudited)
Current assets:
Cash and cash equivalents $92,606 $95,116
Marketable securities 42,705 53,254
Accounts receivable 16,682 21,794
Inventory 22,774 22,969
Prepaid expenses and other
current assets 4,843 3,475
Deferred taxes 3,035 3,035
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Total current assets 182,645 199,643
Marketable securities 27,864 17,791
Property and equipment:
Equipment and furniture 134,757 137,819
Leasehold improvements 33,144 32,767
Projects in process 16,016 19,083
Less accumulated depreciation and
amortization 81,004 83,034
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102,913 106,635
Other assets 5,253 5,302
Deferred taxes 25,608 23,102
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$344,283 $352,473
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Liabilities and stockholders'
equity
Current liabilities:
Accounts payable $7,506 $10,985
Accrued liabilities 6,266 6,824
Accrued restructuring costs 521 597
Current maturities of long-term
debt 1,000 1,000
Current maturities of capital
lease obligations 140 250
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Total current liabilities 15,433 19,656
Capital lease obligations,
less current portion
Other long-term liabilities 2,084 1,985
Long-term debt, less current
portion 1,750 2,000
Stockholders' equity
Total stockholders' equity 325,016 328,832
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$344,283 $352,473
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(a) The condensed balance sheet at December 31, 2000 has been ANADIGICS, Inc. designs and manufactures radio frequency integrated circuit (RFIC) solutions for growing broadband and wireless communications markets. The Company's innovative high frequency RFICs enable manufacturers of communications equipment to enhance overall system performance, and reduce manufacturing cost and time to market. By utilizing state-of-the-art manufacturing processes for its RFICs, ANADIGICS achieves the high-volume and cost-effective products required by leading companies in its targeted high-growth communications markets. ANADIGICS was the first GaAs IC manufacturer to receive ISO 9001 certification. Except for historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, order rescheduling or cancellation, changes in estimated product lives, timely product and process development, individual product pricing pressure, variation in production yield, difficulties in obtaining components and assembly services needed for production of integrated circuits, change in economic conditions of the various markets the Company and its customers serve, as well as other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including the report on Form 10-K for the year ended December 31, 2000. Forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company "believes", "anticipates", "expects", or words of similar import. Similarly, statements that describe the Company's future plans, objectives, estimates, or goals are forward-looking statements. |
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