ANADIGICS Reports Fourth Quarter 2001 Results
January 30, 2002
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ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, today reported net sales of $21.0 million and a loss of $0.43 per share (excluding special charges and amortization of intangibles) for the fourth quarter ended December 31, 2001. These results were better than anticipated on the strength of increased demand in the 2001 fourth quarter for its wireless products and through continued cost containment measures. Net sales and EPS loss in the 2000 fourth quarter were $30.7 million and $0.01, respectively. The Company is on track with its initiatives to decrease manufacturing costs and operating expenses. In the 2001 fourth quarter, adjusted total operating expenses were reduced to $13.1 million, a continued improvement from the second and third quarter totals of $16.4 million and $15.4 million, respectively. As announced yesterday, ANADIGICS has formed a strategic alliance with Universal Communication Technology, Inc. of Taiwan for the outsourcing of its production RF testing operations to Southeast Asia, which will add considerable efficiencies to the Company's device manufacturing and further reduce product cycle times and manufacturing costs. In the fourth quarter, special charges of $10.7 million were recorded, including non-cash related charges of $9.5 million, resulting from the write-down of impaired assets and certain equity investments, and cash-related charges of $1.2 million. Including these special charges and amortization of intangibles, the net loss for the fourth quarter was $24.7 million or $0.81 per share. "We are very pleased to report a 29% sequential increase in our revenues and a sequential EPS improvement of nine cents per share in the fourth quarter," remarked Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "Our efforts to grow our wireless business while controlling costs has positioned ANADIGICS for a recovery in 2002. Additionally, we are heartened to see signs of a recovery in the cable and broadcast markets and are fully booked to meet our first quarter cable revenue target." In the fourth quarter, wireless product line revenues were $13.9 million, up a record 128% sequentially from the third quarter and double the year-ago fourth quarter. Broadband revenues were $7.1 million, primarily reflecting lower orders for infrastructure ICs compared to the prior quarter. The Company's balance sheet was further strengthened with the completion of a convertible debt offering on November 27, 2001. Cash and marketable securities totaled $200 million at December 31, 2001. "We continued to increase our customer base and have secured a number of new CDMA design wins which should lead to production ramp and revenue in 2002," continued Dr. Bastani. "We are making inroads into the GSM/GPRS market with our highly integrated PowerPlexer™ module and we are addressing new wireless infrastructure opportunities with our gain block products. We continue to expand share at our leading cable customers through new design wins; further solidifying our market leadership position." OUTLOOK The Company is 100% booked to meet a first quarter revenue forecast of approximately $17.5 million. Wireless revenues of $8.0 million are expected, a greater than 25% increase year-on-year, reflecting the Company's new CDMA customer base. Broadband revenues are estimated at $9.5 million. The EPS loss for the first quarter, excluding any special charges, is anticipated to improve from the fourth quarter to ($0.40) per share. HIGHLIGHTS OF THE QUARTER In the fourth quarter, wireless product line revenues were $13.9 million, up a record 128% sequentially from the third quarter and double the year-ago fourth quarter. Broadband revenues were $7.1 million, primarily reflecting lower orders for infrastructure ICs compared to the prior quarter. The Company's balance sheet was further strengthened with the completion of a convertible debt offering on November 27, 2001. Cash and marketable securities totaled $200 million at December 31, 2001. "We continued to increase our customer base and have secured a number of new CDMA design wins which should lead to production ramp and revenue in 2002," continued Dr. Bastani. "We are making inroads into the GSM/GPRS market with our highly integrated PowerPlexer™ module and we are addressing new wireless infrastructure opportunities with our gain block products. We continue to expand share at our leading cable customers through new design wins; further solidifying our market leadership position."
DESIGN WIN - Wireless PA Modules for Sewon Telecom
DESIGN WIN - Wireless PA Modules for Standard Telecom
DESIGN WINS - Power Amplifier Chipsets for Ericsson
STRATEGIC ALLIANCE - Universal Communications Technology, Inc.
NEW PRODUCT - Gain Block Amplifier for Infrastructure Systems NEW PRODUCT - Next-Generation GSM/GPRS Module - PowerPlexer™On December 10, 2001, the Company introduced the AWT6200 PowerPlexer™, the first in a new family of integrated RF modules for GSM/GPRS wireless handsets. The PowerPlexer™ integrates ANADIGICS' leading InGaP HBT power amplifiers, GaAs pHEMT multi-throw RF antenna switch as well as integrated passives and analog control integrated circuits in a small module package. By delivering all of these RF functions in one compact module, the PowerPlexer™ significantly simplifies handset designs while providing excellent power efficiency and reducing handset sizes, lowering costs and reducing time-to-market. CONFERENCE CALL ANADIGICS senior management will conduct a conference call today at 8:30 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 (402) 220-9186 (available until February 6th).
ANADIGICS, INC. Three Months Ended December 31, 2001
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As Reported Adjustments Adjusted
------------ --------------- -------------
Net sales $ 21,008 $ - $ 21,008
Cost of sales 22,060 (208)(1,2) 21,852
------------ --------------- ------------
Gross (loss) profit (1,052) (208) (844)
Research and
development
expenses 8,263 (420) (2) 7,843
Selling and
administrative
expenses 6,401 (1,192) (1,2) 5,209
Restructuring and
other charges 1,680 (1,680) (3) -
Asset impairment
charges 5,127 (5,127) (4) -
------------ --------------- ------------
Operating loss (22,523) (8,627) (13,896)
Interest
income, net 843 - 843
Impairment on
investments (3,061) (3,061) (5) -
Gain on sale
of equipment 7 - 7
------------ --------------- ------------
Loss before
income taxes (24,734) (11,688) (13,046)
Provision for
income taxes - - -
------------ --------------- ------------
Net loss $ (24,734) $ (11,688) $ (13,046)
============ =============== ============
Basic and diluted
loss per share $ (0.81) $ (0.43)
============ ==========
Weighted average
common shares
outstanding 30,419,948 30,419,948
============ ===========
(1) Includes the amortization of acquisition-related goodwill and
intangible assets ($58 in COGS and $912 in S&A).
(2) Comprised of certain professional fees and employee compensation
related to cost reduction initiatives ($150 in COGS, $420 in R&D and
$280 in SG&A).
(3) Comprised of lease-related charges and workforce reduction-related
severance costs.
(4) Comprised of asset impairments on certain manufacturing and
research equipment.
(5) Comprised of write-downs to market of certain equity investments.
ANADIGICS, INC. Three Months Ended Year Ended
------------------------------- -----------------------------
Dec. 31, 2001 Dec. 31, 2000 Dec. 31, 2001 Dec. 31, 2000
-------------- --------------- ------------- -------------
(unaudited) (unaudited)
Net sales $21,008 $ 30,671 $ 84,765 $ 172,268
Cost of
sales 22,060 19,693 87,697 89,471
----------- ---------- ---------- ------------
Gross (loss)
profit (1,052) 10,978 (2,932) 82,797
Research and
development
expenses 8,263 8,977 37,764 39,799
Selling and
administrative
expenses 6,401 6,317 27,282 26,202
Restructuring
and other
charges 1,680 - 3,775 -
Asset impairment
charges 5,127 - 10,433 -
Purchased
in-process R&D - - 3,800 -
----------- ---------- ---------- ------------
Operating
(loss)
income (22,523) (4,316) (85,986) 16,796
Interest
income, net 843 2,645 6,304 10,521
Impairment on
investments (3,061) - (3,061) -
Gain (loss)
on sale of
equipment 7 (75) (39) 1,279
----------- ---------- ---------- ------------
(Loss) income
before income
taxes (24,734) (1,746) (82,782) 28,596
Provision
(benefit) for
income taxes - (1,415) 24,338 9,704
----------- ---------- ---------- ------------
Net (loss)
income $(24,734) $ (331) $ (107,120) $ 18,892
============ =========== =========== ============
Basic (loss)
earnings
per share $ (0.81) $ (0.01) $ (3.54) $ 0.64
============ =========== =========== ============
Weighted
average common
shares
outstanding 30,419,948 29,952,717 30,248,476 29,712,879
=========== =========== ========== ===========
Diluted (loss)
earnings
per share $ (0.81) $ (0.01) $ (3.54) $ 0.60
=========== ============ ========== ===========
Weighted
average
common and
dilutive
securities
outstanding 30,419,948 29,952,717 30,248,476 31,519,889
=========== =========== ========== ===========
ANADIGICS, INC. December 31, 2001 December 31, 2000
---------------------- ------------------
Assets
Current assets:
Cash and cash equivalents $63,102 $95,116
Marketable securities 55,364 53,254
Accounts receivable 10,200 21,794
Inventory 14,661 22,969
Prepaid expenses and
other current assets 5,635 3,475
Deferred taxes - 3,035
--------------- ------------------
Total current assets 148,962 199,643
Marketable securities 81,629 17,791
Property and equipment:
Equipment and furniture 128,903 137,819
Leasehold improvements 34,207 32,767
Projects in process 17,702 19,083
Less accumulated depreciation
and amortization 89,329 83,034
--------------- ---------------
91,483 106,635
Goodwill and other intangibles,
net of amortization 19,443 -
Other assets 5,397 5,302
Deferred taxes - 23,102
--------------- ---------------
$346,914 $352,473
=============== ===============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $9,115 $10,985
Accrued liabilities 6,549 6,824
Accrued restructuring costs 1,898 597
Current maturities
of long-term debt 244 1,000
Current maturities of
capital lease obligations 94 250
--------------- ---------------
Total current liabilities 17,900 19,656
Other long-term liabilities 2,378 1,985
Long-term debt,
less current portion 100,000 2,000
Stockholders' equity 226,636 328,832
--------------- ---------------
Total stockholders' equity
and liabilities $346,914 $352,473
=============== =============== ANADIGICS, Inc. (Nasdaq: ANAD) 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. Actual results could differ materially from the Company's forward-looking statements. 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, including the statements in this press release regarding revenue expectations, cost reduction initiatives, and strategic alternatives, are forward-looking statements. |
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