ANADIGICS Reports Fourth Quarter 2002 Results

ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, today reported fourth quarter net sales of $18.7 million and a loss of $0.23 per share. This compares with net sales of $21.0 million and a loss of $0.81 per share in the fourth quarter of the prior year.

In the fourth quarter, wireless revenues were $11.4 million, a slight improvement over the third quarter's $11.0 million revenue. Compared with fourth quarter 2001 revenue, CDMA revenue grew $3.0 million or 41.2%. As expected, TDMA revenue declined $5.7 million or 84.0%. Broadband revenues were $7.3 million, sequentially down $2.9 million, and $0.2 million better than the fourth quarter of 2001.

For the year ended December 31, 2002, revenues of $82.6 million were down $2.2 million compared to 2001. Wireless revenues increased $12.3 million due to CDMA revenue growth of $28.5 million more than offsetting the TDMA revenue decline. Broadband revenue for 2002 declined by $14.5 million due to lower spending by telecom and cable service providers.

Cash and marketable securities totaled $155.5 million at December 31, 2002 compared with $156.5 million at September 28, 2002.

"In 2002 we repositioned the Company as a major CDMA PA provider with $28.5 million year over year CDMA business growth. At the same time, we aligned our cost structure with the market conditions as demonstrated by the significant reduction in the loss per share compared to the fourth quarter of the prior year" remarked Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "Looking ahead, 2003 will provide us with further opportunities with the launch of our new GSM portfolio as we continue to increase our CDMA market share."

HIGHLIGHTS OF THE QUARTER

ANADIGICS Develops Taiwan Distribution Center to Support Growing Asian Customer Base

On January 28, 2003, the Company announced the development of an Asian distribution center through its partnership with Taiwan-based Universal Communications Technology Inc (UCOMM). The local distribution point will enable ANADIGICS to reduce cycle times by minimizing handling and transportation time and expenses, creating a more efficient product flow to its growing Asian customer base. The announcement follows just a year after ANADIGICS' agreement with UCOMM for the offshore outsourcing of its production RF testing operations.

ANADIGICS Ships 100 Millionth Tuner IC to Leading Cable Set-Top Box Manufacturers

On October 29, 2002, the Company announced it had shipped its 100 millionth tuner integrated circuit (IC) to the world's leading cable set-top box manufacturers. ANADIGICS' product line of radio frequency (RF) tuner IC chips are used by OEMs to produce complete analog/digital tuner solutions for video set-top boxes.

ANADIGICS Semiconductor Technology Innovations Rewarded with Four New Patents

On November 18, 2002, the Company was awarded four new patents for pioneering advancements in RFIC (radio frequency integrated circuit) production techniques, test technology, and electronic design. Patents were awarded to ANADIGICS for an electrical contactor for automatic testing of RF chips, which enhances the Company's RF testing capabilities, and for a new amplifier bias adjustment circuit which offers improved quality for cable TV signals. Additionally, the Company received two patents for innovations in GaAs semiconductor manufacturing technology.

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 (800) 642-1687 (available until February 6th)

Three Months Ended December 31, 2002

                                        As Reported   Adjustments   Adjusted

     Net sales                              $18,734       $-         $18,734
     Cost of sales                           16,240      (58)(a)      16,182
     Gross profit                             2,494       58           2,552
     Research and development expenses        6,879      -             6,879
     Selling and administrative expenses      5,002     (270)(a)       4,732
     Asset impairment charges                 2,310   (2,310)(b)         -
     Operating loss                         (11,697)   2,638          (9,059)
     Interest income                          1,350      -             1,350
     Interest expense                          (948)     -              (948)
     Other income                                 4      -                 4
     Loss before income taxes               (11,291)   2,638          (8,653)
     Benefit from income taxes               (4,307)   4,307 (c)         -
     Net loss                               $(6,984) $(1,669)        $(8,653)


     Basic and diluted loss per share        $(0.23)                  $(0.28)

     Weighted average common and
         dilutive securities
         outstanding                     30,607,663               30,607,663

(a) Amortization of acquisition accounting-related assets ($58 in COGS,
$270 in S&A).
(b) Impairment on fiber operating unit's process technology and covenant
not to compete.
(c) Tax refund received under the Job Creation and Workers Assistance Tax
Act of 2002.

Three Months Ended            Year Ended
                               Dec. 31,   Dec. 31,      Dec. 31,    Dec. 31,
                               2002           2001         2002        2001
                            (unaudited)  (unaudited)

     Net sales                $18,734      $21,008      $82,564     $84,765
     Cost of sales             16,240       22,060       75,302      87,697
     Gross profit (loss)        2,494       (1,052)       7,262      (2,932)
     Research and
      development expenses      6,879        8,263       29,742      37,764
     Selling and
      administrative
      expenses                  5,002        6,401       21,400       27,282
     Restructuring and
      other charges               -          1,680        5,001        3,775
     Asset impairment
      charges                   2,310        5,127        8,641       10,433
     Goodwill impairment
      charge                      -            -          8,043          -
     Purchased in-process
      research and
      development                 -            -           -           3,800
     Operating loss           (11,697)     (22,523)     (65,565)     (85,986)
     Interest income            1,350        1,331        6,309        6,930
     Interest expense            (948)        (488)      (5,119)        (626)
     Impairment on
      investments                 -         (3,061)        (390)      (3,061)
     Gain on repurchase of
      notes                       -            -         12,581          -
     Other income
      (expense)                     4            7            1          (39)
     Loss before income
      taxes                   (11,291)     (24,734)     (52,183)     (82,782)
     (Benefit) provision
      for income taxes         (4,307)         -         (4,307)      24,338
     Net loss before
      cumulative effect of
      accounting change        (6,984)     (24,734)     (47,876)    (107,120)
     Cumulative effect of
      accounting change           -            -         (8,010)         -
     Net loss                 $(6,984)    $(24,734)    $(55,886)   $(107,120)

     Basic and diluted
      loss per share
     Net loss before
      cumulative effect of
      accounting change        $(0.23)      $(0.81)      $(1.57)      $(3.54)

     Net loss                  $(0.23)      $(0.81)      $(1.83)      $(3.54)

     Weighted average
      common and
         dilutive
          securities
          outstanding      30,607,663   30,419,948   30,587,032   30,248,476

 


                                                December 31,     December 31,
                                                   2002              2001
     Assets

     Current assets:
         Cash and cash equivalents                $24,343           $63,102
         Marketable securities                     74,038            55,364
         Accounts receivable                        9,016            10,200
         Inventory                                 13,277            14,661
         Prepaid expenses and other
          current assets                            4,600             6,635
     Total current assets                         125,274           149,962

     Marketable securities                         57,137            81,629

     Property and equipment, net                   68,600            90,483

     Goodwill and other intangibles, net
      of amortization                                 -              19,443
     Other assets                                   4,660             5,397
                                                 $255,671          $346,914

     Liabilities and stockholders'
      equity

     Current liabilities:
         Accounts payable                          $7,434            $9,115
         Accrued liabilities                        4,733             6,549
         Accrued restructuring costs                2,956             1,898
         Current maturities of long-term
          debt                                        -                 244
         Current maturities of capital
          lease obligations                           -                  94
     Total current liabilities                     15,123            17,900

     Other long-term liabilities                    2,760             2,378
     Long-term debt, less current
      portion                                      66,700           100,000

     Stockholders' equity                         171,088           226,636
                                                 $255,671          $346,914