ANADIGICS Reports Fourth Quarter 2003 Results
January 28, 2004
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ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, today reported fourth quarter revenues of $23.3 million, representing a 31.5% improvement from the prior quarter. The net loss per share improved to $0.39 compared with $0.41 reported in the prior quarter. Wireless revenues in the quarter were $14.5 million, an increase of 52.7% over the prior quarter and 26.7% over the prior year quarter. The strong revenue growth resulted from increased customer demand for the Company's CDMA power amplifier modules and the Company's expanded market share penetration with existing strategic customers. These include such popular models as LG's VX6000, VX 4400, VX 3100, Kyocera's Phantom, Blade, Rave, and Audiovox's CMD8400. During the quarter the company commenced production shipments of GSM power amplifier modules to two Asian ODMs. The Company approximates its CDMA power amplifier market share at 25% in the fourth quarter. Broadband revenues were $8.8 million, an increase of 7.1% over prior quarter and 21.3% over the prior-year quarter. The growth resulted from increased shipments of WLAN power amplifiers and tuner ICs for set-top boxes. "The fourth quarter was a strong period for ANADIGICS in which we significantly grew our CDMA market share and executed flawlessly to achieve strategic design wins and production orders for our new GSM handset and WLAN products", said Dr. Bami Bastani, President & CEO of ANADIGICS, Inc. "In 2003, ANADIGICS introduced differentiated products and established strong relationships with leading OEMs, ODMs and tier-one reference design providers to enter the large GSM handset and the growing WLAN market. As a result, we have now tripled our served available market, from one year ago, to more than one billion dollars thus setting the stage for a strong 2004." The Company's gross profit improved to $2.3 million or 10% reflecting the increased revenue and utilization of the Company's wafer fabrication facility. Operating expenses were $14.2 million. The operating expenses include (1) certain acquisition-related costs pertaining to the purchase of the Tavanza CDMA handset power amplifier business from Celeritek; (2) a reclassification of certain fixed allocation costs from Cost of Sales to below-the-line operating expenses; and, (3) certain expenses resulting from strategic initiatives implemented by the Company including (a) the establishment of a new CDMA design center in San Jose, California servicing new Tier 1 handset customer opportunities; (b) the opening of new application centers in Taipei, Taiwan, and Seoul, Korea servicing revenue opportunities with ODM handset customers; and, (c) accelerated R&D investments primarily in GSM to further fuel 2004 revenue opportunities. Included in the fourth quarter earnings loss were (1) acquisition-related costs of $0.5 million or approximately $0.02 per share pertaining to the purchase of the Tavanza business and (2) offsetting financial adjustments including (a) a restructuring charge of $0.3 million; (b) a tax benefit of $0.4 million. The Company's Cash position (including marketable securities) remains strong totaling $121.6 million at December 31, 2003. Cash used in the quarter was $6.7 million and included the purchase of the Tavanza business. Business Outlook The Company is resuming quarterly financial guidance, effective today, due to improved order visibility. As such, for the first quarter of 2004, the Company anticipates revenue of approximately $19 - $21 million and expects an earnings loss per share of approximately $0.41 - $0.43. ANADIGICS is positive about the growth prospects for each of its served markets and the Company believes its strategic initiatives will continue to provide gross margin and operating expense improvements and anticipated revenue growth to favorably impact the financial results in 2004. Highlights of the Quarter
ANADIGICS Receives Production Orders for GSM/GPRS Power Amplifier Modules from Two GSM Handset Manufacturers
ANADIGICS Power Amplifier Selected for Three Major GSM/GPRS Reference Designs
ANADIGICS Introduces 7mm x 7mm GSM/GPRS Power Amplifier Module with Integrated Power Control
ANADIGICS Announces Production Shipments of Power Amplifiers to Kyocera for the Rave™, Blade™, & Phantom™ CDMA Handsets Offered by Verizon Wireless and Other Operators
ANADIGICS Ships Power Amplifiers and RF Switches in High Volume for the Popular VX3100 & VX4400 LG Phones
Brian Hurst Joins ANADIGICS as Vice President of Worldwide Sales & Marketing 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. December 31, December 31,
Assets 2003 2002
Current assets:
Cash, short-term investments,
and cash equivalents $72,655 $98,381
Accounts receivable 12,074 9,016
Inventory 10,321 13,277
Prepaid expenses and other
current assets 3,243 4,600
Total current assets 98,293 125,274
Marketable securities 48,975 57,137
Plant and equipment, net 55,242 68,600
Goodwill and other intangibles,
net of amortization 1,788 --
Other assets 3,600 4,660
$207,898 $255,671
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable $9,497 $7,434
Accrued liabilities 5,618 4,733
Accrued restructuring costs 1,994 2,956
Current maturities of capital
lease obligations 84 --
Total current liabilities 17,193 15,123
Other long-term liabilities 2,959 2,760
Long-term debt, less current
portion 66,700 66,700
Stockholders' equity 121,046 171,088
$207,898 $255,671
Three Months Ended Year Ended
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2003 2002 2003 2002
(Unaudited) (Unaudited)
Net sales $23,338 $18,734 $75,212 $82,564
Cost of sales 21,060 16,240 71,927 75,302
Gross profit 2,278 2,494 3,285 7,262
Research and
development expenses 8,609 6,879 32,075 29,742
Selling and
administrative
expenses 5,586 5,002 19,420 21,400
Restructuring and
other charges 300 -- 925 5,001
Asset impairment
charges -- 2,310 -- 8,641
Goodwill impairment
charge -- -- -- 8,043
Purchased in-process
research and
development 173 -- 1,863 --
Operating loss (12,390) (11,697) (50,998) (65,565)
Interest income 715 1,350 3,344 6,309
Interest expense (940) (948) (3,761) (5,119)
Impairment on
investments -- -- -- (390)
Gain on notes
repurchase -- -- -- 12,581
Other income 116 4 276 1
Loss before income
taxes (12,499) (11,291) (51,139) (52,183)
Benefit for income
taxes (382) (4,307) (382) (4,307)
Net loss before
cumulative effect of
accounting change (12,117) (6,984) (50,757) (47,876)
Cumulative effect of
accounting change -- -- -- (8,010)
Net loss $(12,117) $(6,984) $(50,757) $(55,886)
Basic and diluted
loss per share
Net loss before
cumulative effect of
accounting change $(0.39) $(0.23) $(1.65) $(1.57)
Net loss $(0.39) $(0.23) $(1.65) $(1.83)
Weighted average
common and
dilutive
securities
outstanding 30,812,859 30,607,663 30,716,749 30,587,032
January 28, 2004
Revenues $23.3M; Up 31.5% Sequentially ANADIGICS (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 while reducing 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 and is certified to the ISO 9001:2000 quality standard. 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 customers' forecasts of product demand, timely product and process development and protection of the associated intellectual property rights, individual product pricing pressure, variation in production yield, changes in estimated product lives, difficulties in obtaining components and assembly and test services needed for production of integrated circuits, change in economic conditions of the various markets the Company serves, as well as the 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, 2002. Actual results could differ materially from the Company's forward-looking statements. These forward-looking statements 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 the Company's future plans, objectives, estimates, or goals are forward-looking statements. Important factors that could cause actual results and developments to be materially different from those expressed or implied by such statements include those factors discussed herein. |
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