ANADIGICS REPORTS FOURTH QUARTER AND FISCAL YEAR 2006 RESULTS
February 12, 2007
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ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, reported fourth quarter 2006 net sales of $49.1 million, an increase of 10% compared with net sales of $44.8 million in the prior quarter, and an increase of 48% compared to net sales of $33.3 million in the year ago quarter. Net loss calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP") for the fourth quarter was $0.1 million, or $0.00 per share, compared with a GAAP net loss of $1.3 million, or $0.03 per share, in the prior quarter, and a GAAP net loss of $3.9 million, or $0.11 per share, in the year ago quarter. Pro forma income for the fourth quarter, which excludes non-cash stock compensation expense, was $2.8 million, or $0.06 per share. Reported full-year 2006 net sales were $169.9 million, an increase of 57% compared with net sales of $108.3 million for full-year 2005. Full-year 2006 GAAP net loss was $8.9 million, or $0.20 per share, compared with a GAAP net loss of $31.2 million, or $0.92 per share in the year-ago period. Full-year 2006 Pro forma loss, which excludes non-cash stock compensation expense, was $0.5 million or $0.01 per share. "ANADIGICS achieved another important milestone as the Company delivered its seventh consecutive quarter of net sales growth and posted pro forma profitability ahead of the Street " said Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. " We believe that the company is positioned to capitalize on the rapidly-growing voice, data and video segments of the wireless and broadband communications markets, where we offer 3G/3.5G products that use the W-CDMA, the HSDPA, HSUPA & EDGE standards, 4G products for WiMAX and WiBRO systems, WiFi products that use the 802.11 a/b/g and 802.11 n (draft-n, MIMO) standards, CATV set-top box and infrastructure and FTTP products." As of December 31, 2006, cash and short and long-term marketable securities totaled $83.5 million compared with $130.5 million as of September 30, 2006. The reduction of $47.0 million resulted from the repayment in full of the company's $46.7 million of convertible notes which matured on November 15, 2006. "The financial accomplishments demonstrated during 2006 were important achievements for ANADIGICS," said Tom Shields, Executive Vice President and Chief Financial Officer. "Our effectiveness in significantly improving our financial results year-over-year is an acknowledgment of the company's leverage and commitment to our shareholders." This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP, or pro forma, net income or loss and non- GAAP, or pro forma, 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 and for planning purposes. 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 equity-based compensation. These financial measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for net loss or loss per share prepared in accordance with GAAP. Reconciliations of reported net loss and reported loss per share to non-GAAP net income or loss and non- GAAP income or loss per share, respectively, are included at the end of this press release. Outlook for the First Quarter 2007 Net sales for the first quarter of 2007 are expected to be unaffected by the typical industry seasonality and are estimated to be equal to up approximately 3% sequentially. Net sales within this expected range would represent a 38% to 42% increase over first quarter 2006. Net loss per share on a GAAP basis for the first quarter of 2007 is expected to approximate $0.01. However, on a pro forma basis, we expect to generate net income of approximately $0.06 per share. The statements regarding outlook are forward looking and actual results may differ materially. Please see safe harbor statement at the end of the 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 . A recording of the call will be available approximately two hours after the end of the call on the ANADIGICS Web site www.anadigics.com or by dialing (800) 388-9064 (available until February 28). Recent Highlights January 31 - ANADIGICS Announces Production Shipments of WLAN 802.11n Power Amplifiers January 8 - ANADIGICS' PA Powers Samsung's Blackjack(TM) Windows Mobile UMTS and HSDPA Smartphone December 4 - ANADIGICS' Advanced Power Amplifiers Support QUALCOMM's HSPA Solutions November 17 - ANADIGICS Drop Amplifiers Enable Humax Set-Top Box ANADIGICS, INC.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
December 31, December 31,
2006 2005
Assets (Unaudited)
Current assets:
Cash and cash equivalents $13,706 $11,891
Marketable securities 60,892 70,364
Accounts receivable 27,311 18,755
Inventory 20,355 16,009
Prepaid expenses and other
current assets 2,662 2,188
Total current assets 124,926 119,207
Marketable securities 8,884 4,102
Plant and equipment, net 41,368 36,307
Goodwill and other intangibles,
net of amortization 5,929 6,044
Other assets 1,495 2,613
$182,602 $168,273
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $18,031 $15,519
Accrued liabilities 5,688 4,672
Accrued restructuring costs - 40
Current portion of long-term debt - 46,700
Capital lease obligations 312 269
Total current liabilities 24,031 67,200
Other long-term liabilities 3,348 3,175
Long-term debt 38,000 38,000
Long-term capital lease obligations 1,463 1,763
Stockholders' equity 115,760 58,135
$182,602 $168,273
* The condensed balance sheet at December 31, 2005 has been derived
from the audited financial statements at such date but does not
include all the information and footnotes required by generally
accepted accounting principles for complete financial statements.
ANADIGICS, INC.
Consolidated Statements of Operations
(Amounts in thousands, except per share amounts)
Three months ended Twelve months ended
December 31, December 31, December 31, December 31,
2006 2005 2006 2005
(Unaudited) (Unaudited) (Unaudited)
Net sales $49,124 $33,301 $169,885 $108,281
Cost of sales 32,916 24,475 119,175 85,929
Gross profit 16,208 8,826 50,710 22,352
Research and
development expenses 9,834 7,179 35,628 29,906
Selling and
administrative
expenses 6,872 5,001 24,562 21,293
Restructuring and
other charges - - - (120)
Operating loss (498) (3,354) (9,480) (28,727)
Interest income 1,365 690 5,450 2,473
Interest expense (956) (1,249) (4,816) (4,997)
Other (expense)
income (25) - (4) 18
Net loss $(114) $(3,913) $(8,850) $(31,233)
Basic and diluted loss
per share $ - $(0.11) $(0.20) $(0.92)
Weighted average common
and dilutive
securities
outstanding 45,649 34,405 43,814 34,012
Unaudited
Reconciliation of GAAP
to Pro Forma Non-GAAP
Financial Measures
GAAP net loss $(114) $(3,913) $(8,850) $(31,233)
Less: Stock
compensation expense
Cost of sales 655 141 1,829 596
Research and
development 1,134 262 3,287 1,185
Selling, general
and administrative 1,109 193 3,238 868
Pro forma net
income (loss) $2,784 $(3,317) $(496) $(28,584)
Pro forma basic net
income (loss) per
share $0.06 $(0.10) $(0.01) $(0.84)</pre>
About ANADIGICS, Inc.
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