ANADIGICS Reports Fourth Quarter and Full Year 2000 Results
January 29, 2001
|
ANADIGICS, Inc. (Nasdaq: ANAD) today reported net sales of $30.7 million for the fourth quarter ended December 31, 2000, a 24% decline from the $40.1 million reported in the fourth quarter of 1999. The company reported a net loss of $0.3 million and a loss per share of $0.01, compared with the net income of $4.4 million and diluted earnings per share of $0.15 reported in the prior year. Sequentially, net sales were down 40% from the 2000 third quarter. The net loss reported in the fourth quarter included a pretax charge for inventory reserves of $1.3 million and an income tax benefit of $0.8 million (reflecting the company's full-year effective tax rate of 34% versus its previous estimate of 37%). The net loss excluding these two items remains unchanged at $0.3 million and $0.01 per share. The fourth quarter revenues reflect continuing changes in the communications markets and further inventory corrections at major customers. Broadband revenues were $23.8 million (cable: $18.1 million and fiber: $5.7 million), a 36% increase from the prior year and a 22% decline from the third quarter. As expected, wireless revenues in the fourth quarter were $6.9 million, down 70% from the same period last year and 67% from the third quarter. Gross margin in the fourth quarter of 40.0%, excluding the inventory reserve, decreased from 51.4% in the third quarter. For the same period last year, gross margin was 48.1%. The decline in gross margin resulted from the effect of lower sales levels on the absorption of overhead costs in the fabrication facility. "Our fourth quarter performance was affected by overall communications market conditions and inventory corrections at certain customers," remarks Dr. Bami Bastani, President and Chief Executive Officer. "We continue to focus on introduction of new products and diversification of our customer base and the results of our efforts are expected to materialize in first half 2001." Full-year 2000 net sales were a record $172.3 million, up 31% from the $131.2 million reported for the full-year 1999. Broadband revenues comprised 56% (or $95.7 million) of total sales and increased 36% from 1999. Wireless revenues ($76.5 million) increased 26% from 1999. Net income increased 91% to $18.9 million, a record for the company, and diluted earnings per share of $0.60 increased 54% from 1999 (excluding special charges). "Despite a disappointing fourth quarter, the year as a whole was quite successful for ANADIGICS," continues Dr. Bastani. . "We introduced approximately 25 new products in 2000 including our line of InGaP HBT power amplifiers, the PicoTuner™, which is a cable industry breakthrough, and the first of a family of OC-192 fiber optic products. We began sampling with Tier I and II OEMs, and have achieved multiple design wins." The Company's balance sheet remains strong. The Company's cash position, including marketable securities, was $166 million at the end of the year. HIGHLIGHTS OF THE YEAR
NEW PRODUCTS - 3-Volt HBT Power Amplifiers
NEW PRODUCT - InGaP HBT Power Amplifier for GSM/DCS and GPRS
DESIGN WIN - Reverse Amplifier Is Selected By Motorola for Communications Gateway ip Telephony Product
NEW PRODUCTS - Expanded Wireless Product Portfolio with Introduction of New Family of pHEMT Switches
NEW PRODUCT - InGaP HBT Transimpedance Amplifier (TIA) for OC-192 Fiber Optic Systems
NEW PRODUCT - PicoTuner(TM) A fully integrated, dual conversion RF data tuner.
MILESTONE - Over 100 Million ICs Shipped To Date for Broadband Network Applications
ANADIGICS, INC. Three months ended
Dec. 31, 2000 Dec. 31, 1999
---------------------------------
(unaudited) (unaudited)
Net sales $ 30,671 $ 40,117
Cost of sales 19,693 20,809
------------- ------------
Gross profit 10,978 19,308
Research and development expenses 8,977 9,398
Selling and administrative expenses 6,317 5,257
Restructuring charge - -
------------- ------------
Operating income (loss) (4,316) 4,653
Interest and other income 2,570 1,796
Provision for litigation settlement -
------------- ------------
Income (loss) before income taxes (1,746) 6,449
Provision (benefit) for income taxes (1,415) 2,064
------------- --------------
Net income (loss) $ (331) $ 4,385
============= ==============
Basic earnings (loss) per share $ (0.01) $ 0.16
============= ==============
Weighted average common
shares outstanding 29,952,717 27,490,061
============= ==============
Diluted earnings (loss)
per share $ (0.01) $ 0.15
============= ==============
Weighted average common and
dilutive securities outstanding 29,952,717 29,549,139
============= ==============
Year ended
Dec. 31, 2000 Dec. 31, 1999
--------------------------------
$ 172,268 $ 131,159
Net sales 89,471 75,820
(1)
Cost of sales ------------ --------------
82,797 55,339
Gross profit 39,799 29,658
Research and development expenses 26,202 19,092
Selling and administrative expenses
(441)(1)
Restructuring charge ------------ --------------
16,796 7,030
Operating income (loss) 11,800 3,293
Interest and other income - 6,925
(1)
Provision for litigation settlement ------------ --------------
28,596 3,398
Income (loss) before income taxes 9,704 810
Provision (benefit) for income taxes ------------ --------------
$ 18,892 $ 2,588
(1)
Net income (loss) ============ =============
$ 0.64 $ 0.11
(1)
Basic earnings (loss) per share ============ ==============
Weighted average common 29,712,879
23,602,799
shares outstanding ============ ==============
Diluted earnings (loss) per share $ 0.60 $ 0.10
(1)
============ ==============
Weighted average common and
dilutive securities outstanding 31,519,889 25,203,882
============ ==============
(1) Excluding accelerated depreciation expense of $5,320(associated
with the planned closing of the Company's existing wafer fabrication
facility), the provision for litigation settlement of $6,925, and the
reversal of the restructuring chare of $441, the Company reported net
income of $9,906 and diluted earnings per share of $0.39 during the year
ended December 31, 1999.
ANADIGICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)
December 31, 1999 December 31, 2000
--------------- -------------
Assets
Current assets:
Cash and cash equivalents $149,895 $95,116
Marketable securities 14,452 53,254
Accounts receivable 25,151 21,794
Inventory 10,334 22,969
Prepaid expenses and
other current assets 2,708 3,475
Insurance settlement
receivable 5,325 -
Deferred taxes 4,840 3,035
--------------- -------------
Total current assets 212,705 199,643
Marketable securities 7,404 17,791
Property and equipment:
Equipment and furniture 115,195 137,819
Leasehold improvements 27,553 32,767
Projects in process 8,525 19,083
Less accumulated depreciation
and amortization 66,383 83,034
--------------- -------------
84,890 106,635
Other assets 2,164 5,302
Deferred taxes 10,447 23,102
--------------- -------------
$317,610 $352,473
=============== ============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $15,901 $10,985
Accrued litigation
settlement costs 11,761 -
Accrued liabilities 6,577 6,824
Accrued restructuring costs 993 597
Current maturities of
long-term debt 1,000 1,000
Current maturities of
capital lease obligations 151 250
--------------- -------------
Total current liabilities 36,383 19,656
Capital lease obligations,
less current portion 32
Other long-term liabilities 1,546 1,985
Long-term debt,
less current portion 3,000 2,000
Stockholders' equity
Common Stock, $0.01 par value,
144,000,000 shares authorized,
30,027,760 and 28,853,614
issued and outstanding at
December 31, 2000 and
December 31, 1999, respectively 289 300
Additional paid-in capital 296,496 329,362
Accumulated deficit (20,010) (1,118)
Accumulated other comprehensive
(loss) income (126) 288
--------------- --------------
Total stockholders' equity 276,649 328,832
--------------- --------------
$317,610 $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, 1999. 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. |
|
