ANADIGICS Reports Record-Breaking Quarter
July 21, 2000
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ANADIGICS, Inc. (Nasdaq:ANAD) today reported record net sales of $47.5 million for the second quarter ended July 2, 2000, a 56% increase over the $30.5 million reported in the second quarter of 1999. Net income for the second quarter was $6.6 million or $0.21 per diluted share, also records for the company, compared with net income (excluding special charges) of $2.0 million or $0.08 per share in the year-ago quarter. Net sales were up 10.5% sequentially from the $43.0 million reported in the first quarter ended April 2, 2000. Net income and earnings per share increased sequentially 16% and 17%, respectively, from the $5.7 million and $0.18, excluding special items, reported in the 2000 first quarter. Net sales of $90.5 million for the first half of 2000 rose 63% from the $55.6 million reported in the first half of 1999. Excluding special items, first half 2000 net income of $12.3 million and earnings per share of $0.39 increased 288% and 200%, respectively, from the $3.2 million and $0.13 reported in the 1999 first half. Second quarter 1999 net income above excludes a special charge for accelerated depreciation of $2.7 million associated with the closing of the four-inch wafer fabrication facility and a provision of $6.9 million for settlement of litigation. Including these special charges, the Company reported a net loss in the 1999 second quarter of $4.1 million or $0.18 per basic share. "ANADIGICS is well positioned to ride the wave of the ever- expanding communications IC market," said Dr. Bami Bastani, ANADIGICS President and Chief Executive Officer. "Our broadband communications products continue to enjoy double-digit sequential quarter growth and we believe ANADIGICS is the dominant RF IC supplier to the broadband market. We are fortifying our wireless business with a new InGaP HBT power amplifier product line that is targeted to go into production in the first quarter of 2001." Sales of communications IC products into the wireless, cable and broadcast, and fiber optic markets all contributed to the record quarter, reflecting the continued rapid expansion of these markets and the favorable competitive position of ANADIGICS and its customer base. Sales of wireless products, principally power amplifier ICs for mobile phones, were $25.5 million in the quarter, an increase of 95% from the year-ago quarter and 9% sequentially from the first quarter. Sales of products for the cable and broadcast industry, including ICs for cable set-top boxes, modems, and infrastructure networks, reached $17.0 million, an increase of 61% from the year-ago quarter and 11% sequentially. Fiber product IC sales of $5.0 million declined 27% from the year-ago quarter, but achieved 16% sequential growth, reflecting the strategic repositioning of the product line to serve higher data rate communication applications. "During the second quarter, ANADIGICS made additional headway in diversifying its customer base, particularly in our broadband businesses," said Dr. Bastani. "I am delighted to say that we have signed up a number of new customers, particularly from the Asian region." We believe that our number one customer's first half inventory corrections of GSM phones and issues related to component shortages will result in a mix shift of our product revenues in the second half. The expansion of broadband sales is expected to offset the shift in revenue and earnings. Gross margin in the quarter of 51.3% increased sequentially from the first quarter by 120 basis points (excluding certain first quarter costs), reflecting the continued leveraging of fixed costs over higher sales volumes. For the same period last year, gross margin was 45.7% (excluding the special depreciation charge). The Company completed the migration to its state-of-the-art, six-inch GaAs RF wafer fabrication facility on September 21, 1999 and is on track for third quarter completion of the expansion of the facility, which will approximately double existing manufacturing clean room capacity.
New Product - InGaP Hbt Transimpedance Amplifier (TIA) for OC-192 Fiber Optic Systems
New Product - InGaP Hbt Transimpedance Amplifier (TIA) for OC-192 Fiber Optic Systems
New Product - Dual-Technology Reverse Amplifier for Use in Internet-Enabled Cable Systems
Highlights of the Quarter July 2, 2000 Dec. 31, 1999(1)
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Assets (unaudited)
Current assets:
Cash and cash equivalents $ 131,842 $ 149,895
Marketable securities 13,140 14,452
Accounts receivable, net 28,988 25,151
Inventory 16,101 10,334
Prepaid expenses and other current
assets 3,552 2,708
Insurance settlement receivable -- 5,325
Deferred taxes 4,840 4,840
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Total current assets 198,463 212,705
Marketable securities 27,171 7,404
Property and equipment:
Equipment and furniture 130,312 115,195
Leasehold improvements 27,746 27,553
Projects in process 14,138 8,525
Less accumulated depreciation and
amortization 73,320 66,383
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98,876 84,890
Other assets 2,514 2,164
Deferred taxes 3,313 10,447
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$ 330,337 $ 317,610
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Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 17,289 $ 15,901
Accrued litigation settlement costs -- 11,761
Accrued liabilities 7,433 6,577
Accrued restructuring costs 868 993
Current maturities of long-term debt 1,000 1,000
Current maturities of capital lease
obligations 210 151
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Total current liabilities 26,800 36,383
Capital lease obligations, less
current portion -- 32
Other long-term liabilities 1,790 1,546
Long-term debt, less current portion 2,500 3,000
Stockholders' equity
Common Stock, $0.01 par value,
144,000,000 shares authorized,
29,865,985 and 28,853,614 issued
and outstanding at July 2, 2000 and
December 31, 1999, respectively 298 289
Additional paid-in capital 307,028 296,496
Accumulated deficit (7,864) (20,010)
Accumulated other comprehensive loss (215) (126)
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Total stockholders' equity 299,247 276,649
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$ 330,337 $ 317,610
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(1) The condensed balance sheet at December 31, 1999 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. (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. For more information on ANADIGICS, visit the Company's Web site at www.anadigics.com. 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. |
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