Our Products

ANADIGICS Reports Results For Second Quarter 2005


July 25, 2005

ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, reported second quarter 2005 net sales of $23.9 million compared to net sales of $21.8 million in the prior quarter and $22.7 million in the year ago quarter. The net loss for the quarter was $9.1 million or $0.27 per share compared with a net loss of $11.5 million or $0.34 per share in the prior quarter and $11.7 million or $0.36 per share in the year ago quarter.

For the six months ended July 2, 2005 net sales were $45.7 million compared with $43.9 million in the six months ended July 3, 2004. The net loss was $20.5 million or $0.61 per share compared with $24.5 million or $0.77 per share in the prior year.

As of July 2, 2005, cash and short and long-term marketable securities totaled $90.0 million compared with $97.3 million at the end of the first quarter 2005.

"Our revenue growth and improved operating performance were led by a 25% sequential increase in Broadband and highlights our leadership position with Tier 1 OEMs," said Dr. Bami Bastani, President and CEO of ANADIGICS. "Our design wins and subsequent production orders for GSM/GPRS, EDGE and W-CDMA wireless handset products with Tier 1 customers in recent quarters are strong catalysts for additional revenue growth in the second half of 2005."

The second quarter performance of the company benefited from the market trend toward digital video recording (DVR) / personal video recording (PVR) functionality in set-top boxes, which is expected to continue. The Company also achieved sequential WLAN revenue growth fueled by the favorable attachment rates for WLAN to mobile processors and by ANADIGICS' strong working relationships with notebook PC market leaders.

Outlook for Third Quarter 2005

Net sales and the loss per share for the third quarter of 2005 are expected to improve by approximately 10% compared with the second quarter of 2005. The Company's Wireless product line is expected to grow 15%-20% in revenues.

RECENT HIGHLIGHTS

July 18, 2005 - ANADIGICS Announces Production Shipments of CDMA Power Amplifiers to Samsung Electronics

July 11, 2005 - ANADIGICS Supplies 3G Power Amplifiers to UTStarcom

June 6, 2005 - ANADIGICS Introduces World's Smallest Integrated Digital and Analog Tuners

May 19, 2005 - ANADIGICS Announces Production Shipments of WCDMA Power Amplifier Modules to Samsung Electronics

May 11, 2005 - ANADIGICS Achieves Samsung Electronics' Eco-Partnership Certification

May 10, 2005 - ANADIGICS Leads GaAs RF Semiconductor Technology by Integrating HBTs and pHEMTs on Single InGaP GaAs Die

May 9, 2005 - ANADIGICS Receives Production Orders from Samsung Electronics for 6 mm by 6 mm GSM/GPRS Power Amplifiers

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 (888) 566-0177 (available until August 3).

ANADIGICS, INC.
Condensed Consolidated Balance Sheets
(Amounts in Thousands) 

July 2, 2005     December 31, 2004
Assets                                  (Unaudited)

Current assets:                    
  Cash and cash equivalents               $9,203             $11,171 
  Marketable securities                   71,081              63,615
  Accounts receivable                     13,370              10,770
  Inventory                               13,114              14,436
  Prepaid expenses and other current
  assets                                   3,686               3,073
Total current assets                      110,454             103,065
               
Marketable securities                       9,670              29,265
               
Plant and equipment, net                   37,501              43,038
               
Goodwill and other intangibles, net
of amortization                             6,112               6,297
Other assets                                3,549               4,230
                                        $167,286            $185,895 
               
Liabilities and stockholders’ equity

Current liabilities:                    
  Accounts payable                        $9,999              $8,021 
  Accrued liabilities                      3,893               4,783
  Accrued restructuring costs                 69                 726
  Capital lease obligations                    0                  18
Total current liabilities                  13,961              13,548
               
Other long-term liabilities                 3,089               3,032
Long-term debt                             84,700              84,700
               
Total Stockholders’ equity                 65,536              84,615
                                        $167,286            $185,895

The condensed balance sheets at December 31, 2004 have 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
(Unaudited)
(Amounts in thousands, except per share amounts) 

Three Months Ended               Six Months Ended    
                           July 2, 2005    July 3, 2004     July 2, 2005    July 3, 2004
  Net sales                   $23,943        $22,687           $45,716        $43,882 
  Cost of sales                19,511         19,207            38,763         38,382
  Gross profit                  4,432          3,480             6,953          5,500
  Research and development
  expenses                      7,374          8,866            15,236         17,768
  Selling and administrative 
  expenses                      5,506          6,099            11,058         11,889
  Restructuring and other
  charges                           -                             (120)             - 
  Operating loss               -8,448        -11,485           -19,221        -24,157
  Interest income                 599            551             1,176          1,210
  Interest expense             -1,249           -940            -2,498         -1,880
  Other income                      9            143                 3            344
  Net loss                    $(9,089)       -11,731           (20,540)       (24,483)
                               
  Loss Per Share               $(0.27)        $(0.36)           $(0.61)        $(0.77)

  Weighted average common                                
  shares outstanding           34,057         32,405            33,780         31,985

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 and is certified to the ISO 9001:2000 and ISO 14001:1996 quality standards.

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, 2004. 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.