ANADIGICS REPORTS RESULTS FOR SECOND QUARTER 2006
July 24, 2006
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ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, reported second quarter 2006 net sales of $40.2 million, an increase of 12.6% compared with net sales of $35.7 million in the prior quarter, and an increase of approximately 68% compared to net sales of $23.9 million in the year ago quarter. Net loss calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP") for the quarter was $2.8 million, or $0.06 per share, compared with a GAAP net loss of $4.6 million, or $0.12 per share, in the prior quarter, and a GAAP net loss of $9.1 million, or $0.27 per share, in the year ago quarter. Pro forma net loss for the quarter, excluding non-cash stock compensation expense, was $1.0 million or $0.02 per share. As of July 1, 2006, cash and short and long-term marketable securities totaled $128.9 million compared with $134.5 million as of April 1, 2006. "I am extremely pleased with our outstanding second quarter performance, which included exceeding our prior revenue guidance and represents an achievement of delivering five consecutive quarters of revenue growth for the company" said Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "We expect our revenue momentum and operating leverage to continue as a result of our strong positioning in existing growth markets including third-generation (3G) cell phones, Wi-Fi, and Tuner ICs." This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP, or pro forma, net loss and non-GAAP, or pro forma, loss per share. Management uses non-GAAP net loss and non-GAAP 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 loss and non-GAAP loss per share, respectively, are included at the end of this press release. Outlook for the Third Quarter 2006 Net Sales for the third quarter of 2006 is estimated to increase sequentially by approximately 7% - 9% and approximately 50% over the year ago quarter. Net loss per share on a GAAP basis for the third quarter of 2006 is expected to approximate $0.04 per share. However, on a Pro forma basis, we expect to generate net earnings of approximately $0.01 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. Recent Highlights July 11, 2006 - ANADIGICS Supplies 3G Power Amplifiers to ZTE June 26, 2006 - ANADIGICS' Dual-Band CDMA Power Amplifiers Enable LG Electronics' VX8300 EV-DO Handset June 20, 2006 - ANADIGICS Joins Russell 3000 Index
ANADIGICS, INC. Three months ended Six months ended
July 1, July 2, July 1, July 2,
2006 2005 2006 2005
Net sales $40,215 $23,943 $75,936 $45,716
Cost of sales 28,940 19,511 55,224 38,763
Gross profit 11,275 4,432 20,712 6,953
Research and development
expenses 8,498 7,374 16,657 15,236
Selling and administrative
expenses 5,869 5,506 11,362 11,058
Restructuring and other charges - - - (120)
Operating loss (3,092) (8,448) (7,307) (19,221)
Interest income 1,571 599 2,437 1,176
Interest expense (1,287) (1,249) (2,575) (2,498)
Other income 21 9 21 3
Net loss $(2,787) $(9,089) $(7,424) $(20,540)
Basic and diluted net loss per
share $(0.06) $(0.27) $(0.18) $(0.61)
Weighted average common and
dilutive securities outstanding 47,198 34,057 42,184 33,780
Unaudited Reconciliation of GAAP to Pro Forma Non-GAAP Financial GAAP net loss $(2,787) $(9,089) $(7,424) $(20,540)
Less Stock compensation expense
Cost of sales 387 174 696 309
Research and development 701 359 1,272 642
Selling, general and
administrative 691 251 1,260 480
Pro forma net loss $(1,008) $(8,305) $(4,196) $(19,109)
Pro forma basic and diluted net
loss per share $(0.02) $(0.24) $(0.10) $(0.57)
ANADIGICS, INC. July 1, December 31,
2006 2005
Assets (Unaudited)
Current assets:
Cash and cash equivalents $15,183 $11,891
Marketable securities 111,685 70,364
Accounts receivable 22,775 18,755
Inventory 20,272 16,009
Prepaid expenses and other
current assets 3,791 2,188
Total current assets 173,706 119,207
Marketable securities 1,983 4,102
Plant and equipment, net 37,456 36,307
Goodwill and other intangibles,
net of amortization 5,977 6,044
Other assets 1,721 2,613
$220,843 $168,273
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable $17,049 $15,519
Accrued liabilities 4,918 4,672
Accrued restructuring costs 9 40
Current portion of long-term
debt 46,700 46,700
Capital lease obligations 301 269
Total current liabilities 68,977 67,200
Other long-term liabilities 3,261 3,175
Long-term debt 38,000 38,000
Long-term capital lease
obligations 1,616 1,763
Stockholders' equity 108,989 58,135
$220,843 $168,273Conference 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 (800) 839-1247 (available until July 31). ANADIGICS, Inc. (Nasdaq: ANAD) is a leading provider of radio frequency integrated circuits and radio frequency front end solutions in the rapidly growing wireless handset and broadband communications markets. The Company's products include power amplifiers, tuner integrated circuits, active splitters and other components, which can be sold individually or packaged as integrated RF modules.
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