ANADIGICS Reports Results for Third Quarter 2004
October 25, 2004
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ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, today reported net sales of $25.1 million and a loss per share of $0.25 for the third quarter ended October 2, 2004. Revenue grew sequentially by $2.4 million or 10.4% and increased over the prior-year quarter by $7.3 million or 41.1%. EPS loss was lowered sequentially by $0.11 and reduced over the prior-year quarter by $0.16. The Company's enhanced operating performance in the third quarter resulted from the combination of stronger revenues, increased fab utilization, lower production cost, and reduced operating expenses. The gross profit improved to $5.2 million or 20.9% of revenues. Operating expenses were lowered to $13.4 million. Third quarter revenue breakdown:
"We are pleased with our third quarter results, which were better than our previous financial guidance," said Dr. Bami Bastani, President & CEO of ANADIGICS, Inc. "Our success in this past quarter is a result of market share gains, gross margin improvements, and further streamlining of operating expenses. ANADIGICS' strategy of providing customers with best-of-breed products and partnering with industry leading chipset suppliers and reference design powerhouses is supporting our long-term revenue and market share growth." The Company maintains a strong balance sheet with total cash and marketable securities of $107.9 million as of October 2, 2004. "Our commitment to achieving targeted operating expense reductions resulting in total annualized savings of $8 million across cost of goods sold, R&D, and SG&A by the end of the fourth quarter of 2004 is being met," remarked Tom Shields, Senior Vice President and Chief Financial Officer of ANADIGICS, Inc. "Over the past few quarters, we have delivered in excess of 70% of the incremental revenue to gross profit and we continue to reduce operating expenses providing for greater leverage in our financial operating model." BUSINESS OUTLOOK We expect a sequential increase in Wireless product revenue for our CDMA and GSM power amplifier modules offset by slightly lower revenue derived from our products used in infrastructure and set-top box applications. Industry conditions, coupled with the existing order pattern for the fourth quarter 2004, indicate expected overall revenue to be flat to down 5% from third-quarter levels. EPS loss is expected to be flat or improve by $0.01 on improved gross profit and lower operating expenses. HIGHLIGHTS OF THE QUARTER October 13, 2004 - ANADIGICS Introduces New Family of 6 mm by 6 mm GSM/GPRS Power Amplifier Modules October 5, 2004 - ANADIGICS Announces Production Volume Shipments to Eastcom September 27, 2004 - ANADIGICS Appoints Takachiho Koheki to Accelerate Growth in Japan September 23, 2004 - ANADIGICS Supplies Power Amplifiers to Topping September 21, 2004 - ANADIGICS Announces Production Volume Shipments of GSM/GPRS Power Amplifier Modules to Ningbo Bird September 21, 2004 - ANADIGICS ANNOUNCES PRICING OF CONVERTIBLE SENIOR NOTES September 16, 2004 - ANADIGICS Announces Production Volume Shipments to Truetel September 14, 2004 - ANADIGICS Supplies GSM/GPRS PA Modules to Lenovo September 10, 2004 - ANADIGICS Announces Production Volume Shipments of 450 MHz CDMA 1X / 1xEV-DO Power Amplifiers September 7, 2004 - ANADIGICS Announces Production KPCS CDMA PA Shipments to Samsung Electronics September 2, 2004 - ANADIGICS Expands Family of Broadband Products with New Active Splitter August 31, 2004 - ANADIGICS Announces Production Volume Shipments of GSM/GPRS PA Modules to Capitel August 26, 2004 - ANADIGICS Opens Shanghai Office August 24, 2004 - ANADIGICS Expands Wireless and Broadband Sales Presence in the United States and Canada August 23, 2004 - ANADIGICS Ships Production Volumes of GSM/GPRS PA Modules to ASUSTEK CONFERENCE CALL ANADIGICS' senior management will conduct a conference call today at 8:30 a.m. 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) 839-5490 (available until November 1).
ANADIGICS, Inc. Three Months Ended Nine Months Ended
Oct. 2, July 3, Sept. 27, Oct. 2, Sept. 27,
2004 2004 2003 2004 2003
Net sales $25,053 $22,687 $17,750 $68,935 $51,874
Cost of sales 19,811 19,207 17,538 58,193 50,867
Gross profit 5,242 3,480 212 10,742 1,007
Research and
development expenses 7,884 8,866 8,029 25,652 23,466
Selling and
administrative
expenses 5,482 6,099 4,795 17,371 13,834
Restructuring and
other charges -- -- -- -- 625
Purchased in-process
R&D -- -- -- -- 1,690
Operating loss (8,124) (11,485) (12,612) (32,281) (38,608)
Interest income 469 551 741 1,679 2,629
Interest expense (955) (940) (940) (2,835) (2,821)
Gain on note repurchase 327 -- -- 327 --
Other (expense) income (36) 143 183 308 160
Net loss $(8,319) $(11,731) $(12,628) $(32,802) $(38,640)
Loss per share $(0.25) $(0.36) $(0.41) $(1.02) $(1.26)
Weighted average
common shares
outstanding 32,770 32,405 30,674 32,252 30,674
ANADIGICS, Inc. October 2, 2004 December 31, 2003
Assets (unaudited)
Current assets:
Cash and cash equivalents $24,326 $18,525
Marketable securities 45,032 54,130
Accounts receivable 14,529 12,074
Inventory 16,743 10,321
Prepaid expenses and other current assets 3,539 3,243
Total current assets 104,169 98,293
Marketable securities 38,506 48,975
Plant and equipment, net 45,893 55,242
Goodwill and other intangibles, net
of amortization 6,345 1,788
Other assets 4,612 3,600
$199,525 $207,898
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $12,159 $9,497
Accrued liabilities 4,471 5,618
Accrued restructuring costs 1,002 1,994
Capital lease obligations 34 84
Total current liabilities 17,666 17,193
Other long-term liabilities 3,108 2,959
Long-term debt 84,700 66,700
Stockholders' equity 94,051 121,046
$199,525 $207,898 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 quality standard. Except for historical information contained herein, this press release contains projections and other forward-looking statements (as that term is defined in the Securities Exchange Act of 1934, as amended). These projections and forward-looking statements reflect the Company's current views with respect to future events and financial performance and 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 our future plans, objectives, estimates or goals are forward-looking statements. No assurances can be given, however, that these events will occur or that these projections will be achieved and actual results and developments could differ materially from those projected as a result of certain factors. Important factors that could cause actual results and developments to be materially different from those expressed or implied by such projections and forward-looking statements include those factors detailed from time to time in our reports filed with the Securities and Exchange Commission, including the Company's annual report on Form 10-K for the year ended December 31, 2003, and those discussed elsewhere herein. |
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