ANADIGICS Reports Third Quarter 2001 Results
October 22, 2001
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ANADIGICS, Inc. (Nasdaq: ANAD) today reported net sales of $16.3 million and a loss (excluding special charges and amortization of intangibles) of $0.52 per share for the third quarter ended September 30, 2001. These results were better than anticipated, driven by further strength in sales of wireless CDMA power amplifiers and improved gross margin. Net sales were $51.1 million in the third quarter of 2000. The Company is on track with the actions announced on September 10th to reduce manufacturing costs and to reduce operating expenses 30% by the first quarter 2002 through workforce reductions and consolidation of facilities. In the third quarter, special charges of $5.7 million were recorded, including cash-related charges of $1.2 million resulting from a reduction in workforce and non-cash-related charges of $4.5 million resulting from the write-down of impaired assets. Including these special charges and amortization of intangibles, the net loss for the third quarter was $22.4 million or $0.74 per share. "We are pleased to announce better than expected revenue and EPS for the third quarter, due to the growth of our wireless business. We believe that the third quarter is the bottom and expect fourth quarter revenue growth, especially in our wireless business where we expect year over year fourth quarter revenue growth of over 50%," remarked Dr. Bami Bastani, President & Chief Executive Officer of ANADIGICS. "We are confident in our fourth quarter outlook since we are currently more than 90% booked to realize 10% sequential quarterly revenue growth." In the third quarter, wireless product line revenues were $6.1 million, cable product line revenues were $7.8 million, and fiber product line revenues were $2.4 million. "The growth of our wireless business is a direct result of the strength of our product portfolio which addresses all major digital standards, including CDMA, TDMA, and GSM," continued Dr. Bastani. "Our strategy to aggressively target the CDMA handset market, which is the fastest growing sector of the wireless market, is paying off and we are shipping over 1 million CDMA modules per month. Our investment in InGaP HBT technology has positioned us well for the needs of 1xRTT, CDMA2000 and wide-band CDMA standards. ANADIGICS is positioned to continue to gain new customers and increase market share with leading products." The Company's balance sheet remains strong, with cash and marketable securities totaling $110 million at September 30, 2001.
OUTLOOK HIGHLIGHTS OF THE QUARTER
DESIGN WIN - CATV Tuner ICs for Samsung
NEW PRODUCT - CDMA Power Amplifier Module for Korean Marketplace
NEW PRODUCT - Gain Block Amplifiers for Infrastructure Systems
NEW PRODUCT - Downconverter with Dual Synthesizer
NEW PATENT AWARD - Wireless Power Amplifier
CONFERENCE CALL
ANADIGICS, INC. Three Months Ended September 29, 2001
As Reported Adjustments Adjusted
(unaudited) (unaudited)(unaudited)
Net sales $ 16,340 $ - $ 16,340
Cost of sales 18,197 - 18,197
Gross (loss) profit (1,857) - (1,857)
Research and development expenses 9,478 - 9,478
Selling and administrative expenses 6,872 (912)(1) 5,960
Restructuring charge 5,701 (5,701)(2) 0
Purchased in-process R&D 0 - 0
Operating loss (23,908) (6,613) (17,295)
Interest income, net 1,506 - 1,506
Gain on sale of equipment 3 - 3
Loss before income taxes (22,399) (6,613) (15,786)
Provision for income taxes 0 0 0
Net loss $ (22,399) $ (6,613) $ (15,786)
Basic and diluted loss per share $ (0.74) $ (0.52)
Weighted average common
shares outstanding 30,323,356 30,323,356
(1) Comprised of the amortization of acquisition-related goodwill and
Condensed Consolidated Statements of Operations Three Months Ended Nine Months Ended
Sept. 29, Sept. 30, Sept. 29, Sept. 30,
2001 2000 2001 2000
(unaudited) (unaudited) (unaudited) (unaudited)
Net sales $ 16,340 $ 51,075 $ 63,757 $ 141,597
Cost of sales 18,197 24,810 65,636 69,778
Gross (loss) profit (1,857) 26,265 (1,879) 71,819
Research and development
expenses 9,478 10,852 29,501 30,821
Selling and administrative
expenses 6,872 7,121 20,881 19,885
Restructuring charge 5,701 - 7,401 -
Purchased in-process R&D - - 3,800 -
Operating (loss) income (23,908) 8,292 (63,462) 21,113
Interest income, net 1,506 2,756 5,461 7,876
Gain (loss) on sale of
equipment 3 15 (46) 1,353
(Loss) income before
income taxes (22,399) 11,063 (58,047) 30,342
Provision for income
taxes - 3,986 24,338 11,119
Net (loss) income $ (22,399) $ 7,077 $ (82,385) $ 19,223
Basic (loss) earnings
per share $ (0.74) $ 0.24 $ (2.73) $ 0.65
Weighted average common
shares outstanding 30,323,356 29,880,442 30,190,556 29,655,966
Diluted (loss)
earnings per share $ (0.74) $ 0.23 $ (2.73) $ 0.61
Weighted average
common and
dilutive securities
outstanding 30,323,356 31,241,801 30,190,556 31,655,258
Condensed Consolidated Balance Sheets Three Months Ended Nine Months Ended
Sept. 29, Sept. 30, Sept. 29, Sept. 30,
2001 2000 2001 2000
(unaudited) (unaudited) (unaudited) (unaudited)
Net sales $ 16,340 $ 51,075 $ 63,757 $ 141,597
Cost of sales 18,197 24,810 65,636 69,778
Gross (loss) profit (1,857) 26,265 (1,879) 71,819
Research and development
expenses 9,478 10,852 29,501 30,821
Selling and administrative
expenses 6,872 7,121 20,881 19,885
Restructuring charge 5,701 - 7,401 -
Purchased in-process R&D - - 3,800 -
Operating (loss) income (23,908) 8,292 (63,462) 21,113
Interest income, net 1,506 2,756 5,461 7,876
Gain (loss) on sale of
equipment 3 15 (46) 1,353
(Loss) income before
income taxes (22,399) 11,063 (58,047) 30,342
Provision for income
taxes - 3,986 24,338 11,119
Net (loss) income $ (22,399) $ 7,077 $ (82,385) $ 19,223
Basic (loss) earnings
per share $ (0.74) $ 0.24 $ (2.73) $ 0.65
Weighted average common
shares outstanding 30,323,356 29,880,442 30,190,556 29,655,966
Diluted (loss)
earnings per share $ (0.74) $ 0.23 $ (2.73) $ 0.61
Weighted average
common and
dilutive securities
outstanding 30,323,356 31,241,801 30,190,556 31,655,258
Condensed Consolidated Balance Sheets
(Amounts in thousands, except share and per share amounts)
Sept. 29, 2001 Dec. 31, 2000(a)
Assets (unaudited)
Current assets:
Cash and cash equivalents $23,857 $95,116
Marketable securities 31,612 53,254
Accounts receivable 12,550 21,794
Inventory 17,736 22,969
Prepaid expenses and
other current assets 5,328 3,475
Deferred taxes - 3,035
Total current assets 91,083 199,643
Marketable securities 54,252 17,791
Property and equipment:
Equipment and furniture 135,654 137,819
Leasehold improvements 33,964 32,767
Projects in process 17,518 19,083
Less accumulated depreciation
and amortization 88,454 83,034
98,682 106,635
Goodwill and other intangibles,
net of amortization 20,354 -
Other assets 6,327 5,302
Deferred taxes - 23,102
$270,698 $352,473
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $11,541 $10,985
Accrued liabilities 5,091 6,824
Accrued restructuring
costs 1,542 597
Current maturities of
long-term debt 262 1,000
Current maturities of
capital lease obligations 151 250
Total current liabilities 18,587 19,656
Other long-term liabilities 2,281 1,985
Long-term debt, less
current portion 45 2,000
Stockholders' equity 249,785 328,832
Total stockholders' equity
and liabilities $270,698 $352,473(a) The condensed balance sheet at December 31, 2000 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. 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, 2000. 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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