ANADIGICS Reports Third Quarter 2002 Results In Line With Previous Guidance
October 21, 2002
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ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, today reported net sales of $21.3 million and a loss per share of $0.46 (GAAP basis) for the third quarter ended September 28, 2002. After adjusting the loss to exclude special charges and gains, as well as acquisition accounting, the loss per share was $0.33 for the quarter. As previously reported on September 23, 2002, the Company has recorded special charges during the quarter totaling $16.0 million (the previous range was $15 to $17 million), with non-cash charges representing $13.6 million. These special charges were partially offset by a $12.6 million gain on the repurchase and retirement of a portion of its debt. Wireless revenues in the quarter were $11.0 million, reflecting an increase of $4.9 million or 80% over the prior year. CDMA revenue grew $7.5 million versus last year reflecting an expanded customer base and increased market share gain in CDMA. Sequentially, Wireless revenues were down $2.1 million, which was partially due to lower ASPs and declining TDMA revenue. Revenues in Broadband were $10.3 million, flat from last year and the prior quarter; however, cable settop box and cable infrastructure IC sales increased $1.0 million over the prior year and $0.7 million sequentially. "ANADIGICS is successfully cultivating new customers and expanding existing relationships to achieve significant market share gains," remarked Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "Our recent successes include new handset design wins in China, Korea, and Taiwan. We are currently engaged in the design-in phase with more than 25 handset OEM/ODM customers, including tier one manufacturers, for greater than 50 wireless handset platforms. This success is due to the industry leading performance and reliability of our InGaP PA products. We anticipate these activities to contribute significantly to Wireless revenues in the mid-2003 time frame, as customers ramp to production volumes." The Company's balance sheet remains very strong as cash and marketable securities totaled $156.5 million at September 28, 2002. Cash and marketable securities, net of long-term borrowings, was $89.8 million, a $5.0 million improvement over the second quarter 2002. OUTLOOK The Company estimates that fourth quarter 2002 revenue will approximate $19 to $20 million, reflecting flat sales in Wireless and lower Broadband revenues. The EPS loss is estimated to improve by $0.05 to $0.07 over the third quarter to approximately $0.26 to $0.28 per share. HIGHLIGHTS OF THE QUARTER ANADIGICS Announces Production Orders from New Korean Customer for 4mm x 4mm CDMA Power Amplifiers On September 30, 2002 the Company announced that it has started production shipments for new orders from a new Korean customer for its recently launched AWT6114 CDMA power amplifier. Part of ANADIGICS' new family of 4mm by 4mm CDMA power amplifier (PA) modules, the AWT6114 meets OEM packaging requirements for smaller form factor PAs in wireless handsets. Specifically designed for the Korean KPCS band, the high linearity AWT6114 delivers higher power-added efficiency at all power levels than its predecessors, and provides greater standby and talk-times for new handsets targeting the Korean domestic wireless marketplace. ANADIGICS Ships CDMA Power Amplifiers to Airprime for use in Wireless PDA Modems On September 18, 2002 the Company announced that it is shipping its CDMA power amplifiers to AirPrime, a leading producer of CDMA data products for OEM customers, for use in several new PDA (personal digital assistant) wireless modem platforms. AirPrime selected ANADIGICS' AWT6106 PCS PA for use in the Helium 1x EM3000 embedded module platform family as well as both the AWT6106 and the AWT6111 cellular band PAs for use in the Helium 1x EM3225 dual-band module. In addition, ANADIGICS' AWT6109 Korean PCS band module was chosen for AirPrime's PC5230 PCM/CIA wireless modem." ANADIGICS Adds RF pHEMT Switch to its Growing Wireless Product Portfolio On September 10, 2002, the Company announced the launch of a high linearity, multipurpose RF switch designed for medium power applications in wireless handsets. Developed using ANADIGICS' pHEMT (pseudomorphic electron mobility transistor) manufacturing capabilities, the AWS5518 operates with low current on its control lines to ensure a longer battery-life for wireless devices. ANADIGICS Introduces Three New Small Form Factor CDMA Power Amplifier Modules On July 29, 2002, the Company announced the launch of three new 4mm x 4mm high linearity power amplifier (PAs) modules for use in wireless CDMA handsets and personal digital assistants (PDAs). These new power amplifiers are 55 percent smaller than a standard 6mm x 6mm-power amplifier module package. The new high linearity modules offer industry-leading standards of size while delivering excellent power-added efficiency at high and low power, which translates to greater talk time for handsets. 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 Website or by dialing 402-220-1549.
ANADIGICS, Inc. Three Months Ended September 28, 2002
As Reported Adjustments Adjusted
Net sales $21,288 $-- $21,288
Cost of sales 21,225 (2,239)(1,2) 18,986
Gross profit 63 2,239 2,302
Research and
development expenses 7,586 -- 7,586
Selling and
administrative expenses 5,463 (270)(2) 5,193
Restructuring and
other charges 2,286 (2,286)(3) --
Asset impairment charges 3,087 (3,087)(4) --
Goodwill impairment charge 8,043 (8,043)(5) --
Operating loss (26,402) 15,925 (10,477)
Interest income 1,543 -- 1,543
Interest expense (1,307) -- (1,307)
Impairment on investments (390) 390 (4) --
Gain on repurchase of notes 12,581 (12,581)(6) --
Other expense (5) -- (5)
Net loss $(13,980) $3,734 $(10,246)
Basic and diluted
loss per share $(0.46) $(0.33)
Weighted average common
and dilutive securities
outstanding 30,585,540 30,585,540
(1) Includes inventory charge on defective raw materials purchased from a
ANADIGICS, Inc. Three Months Ended Nine Months Ended
Sept. 28, Sept. 29, Sept. 28, Sept. 29,
2002 2001 2002 2001
Net sales $21,288 $16,340 $63,830 $63,757
Cost of sales 21,225 18,197 59,062 65,636
Gross profit (loss) 63 (1,857) 4,768 (1,879)
Research and development
expenses 7,586 9,478 22,863 29,501
Selling and administrative
expenses 5,463 6,872 16,398 20,881
Restructuring and other
charges 2,286 1,195 5,001 2,095
Asset impairment charges 3,087 4,506 6,331 5,306
Goodwill impairment charge 8,043 -- 8,043 --
Purchased in-process
research and development -- -- -- 3,800
Operating loss (26,402) (23,908) (53,868) (63,462)
Interest income 1,543 1,515 4,959 5,599
Interest expense (1,307) (9) (4,171) (138)
Impairment on investments (390) -- (390) --
Gain on repurchase of notes 12,581 -- 12,581 --
Other (expense) income (5) 3 (3) (46)
Loss before income taxes (13,980) (22,399) (40,892) (58,047)
Provision (benefit) for
income taxes -- -- -- 24,338
Loss before cumulative
effect of accounting
change (13,980) (22,399) (40,892) (82,385)
Cumulative effect of
accounting change -- -- (8,010) --
Net loss $(13,980) $(22,399) $(48,902) $(82,385)
Basic and diluted loss
per share
Loss before cumulative
effect of accounting
change $(0.46) $(0.74) $(1.34) $(2.73)
Net loss $(0.46) $(0.74) $(1.60) $(2.73)
Weighted average common
and dilutive securities
outstanding 30,585,540 30,323,356 30,578,630 ,190,556
ANADIGICS, Inc. September 28, 2002 December 31, 2001
Assets (unaudited)
Current assets:
Cash and cash equivalents $18,834 $63,102
Marketable securities 70,535 55,364
Accounts receivable 12,601 10,200
Inventory 13,008 14,661
Prepaid expenses and
other current assets 3,979 6,635
Total current assets 118,957 149,962
Marketable securities 67,149 81,629
Property and equipment, net 73,489 90,483
Goodwill and other intangibles,
net of amortization 2,580 19,443
Other assets 3,695 5,397
$265,870 $346,914
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $9,169 $9,115
Accrued liabilities 5,098 6,549
Accrued restructuring costs 4,156 1,898
Current maturities of long-term debt 46 244
Current maturities of capital
lease obligations -- 94
Total current liabilities 18,469 17,900
Other long-term liabilities 2,701 2,378
Long-term debt, less current portion 66,700 100,000
Stockholders' equity 178,000 226,636
$265,870 $346,914 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, 2001. Actual results could differ materially from the Company's forward-looking statements. 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, including the statements in this press release regarding revenue expectations, cost reduction initiatives, and strategic alternatives, are forward-looking statements. |
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