ANADIGICS Comments on Third and Fourth Quarter 2000 and Calendar Year 2001 Outlook
Source: Anadigics
Third Quarter in Line With Expectations, Softness for Wireless in Fourth Quarter
WARREN, N.J. ANADIGICS (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, today commented on the outlook for its third and fourth quarter, 2000. While the Company anticipates a record third quarter 2000 in revenue and EPS, it noted that its No. 1 wireless customer has recently formally notified its suppliers, including ANADIGICS, that difficulties with component supply due to a fire at a supplier s factory earlier this year has caused it to reduce production and forced it to balance stock levels by rescheduling and in some cases canceling purchase orders with its suppliers. Consequently, ANADIGICS anticipates a total sequential revenue shortfall of 30% - 35% from a third quarter revenue target of approximately $51 million, which will result in a substantial reduction in fourth quarter earnings from the third quarter.
``The outlook for 2001 continues to be strong with anticipated year-over-year growth in excess of 50%, remarks Dr. Bami Bastani, President & CEO of ANADIGICS. ``We expect the inventory corrections to be completed by the end of this year and anticipate a return to double-digit sequential revenue and earnings growth in the first quarter 2001. While our relationship with our No. 1 wireless customer remains excellent, we continue to expand our wireless customer base with extensive HBT PA module and MMIC activities and we have realized HBT design wins in 3 volt GSM platforms. Our broadband cable and fiber business continues to gain market share and add new customers. All of these activities meant to diversify our customer base, expand product content in our target markets, and grow our business are expected to have a positive impact on revenues beginning in 2001.
ANADIGICS (NASDAQ: ANAD - news) 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. For more information on ANADIGICS, visit the Company s Web site at www.anadigics.com
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, 1999. 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.
Contact:
Press Contacts: Richartz Fliss Clark & Pope Debra Norman/Allan Fliss, 973/627-8180, norman@rfcp.com ANADIGICS, Inc., Tim Blanke, 908/668-5000, tblanke@anadigics.com
Investor Relations: ANADIGICS, Inc., 908/668-5000 Tom Shields, Chief Financial Officer, tshields@anadigics.com Rich Hantke, Director, Investor Relations, rhantke@anadigics.com
Richartz Fliss Clark & Pope
Debra Norman/Allan Fliss, 973/627-8180, norman@rfcp.com
ANADIGICS, Inc., Tim Blanke, 908/668-5000, tblanke@anadigics.com
Investor Relations:
ANADIGICS, Inc., 908/668-5000
Tom Shields, Chief Financial Officer, tshields@anadigics.com
Rich Hantke, Director, Investor Relations, rhantke@anadigics.com
E-mail: rhantke@anadigics.com
Web site: http://www.anadigics.com
