ANADIGICS Reports Fourth Quarter and Full Year 2000 Results

Source: Anadigics

- Net Sales Increase 31% Full Year 2000 to $172.3M; Earnings up 91% - Fourth Quarter Revenues $30.7 million; EPS ($0.01)

Warren, NJ. ANADIGICS, Inc. (Nasdaq: ANAD) today reported net sales of $30.7 million for the fourth quarter ended December 31, 2000, a 24% decline from the $40.1 million reported in the fourth quarter of 1999. The company reported a net loss of $0.3 million and a loss per share of $0.01, compared with the net income of $4.4 million and diluted earnings per share of $0.15 reported in the prior year. Sequentially, net sales were down 40% from the 2000 third quarter.

The net loss reported in the fourth quarter included a pretax charge for inventory reserves of $1.3 million and an income tax benefit of $0.8 million (reflecting the company s full-year effective tax rate of 34% versus its previous estimate of 37%). The net loss excluding these two items remains unchanged at $0.3 million and $0.01 per share.

The fourth quarter revenues reflect continuing changes in the communications markets and further inventory corrections at major customers. Broadband revenues were $23.8 million (cable: $18.1 million and fiber: $5.7 million), a 36% increase from the prior year and a 22% decline from the third quarter. As expected, wireless revenues in the fourth quarter were $6.9 million, down 70% from the same period last year and 67% from the third quarter.

Gross margin in the fourth quarter of 40.0%, excluding the inventory reserve, decreased from 51.4% in the third quarter. For the same period last year, gross margin was 48.1%. The decline in gross margin resulted from the effect of lower sales levels on the absorption of overhead costs in the fabrication facility.

"Our fourth quarter performance was affected by overall communications market conditions and inventory corrections at certain customers," remarks Dr. Bami Bastani, President and Chief Executive Officer. "We continue to focus on introduction of new products and diversification of our customer base and the results of our efforts are expected to materialize in first half 2001."

Full-year 2000 net sales were a record $172.3 million, up 31% from the $131.2 million reported for the full-year 1999. Broadband revenues comprised 56% (or $95.7 million) of total sales and increased 36% from 1999. Wireless revenues ($76.5 million) increased 26% from 1999. Net income increased 91% to $18.9 million, a record for the company, and diluted earnings per share of $0.60 increased 54% from 1999 (excluding special charges).

"Despite a disappointing fourth quarter, the year as a whole was quite successful for ANADIGICS," continues Dr. Bastani. "We introduced approximately 25 new products in 2000 including our line of InGaP HBT power amplifiers, the PicoTunerTM, which is a cable industry breakthrough, and the first of a family of OC-192 fiber optic products. We began sampling with Tier I and II OEMs, and have achieved multiple design wins."

The Company s balance sheet remains strong. The Company s cash position, including marketable securities, was $166 million at the end of the year.

HIGHLIGHTS OF THE YEAR

- NEW PRODUCTS - 3-Volt HBT Power Amplifiers Shipment of the Company s first high-efficiency InGaP HBT power amplifier samples to major wireless handset manufacturers. The introduction of these HBT power amplifiers more than doubles the available market for ANADIGICS wireless products. - NEW PRODUCT - InGaP HBT Power Amplifier for GSM/DCS and GPRS Data-Enabled Wireless Handsets Latest product in the family of 3-Volt, InGaP HBT power amplifiers designed for GSM, TDMA, CDMA and 3G wireless handsets. This power amplifier delivers dual band (GSM/DCS) voice operation as well as GPRS data services capability in a single, highly integrated module solution. - DESIGN WIN - Reverse Amplifier Is Selected By Motorola for Communications Gateway ip Telephony Product A design win was achieved for a reverse amplifier in Motorola s CentriQ 1000 IP Telephony gateway product, which provides customers up to four separate telephone lines, support for telephone features like call waiting, high-speed data via an integrated DOCSIS-based cable modem and a distribution point for video services over cable. - NEW PRODUCTS - Expanded Wireless Product Portfolio with Introduction of New Family of pHEMT Switches A new family of pHEMT switches was introduced that utilize the Company s six-inch GaAs manufacturing technology. These innovative RF switches provide cost-effective solutions that meet the rigorous performance requirements of next generation multi-band GSM handsets. - NEW PRODUCT - InGaP HBT Transimpedance Amplifier (TIA) for OC-192 Fiber Optic Systems ANADIGICS announced a leading-edge 10 gigabits per second TIA for use in high-capacity fiber-optic receivers. Since this TIA is manufactured using InGaP heterojunction bipolar transistor (HBT) technology, it is uniquely suited for 10 Gb/s and DWDM applications. - NEW PRODUCT - PicoTuner(TM) A fully integrated, dual conversion RF data tuner. Delivers DOCSIS performance while eliminating the need for up to 50 off-chip components required by other IC-based tuner designs. A lower cost, yet higher performance, industry revolution that also reduces customer time to market by requiring less design and manufacturing time. - MILESTONE - Over 100 Million ICs Shipped To Date for Broadband Network Applications The Company announced that it has shipped over 100 million industry-leading broadband RFICs for cable systems and fiber optic networks.

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, 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: ANADIGICS, INC. Thomas Shields Tel: 908/412-5995 or Richard Hantke Tel: 908/791-6043