ANADIGICS Comments on Outlook for March and June 2001 Quarters
Source: Anadigics
Warren, NJ. ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, today commented that its first quarter (March) 2001 revenues are on track at $28.5 million. As highlighted by the Company s peers and customers in their March quarter pre-announcements, the slowing economy has created low revenue visibility for the first half of 2001. As such, the Company is anticipating that the first quarter industry softness will continue into the second quarter, and that revenues could be 25% below the first quarter.
The lower revenues, as well as the Company s strategy to keep inventories in check, has resulted in lower fab utilization. Gross margins are expected to temporarily dip into the 25% to 30% range for the first half of 2001. A loss per share of approximately ($0.14) is now expected for the current quarter, with an estimated loss per share of ($0.25) in the second quarter.
"Although business conditions are soft, customer interest in our new products is strong and we do expect a recovery by the end of this year," remarked Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "We have an extremely strong balance sheet and we continue to invest in research and development for our new products and in marketing and sales efforts. At the same time we are reducing spending in discretionary categories.
"The market slowdown has opened a window of opportunity as our existing and future customers search for ways to reduce cost and differentiate their products," continued Dr. Bastani. "Our world-class 6" InGaP HBT technology platform has opened the door to a myriad of new customers in both wireless and fiber optic markets. The customer response to our 3-volt GSM and CDMA power amplifiers has been overwhelming. InGaP HBT is also the platform for our OC-192 fiber products, which we should begin shipping by the third quarter. And in cable we continue to expand our customer base and gain market share despite the broadband market conditions."
ANADIGICS senior management will conduct a conference call tomorrow, Wednesday March 14, 2001 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 on the ANADIGICS website or by dialing (800) 642-1687 (pass code 971368).
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.
ANADIGICS senior management will conduct a conference call tomorrow, Wednesday March 14, 2001 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 on the ANADIGICS website or by dialing (800) 642-1687 (pass code 971368).
Contact: ANADIGICS, INC. Thomas Shields Tel: 908/412-5995 or Chief Financial Officer Richard Hantke Tel: 908/791-6043 Director, Investor Relations
ANADIGICS, INC.
Thomas Shields
Tel: 908/412-5995
or
Chief Financial Officer
Richard Hantke
Tel: 908/791-6043
Director, Investor Relations
Web site: http://www.anadigics.com
