ANADIGICS Reports Second Quarter 2001 Results
Revenue of $18.9 million and Adjusted EPS Loss of $0.48
Warren, NJ. ANADIGICS, Inc. (Nasdaq: ANAD) today reported net sales of $18.9 million for the second quarter ended June 30, 2001, compared with $47.5 million reported in the second quarter of 2000. Sequentially, net sales were down from $28.5 million in the first quarter. The net loss was $14.5 million or ($0.48) per share, excluding special charges and acquisition related costs. Adjusted gross margin in the quarter was 1.6% due to higher than expected start-up costs associated with a steep ramp in HBT module production and continued low fab utilization.
As previously announced, ANADIGICS recorded special charges of $36.1 million during the quarter. These included cash-related charges of $0.9 million resulting from a 10% reduction in workforce and lease terminations. Non-cash related charges were $35.2 million, resulting from the write-offs of the deferred tax asset balance ($26.8 million), certain inventories ($7.6 million) and impaired assets ($0.8 million). In addition, the Company completed the acquisition of Telcom Devices Corporation and incurred related charges in the quarter of $4.8 million. Including these special charges, the net loss was $55.4 million or ($1.84) per share.
"It obviously has been a difficult year for the communications industry. We were able to deliver revenue results that were slightly better than expectations, however, the current low production volume environment and the ramp of our HBT module assembly process have certainly put pressure on our gross margins," remarked Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "During the quarter, we restructured the organization and we continue to take action to align our cost structure with business conditions. We remain confident that the Company s gross margin target of 40% - 50% is achievable as new products are introduced, business conditions improve, and we return to normal fab utilization levels."
In the second quarter, broadband product line revenues were $13.0 million (cable - $8.4 million; fiber - $4.6 million). Wireless revenues were $5.9 million.
"During the second quarter we reached several significant milestones," continued Dr. Bastani. "In wireless, we entered production with our InGaP HBT PA modules, displacing our MMIC business with fast growing CDMA modules. In fiber, our OC-768 (40 Gb/s) InP fiber products lead the industry in performance and we received evaluation orders for our travelling wave amplifiers. Customer feedback and design win activity in our wireless and broadband markets remain strong and we are optimistic that our new products will be the major drivers of future growth."
The Company s balance sheet remains strong, with cash and marketable securities totaling $124 million at June 30, 2001.
OUTLOOKThe Company expects a decline in its third quarter revenue to $15.5 million, with an EPS loss of ($0.55) per share. Third quarter revenue expectations reflect a change in production ramp schedules of certain wireless handset platforms, the timing of new design win opportunities and continued softness in the broadband markets. For the fourth quarter we anticipate a sequential sales increase in wireless fueled by increased HBT module production and anticipated recovery in cable businesses. ANADIGICS will conduct a mid-quarter update via conference call on September 10, 2001.
HIGHLIGHTS OF THE QUARTER
OUTLOOK
CONFERENCE CALL
ANADIGICS senior management will conduct a conference call today at 9:00 AM Eastern time. A live audio Webcast will be available at www.anadigics.com. A recording of the call will be available from approximately two hours after the call until July 30 on the ANADIGICS Web site or by dialing (800) 642-1687 (passcode 10032). 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.
Contact: Thomas Shields Chief Financial Officer Tel: 908-412-5995 Richard Hantke Director, Investor Relations Tel: 908-791-6043 Tim Blanke Corporate Communications Mgr. Tel: 908-668-5000 ext. 5735
Thomas Shields Chief Financial OfficerTel: 908-412-5995
Richard Hantke Director, Investor Relations
Tel: 908-791-6043
Tim Blanke Corporate Communications Mgr.
Tel: 908-668-5000 ext. 5735
Web site: http://www.anadigics.com
