ANADIGICS Announces Stronger Wireless Demand in Fourth Quarter
WARREN, NJ. ANADIGICS, Inc., a leading supplier of wireless and broadband communications solutions, today announced that the Company has seen increased demand in the 2001 fourth quarter for its CDMA and TDMA wireless products. The Company now expects wireless revenues to reach approximately $13.0 to $13.5 million, versus previous expectations of $11.0 to $11.5 million. Broadband (Cable and Fiber) revenue remains on track at $7.0 to $7.5 million.
``We are pleased with the strength in our wireless product line in the fourth quarter, with our anticipated overall sequential revenue growth from the third quarter, and with our increased share of the CDMA handset market, which represents the fastest growing part of the wireless market, remarked Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. ``Additionally, we remain focused on improving our gross margin and reaching profitability, while maintaining a strong balance sheet.
The Company is further increasing its presence in the wireless market with a new family of GSM InGaP HBT products. These products are being sampled with customers in the 2001 fourth quarter and 2002 first quarter timeframe.
The Company is on track with its initiatives to reduce manufacturing costs and to reduce operating expenses 30% by the 2002 first quarter. In addition to actions already implemented, the Company plans to partially outsource its test operations, which over time is expected to improve gross margin by lowering test cost per unit. Moreover, the Company is evaluating strategic alternatives for its Fiber Optics product line, which could include a possible sale of its Fiber Optics product line. The Fiber Optics product line is expected to represent 5% of 2001 fourth quarter revenue.
ANADIGICS will conduct its regularly scheduled mid-quarter update via conference call on December 10, 2001.
ANADIGICS, Inc. 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. 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, product sampling and strategic alternatives, are forward-looking statements.
Contact:
ANADIGICS, Inc., Warren NJ Thomas Shields, 908/412-5995
Investor Relations: Richard Hantke, 908/791-6043 Media: Tim Blanke, 908/668-5000
ANADIGICS, Inc., Warren NJ Thomas Shields, 908/412-5995
Investor Relations: Richard Hantke, 908/791-6043 Media: Tim Blanke, 908/668-5000
