Anadigics predicts third quarter shortfall
The company issued a press release to confirm that its outlook for the June quarter remains on track, with an expected revenue of approximately $23 million and a loss per share of $0.29. These figures represent sequential improvements of 18% and 22%, respectively, from the March quarter, on the strength of strong CDMA wireless product order flow from existing customers and from the ramp of a second tier-one CDMA customer.
"We re pleased with the market share gains we ve achieved in CDMA handsets," said Bami Bastani, president and CEO. "We are the CDMA standard s fastest-growing power amplifier module supplier, and are now on track to garner over 20% share by the fourth quarter of this year. We have seen a dramatic increase in our customer base, and our gains also reflect in large part the marketplace success of these customers, particularly in the 1xRTT arena."
Third quarter outlook hits shares hard
In the third quarter, Anadigics estimates that its revenue will fall to around $21 million and its loss per share will be $0.33, which is around 10 cents more than previously expected by analysts. At one stage, Anadigics shares had fallen by almost 39% to below $4.45 before recovering to close at $5.24.
The company said it was expecting the revenue shortfall as a result of softness in the TDMA handset market, which is an older technology that competes with CDMA and GSM. The company broke out the results as $11 million from wireless and $10 million from its broadband customers. Broadband revenue should remain level consistent with industry trends in the cable set-top box and infrastructure markets, said Anadigics, which regards the third quarter shortfall as a blip.
"The trend in power amplifier orders for TDMA handsets, while disappointing, is not surprising, given the transition from TDMA to GSM in the US market," added Bastani. "We expect a resumption of sequential revenue and EPS growth in the fourth quarter."
