ANADIGICS Announces Fourth Quarter and Full Year 2009 Results

ANADIGICS, Inc. (Nasdaq:ANAD), a leading provider of semiconductor solutions in the broadband wireless and wireline communications markets, reported fourth quarter 2009 net sales of $41.8 million, an increase of 13.9% sequentially and a decrease of 7.6% from the fourth quarter of 2008.  Revenue for the year ended 2009 was $140.5 million, down 45.6% from 2008.

As of December 31, 2009, cash, cash equivalents and short and long-term marketable securities totaled $92.5 million.

Net loss for the fourth quarter of 2009 was ($8.0) million, or ($0.13) per share.  Net loss for the year ended 2009 was ($57.1) million, or

($0.92) per share. Non-GAAP net loss for the fourth quarter of 2009 was

($3.2) million, or ($0.05) per share.  Non-GAAP net loss for the year ended 2009 was ($33.7) million or ($0.54) per share.

"Calendar year 2009 was a pivotal year for ANADIGICS.  In late 2008 we laid out specific key initiatives for 2009 that centered specifically on rebuilding customer relationships, achieving operational excellence, and preserving cash and I am pleased to report that we accomplished all of those goals.  I believe that we ended 2009 a stronger company," said Mario Rivas, president and chief executive officer.  "In 2010 we have begun to generate strong momentum with our new product pipeline and are now able to fully leverage our operational excellence, which together set the stage for the achievement of our growth and profitability goals."

Outlook for the First Quarter 2010

Tom Shields, chief financial officer commented, "In contrast to normal seasonality, we are seeing very strong growth in our Wireless bookings in the first quarter of 2010.  As such, we expect Wireless net sales to

increase approximately 20% sequentially.   This strength is expected to

offset the previously anticipated weakness in WLAN.  Therefore, total net sales in the first quarter of 2010 are anticipated to be in line with net sales of $41.8 million reported in the fourth quarter of 2009.

 Net loss per share on a GAAP basis for the first quarter of 2010 is expected to be approximately ($0.09) to ($0.10).  Non-GAAP loss per share, excluding non-cash stock compensation expense, is expected to be approximately ($0.05) to ($0.06)."  The net loss and non-GAAP loss per share are based on an estimated diluted weighted average outstanding common share count of 64 million.

The statements regarding the Company's anticipated future performance are forward looking and actual results may differ materially. Please see safe harbor statement at the end of this press release.

This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP net income or loss and non-GAAP income or loss per share. Management uses non-GAAP net income or loss and non-GAAP income or loss per share to evaluate the company's operating and financial performance in light of business objectives, for planning purposes, when publicly providing our business outlook and to facilitate period-to-period comparisons. ANADIGICS believes that these measures are useful to investors because they enhance investors'

ability to review the company's business from the same perspective as the company's management and facilitate comparisons of this period's results with prior periods. These non-GAAP measures exclude charges related to stock-based compensation, restructuring and asset impairments, impairment of auction rate securities, the refund of certain R&D tax credits and non-comparative charges in 2008 and 2009 resulting from management separations, the settlement of a commercial dispute with a customer, cancellations and impairments on equipment and inventory reserves associated with reduced demand. Non-GAAP measures are used by some investors when assessing the ongoing operating and financial performance of our Company. These financial measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Management acknowledges that stock-based compensation is a recurring cost and is an important part of our employee's compensation and impacts their performance. However the expense is non-cash in nature and there are various valuation methodologies and assumptions used in determining stock-based compensation that may be unrelated to operations, such as volatility and current interest rates. The presentation of the additional information should not be considered a substitute for net income or loss or income or loss per share prepared in accordance with GAAP.

Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP measures as compared to the most directly comparable GAAP financial measures are (i) they may not be comparable to similarly titled measures used by other companies in ANADIGICS industry, and (ii) they exclude financial information that some may consider important in evaluating our performance. We compensate for these limitations by providing reconciliations of reported net income or loss and income or loss per share to non-GAAP net income or net loss and non-GAAP income or loss per share, respectively, within this press release.

Conference Call

ANADIGICS' senior management will conduct a conference call today at 5:00 PM Eastern time. A live audio Webcast will be available at www.anadigics.com/investors. A recording of the call will be available approximately two hours after the end of the call on the ANADIGICS Web site or by dialing 800-642-1687 conference ID 54112449 (available until February 24, 2010).

Recent Highlights

 

February 10, 2010 - ANADIGICS Unveils Industry's Smallest Dual-Band CDMA Power Amplifier for Latest-Generation Mobile Handsets February 3, 2010 - ANADIGICS Delivers 3.5 GHz Full Band Power Amplifier for Growing Mobile WiMAX Market February 1, 2010 - Novatel Wireless Selects ANADIGICS Power Amplifiers for HSPA+ Mobile Broadband USB Modems January 26, 2010 - Altair Semiconductor and ANADIGICS Team Up to Drive LTE Technology Development January 5, 2010 - ANADIGICS' New 5 GHz WLAN Power Amplifier Increases Range and Throughput for WiFi and WHDITM Applications December 14, 2009 - ANADIGICS Names Tong Hsing Supplier of the Year November 25, 2009 - ANADIGICS Announces Industry's First Family of Gateway Splitters Featuring Up to Eight RF Outputs November 2, 2009 - ANADIGICS Powers Samsung's New 3G TD-SCDMA Handset for China October 28, 2009 - ANADIGICS Leverages CATV Technology Edge to Deliver New High Performance 1GHz Hybrid Line Amplifiers