News Article
Anadigics revenues slide to $43.5 million
While Broadband net sales in the next quarter are expected to increase sequentially by approximately 35%, it will not be sufficient to offset the decline in Wireless sales which are expected to sequentially decrease by 25 to 30%.
Anadigics, a provider of semiconductor solutions in the broadband wireless and wireline communications markets, reported first quarter 2011 net sales of $43.5 million which were flat to the same year ago period and down 27.8% from the prior quarter.
GAAP net loss for the first quarter of 2011 was $10.7 million, or ($0.16) per share. As of April 2, 2011, cash, cash equivalents and short and long-term marketable securities totalled $104 million.
Outlook for the Second Quarter 2011
Shipments to our largest North American wireless customer will decrease during the second quarter resulting in an expected sequential decrease in Wireless net sales of approximately 25% to 30%. While Broadband net sales are expected to increase sequentially by approximately 35%, it will not be sufficient to offset the decline in Wireless sales.
As such, total Company net sales for the second quarter of 2011 are expected to decrease sequentially by approximately 15% - 19% to a range of $35 - $37 million from the first quarter revenue of $43.5 million. Net loss on a GAAP basis for the second quarter is expected to be approximately ($0.22) to ($0.23) per share, which includes a restructuring charge of $0.02 per share.
“The decrease in net sales at our largest customer is the result of programs reaching end of life and a loss in market share related to the customer’s change in chipset vendors that do not utilize our power amplifiers,” commented Ron Michels, President and Chief Executive Officer.
“We remain actively engaged with this large customer and its chipset vendors on next generation platforms. Additionally, we are proactively taking steps to align our cost base with revenues over the short-term, while prudently allocating resources to further expand our technology base and product offerings going forward. New product development will be a critical area of focus as we increase the breadth of our product portfolio and enhance our commitment to innovation and technology leadership. In fact, we are already heavily engaged with all of our customers and are actively pursuing several new opportunities across both Wireless and Broadband.”
“While I am disappointed in our revenue guidance for the second quarter, I want to emphasise that our foundation for future success is still intact. We have an expanding technology pipeline and strong relationships with our current customers. Together our solid balance sheet, prudent cost reductions and investment in future products will enable us to reposition Anadigics as an industry leader. Despite the significant near-term challenges that we face, I am committed to returning our company to growth and profitability and becoming more effective at everything that we do.”
Anadigics' senior management will conduct a conference call today at 8:30 AM 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 dialling 800-642-1687 using conference ID 60793547 (available until May 10, 2011).
