Anadigics' losses up but Q2 sales better than expected
Recent restructuring will drive greater returns, says company
RF company Anadagics has reported second quarter 2014 net sales of $23.3 million, slightly above revised guidance. Revenue was flat sequentially while non-GAAP gross margins expanded 183 basis points to 12.8 percent.
GAAP net loss for the second quarter of 2014 was $15.0 million, or ($0.18) per diluted share compared to $13.8 million, or ($0.17) in the second quarter of 2013. Non-GAAP net loss for the second quarter of 2014 was $7.8 million, or ($0.09) per share compared to $12.0 million, or ($0.14) in the second quarter of 2013.
As of June 28, 2014, cash, cash equivalents and restricted cash totaled $16.7 million, or net cash of $9.7 million, after excluding $7.0 million drawn under the company's credit facility.
As part of the strategic restructuring announced in June, the company now puts revenue in two categories: Infrastructure and Mobile. Infrastructure includes CATV, small cell, WiFi, M2M, optical and other general RF applications. Mobile comprises WiFi and Cellular products primarily for smartphone, handset and tablet markets.
"With the restructuring, Anadigics is better positioned to compete in infrastructure markets where our products are differentiated and we can be more selective in targeting mobile applications that are better aligned to our profitability objectives," said Ron Michels, chairman and CEO of Anadigics. "Combined with a significantly lower operating cost structure, we expect these changes in product focus to drive greater returns for our shareholders. Design-win traction with existing and new customers for both mobile and infrastructure applications has been strong and we are excited about the company's transformation."
"In line with our strategic restructuring, we expect total revenue for the third quarter to decline sequentially by 18 to 20 percent, driven principally by reductions in legacy mobile," said Terry Gallagher, vice president and CFO. "We anticipate a sequential gross margin expansion of approximately 200 basis points resulting from a richer product mix and lower manufacturing costs. With our strategic restructuring actions and other improvements, we expect operating expenses to decline by more than 15 percent."
