Anadigics Q3 results are 'on target'
Sales of $18.9 million are in line with expectations but revenue is down
Anadigics has reported third quarter 2014 net results with sales of $18.9 million, in line with guidance. While revenue was down 18.9 percent, sequentially, non-GAAP gross margin expanded 321 basis points to 16.0 percent, exceeding guidance.
As of September 27, 2014, cash and cash equivalents totaled $13.5 million, or net cash of $9.5 million, after excluding $4.0 million drawn under the company's credit facility.
"Anadigics has made tremendous progress during the last three months towards realising both our financial and market goals," said Ron Michels, chairman and CEO of Anadigics . "Our new product launches have been very well received in their targeted markets, and have led us to enjoy a significant increase in customer engagements and strategic design win activity. Due to these improvements, we believe we are on target to realise the strategic goals I outlined last June."
GAAP net loss for the third quarter of 2014 was $6.7 million, or ($0.08) per diluted share compared to $11.2 million, or ($0.13) per diluted share in the third quarter of 2013. Non-GAAP net loss for the third quarter of 2014 was $5.7 million, or ($0.07) per share compared to $9.5 million, or ($0.11) in the third quarter of 2013.
"I am pleased with our improving financial performance driven by a 321 basis-point increase in non-GAAP gross margin and a greater-than 18 percent reduction in non-GAAP operating expenses. These operational improvements helped enable net cash of $9.5 million at quarter end, and looking ahead, we expect only a modest further reduction in net cash by year end," said Terry Gallagher, vice president and CFO. "Lastly, we recently closed with Silicon Valley Bank on a new, more flexible $10 million credit facility that, if needed, provides additional capital to fund growth."
Anadigics' financial outlook for Q4 is that revenue will increase sequentially by 8 "“ 12 percent; non-GAAP gross margin is expected to improve sequentially by approximately 200 basis points; and operating expenses will be approximately flat sequentially