Disappointing Q1 results for Anadigics
The RF company Anadigics has reported first quarter 2015 net sales of $18.4 million, a sequential decrease of 11.7 percent and in line with prior guidance. Infrastructure revenues, however, grew 23.3 percent sequentially to $12.0 million, and Non-GAAP gross margin increased sequentially by 455 basis points. The market responded with a 25.5 percent fall in the share price.
"We are very pleased with the 23.3 percent sequential increase in infrastructure revenues in the first quarter. The resulting financial performance was enabled by our ongoing strategic shift to an Infrastructure business model," said Ron Michels, chairman and CEO. "While we anticipate some near-term market headwinds in Infrastructure, we believe this will be temporary, and our current outlook for long-term growth remains positive."
"In line with our continued migration to a leaner Infrastructure business model, we are implementing the next phase of cost improvement measures designed to match our supply capability with demand," said Terry Gallagher, executive vice president and CFO. "These actions are expected to enable a more streamlined operating structure that lays the foundation for Anadigics' long-term improvement."
GAAP net loss for the first quarter of 2015 was $5.0 million, or ($0.06) per diluted share, a sequential improvement of 7.6 percent. Non-GAAP net loss for the first quarter of 2015 was $3.8 million, or ($0.04) per share, representing a sequential improvement of 19.1 percent.
As of April 4, 2015, cash and cash equivalents totaled $17.0 million, or net cash of $13.0 million, after excluding $4.0 million drawn under the company's credit facility.
Outlook
Anadigics anticipates a sequential revenue decline of 10-15 percent driven principally by a decline in mobile of approximately 20-25 percent in accordance with our shift to Infrastructure. Infrastructure revenues are expected to decline sequentially by 7-9 percent following higher-than-expected growth in Q1 2015.
Non-GAAP gross margin is expected to decline sequentially by 100-300 basis points on the lower expected revenue. Operating expenses are expected to be 5-7 percent lower, sequentially.
