Disappointing Q2 for Anadigics
RF company Anadigics has reported second quarter 2015 net sales of $15.8 million, a sequential decrease of 14.4 percent, driven principally by the decline in non-strategic cellular mobile business.
GAAP net loss for the second quarter of 2015 was $6.2 million, or ($0.07) per diluted share. Non-GAAP net loss for the second quarter of 2015 was $4.5 million, or ($0.05) per share.
As of July 4, 2015, cash and cash equivalents totaled $15.2 million, or net cash of $11.2 million, after excluding $4.0 million drawn under the company's credit facility.
"Despite market softness in small cell and some temporary excess customer inventory to work through in WiFi, we experienced only a modest sequential decline in total infrastructure revenue in Q2," said Ron Michels, chairman & CEO.
"While we continue to make progress in our core infrastructure businesses by launching new products, earning new design sockets, and gaining new customers, we expect the widely reported market softness in CATV and small cell to persist through the end of 2015. We believe the softness in both markets will subside in 2016 as deployments pick up steam. Most importantly, we are prepared with broad design-win penetration to meet the demand when strong market growth does, in fact, return."
"To address the impact any core market softness may have on the company's financials, we are exploring capitalisation options that may provide adequate cash infusion over the next twelve months," said Terry Gallagher, executive vice president and CFO.
He added: "We further believe that if such a cash infusion is secured, the company financials will be adequately strengthened to a level that mitigates any going concern risks that may arise as a result of continued infrastructure market softness. With a sound long-term growth plan and solid company execution, we expect any new capital infusion should contribute to the long-term value creation for our shareholders. While we are optimistic, we cannot guarantee at this time that we will be able to secure additional financing on satisfactory terms or at all."
Outlook
In Q3 Anadigics anticipates total revenue in the range of $12.0 million to $12.6 million, representing a sequential revenue decline of 20-24 percent and reflecting a continued decline in non-strategic legacy mobile, the impact of a broader slowdown in CATV spending, a reduction in legacy WiMAX and IoT businesses, and a slow return to Small Cell revenue growth due to continued delays at major carriers in Asia.
Non-GAAP gross margin is expected to decline sequentially by 500-800 basis points on the lower expected revenue.
Operating expenses are expected to be marginally lower, sequentially.
