Science & Technology
Science and Technology
Science and Technology
Wed, October 28, 2009
Tue, October 27, 2009 
WARREN, NJ--(Marketwire - October 27, 2009) - ANADIGICS, Inc. (
GAAP net loss for the third quarter of 2009 was $12.9 million, or ($0.21) per share. Non-GAAP net loss for the third quarter of 2009 was $6.4 million, or ($0.10) per share. Non-GAAP financial measures exclude charges of $3.9 million or ($0.06) per share associated with a settlement on October 26, 2009 of a commercial dispute with a customer, $2.9 million, or ($0.05) per share associated with stock-based compensation and a tax refund of $0.3 million. The details of the Non-GAAP adjustments are available in the accompanied financial schedules.
"Our positive third quarter results are evidence of the successful execution on our stated business initiatives, resulting in revenue and non-GAAP loss per share exceeding our guidance. Our revenue during the quarter benefited from continued growth in our 3G wireless products as well as an earlier than expected recovery in both our cable TV and WLAN revenue," remarked Mario Rivas, President and Chief Executive Officer of ANADIGICS. "Our commitment to operational excellence has enabled us to maintain high performance metrics at our Fab in Warren, NJ. We recently announced our foundry agreement with WIN Semiconductors, which is a key element of our hybrid manufacturing strategy and is expected to provide expanded production capabilities by the fourth quarter 2010 to ensure fulfillment of future demand. Additionally, with an unprecedented number of new products in our development pipeline, I am confident that we are well positioned for growth in the coming year."
Outlook for the Fourth Quarter 2009
Net sales for the fourth quarter of 2009 are estimated to increase sequentially over the third quarter of 2009 by approximately 5% to 8%. Net loss per share on a GAAP basis for the fourth quarter is expected to be approximately ($0.16) to ($0.18). Non-GAAP loss per share, excluding non-cash stock compensation and management separation expense, is expected to be approximately ($0.08) to ($0.10).
The statements regarding the Company's anticipated future performance are forward looking and actual results may differ materially. Please see safe harbor statement at the end of this press release.
This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP net income or loss and non-GAAP income or loss per share. Management uses non-GAAP net income or loss and non-GAAP income or loss per share to evaluate the company's operating and financial performance in light of business objectives, for planning purposes, when publicly providing our business outlook and to facilitate period-to-period comparisons. ANADIGICS believes that these measures are useful to investors because they enhance investors' ability to review the company's business from the same perspective as the company's management and facilitate comparisons of this period's results with prior periods. These non-GAAP measures exclude charges related to stock-based compensation, restructuring charges, impairment of marketable securities, the refund of certain R&D tax credits and non-comparative charges in 2008 and 2009 resulting from the settlement of a commercial dispute with a customer, management separations, cancelations and impairments on equipment and inventory reserves associated with reduced demand. Non-GAAP measures are used by some investors when assessing the ongoing operating and financial performance of our Company. These financial measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Management acknowledges that stock-based compensation is a recurring cost and is an important part of our employee's compensation and impacts their performance. However the expense is non-cash in nature and there are various valuation methodologies and assumptions used in determining stock-based compensation that may be unrelated to operations, such as volatility and current interest rates. The presentation of the additional information should not be considered a substitute for net income or loss or income or loss per share prepared in accordance with GAAP. The primary material limitations associated with the use of non-GAAP measures as compared to the most directly comparable GAAP financial measures are (i) they may not be comparable to similarly titled measures used by other companies in ANADIGICS industry, and (ii) they exclude financial information that some may consider important in evaluating our performance.
Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP measures as compared to the most directly comparable GAAP financial measures are (i) they may not be comparable to similarly titled measures used by other companies in ANADIGICS industry, and (ii) they exclude financial information that some may consider important in evaluating our performance. We compensate for these limitations by providing reconciliations of reported net income or loss and income or loss per share to non-GAAP net income or net loss and non-GAAP income or loss per share, respectively, within this press release.
Conference Call
ANADIGICS' senior management will conduct a conference call today at 5:00 PM 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 dialing 800-642-1687 conference ID 34535466 (available until November 3, 2009).
Recent Highlights
October 26, 2009 - ANADIGICS New 4G Power Amplifier Delivers Superior Performance for Rapidly-Growing Mobile WiMAX Marketplace
October 7, 2009 - ANADIGICS Expands Global Presence with New Tokyo, Japan Sales Office
October 5, 2009 - ANADIGICS and WIN Semiconductors Announce Strategic Foundry Relationship
September 1, 2009 - ANADIGICS' New EDGE Power Amplifier Delivers 3G Performance with Superior Efficiency
August 25, 2009 - Intermec Leverages ANADIGICS' HELP3™ Power Amplifiers for WAN 3.75G Radio in new CN50 Rugged Mobile Computer
July 29, 2009 - ANADIGICS Launches Traditional and Simplified Chinese Websites
About ANADIGICS, Inc.
ANADIGICS, Inc. (
Safe Harbor Statement
Except for historical information contained herein, this press release contains projections and other forward-looking statements (as that term is defined in the Securities Exchange Act of 1934, as amended). These projections and forward-looking statements reflect the Company's current views with respect to future events and financial performance and can generally be identified as such because the context of the statement will include words such as "believe," "anticipate," "expect," or words of similar import. Similarly, statements that describe our future plans, objectives, estimates or goals are forward-looking statements. No assurances can be given, however, that these events will occur or that these projections will be achieved and actual results and developments could differ materially from those projected as a result of certain factors. Important factors that could cause actual results and developments to be materially different from those expressed or implied by such projections and forward-looking statements include those factors detailed from time to time in our reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2008, and those discussed elsewhere herein.
ANADIGICS, INC. Consolidated Statements of Operations (Amounts in thousands, except per share amounts, unaudited) Three months ended Nine months ended ------------------------ ------------------------ October 3, September 27, October 3, September 27, 2009 2008 2009 2008 ----------- ----------- ----------- ----------- Net sales $ 36,716 $ 58,065 $ 98,674 $ 212,927 Cost of sales 32,246 44,790 90,194 143,127 ----------- ----------- ----------- ----------- Gross profit 4,470 13,275 8,480 69,800 Research and development expenses 11,025 12,931 33,026 42,059 Selling and administrative expenses 6,315 14,576 20,085 32,897 Restructuring charge - - 2,598 - ----------- ----------- ----------- ----------- Operating loss (12,870) (14,232) (47,229) (5,156) Interest income 184 978 1,030 4,197 Interest expense (584) (592) (1,766) (1,774) Other income (expense) 89 (1,622) (1,456) (2,758) ----------- ----------- ----------- ----------- Loss before income taxes (13,181) (15,468) (49,421) (5,491) Benefit from income taxes (321) - (321) - ----------- ----------- ----------- ----------- Net loss $ (12,860) $ (15,468) $ (49,100) $ (5,491) =========== =========== =========== =========== Net loss per share ----------- ----------- ----------- ----------- Basic $ (0.21) $ (0.26) $ (0.79) $ (0.09) =========== =========== =========== =========== Diluted $ (0.21) $ (0.26) $ (0.79) $ (0.09) =========== =========== =========== =========== Basic shares outstanding 62,617 60,509 62,189 59,949 =========== =========== =========== =========== Basic & dilutive shares outstanding 62,617 60,509 62,189 59,949 =========== =========== =========== =========== Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures GAAP net loss $ (12,860) $ (15,468) $ (49,100) $ (5,491) Stock compensation expense Cost of sales 601 822 1,943 2,574 Research and development 1,167 1,470 3,715 5,271 Selling and administrative 1,144 1,567 3,832 5,361 Other non-GAAP adjustments Cost of sales (1) 3,879 4,216 5,289 4,216 Selling and administrative (2) - 5,729 - 5,729 Auction rate securities (recovery) impairment (35) 1,627 1,530 3,064 Restructuring charge - - 2,598 - Benefit from income taxes (321) - (321) - ----------- ----------- ----------- ----------- Non-GAAP net (loss) income $ (6,425) $ (37) $ (30,514) $ 20,724 =========== =========== =========== =========== Non-GAAP (loss) earnings per share * Basic $ (0.10) $ - $ (0.49) $ 0.35 =========== =========== =========== =========== Diluted $ (0.10) $ - $ (0.49) $ 0.35 =========== =========== =========== =========== (*) Calculated using related GAAP shares outstanding (1) Three and nine months ended October 3, 2009 include $3,879 for the October 26, 2009 settlement of a commercial dispute with a customer. The nine months ended October 3, 2009 also includes $1,410 inventory reserves charge for products with reduced demand recorded in first quarter of 2009. Three and nine months ended September 27, 2008 included manufacturing equipment purchase cancellation charges of $1,860 (primarily cash), a non-cash write down of certain manufacturing assets held for sale of $849, inventory reserves for products with lower demand of $1,210 and separation and related costs. (2) Three and nine months ended September 27, 2008 included separation and transition costs of $5,729 related to CEO resignation ($3,539 cash; $2,190 non-cash). ANADIGICS, INC. Condensed Consolidated Balance Sheets (Amounts in thousands) October 3, December 31, 2009 2008 ------------- ------------- Assets Unaudited Current assets: Cash and cash equivalents $ 115,025 $ 123,552 Marketable securities - 13,340 Accounts receivable 23,224 25,384 Inventory 21,465 33,578 Prepaid expenses and other current assets 3,892 3,121 ------------- ------------- Total current assets 163,606 198,975 Marketable securities 8,410 8,832 Plant and equipment, net 86,041 95,671 Other assets 282 299 ------------- ------------- $ 258,339 $ 303,777 ============= ============= Liabilities and stockholders' equity Current liabilities: Accounts payable $ 12,758 $ 18,267 Accrued liabilities 11,105 13,203 Accrued restructuring costs 184 1,165 Convertible notes 38,000 38,000 ------------- ------------- Total current liabilities 62,047 70,635 Other long-term liabilities 4,368 3,134 Stockholders' equity 191,924 230,008 ------------- ------------- $ 258,339 $ 303,777 ============= ============= * The condensed balance sheet at December 31, 2008 has been derived from the audited financial statements at such date but does not include all the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements.
