Item 2.02 Results of Operations and Financial Condition
On July 24, 2007, ANADIGICS, Inc. (“ANADIGICS”) is issuing a press release and holding a conference call announcing its financial results for the quarter ended June 30, 2007. A copy of the press release is furnished as Exhibit 99.1 to this Form 8-K. The information in this Form 8-K and the Exhibit attached hereto is furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Use of Non-GAAP Financial Measures
The attached press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP, or pro forma, net income or loss and non-GAAP, or pro forma, income or loss per share. Management uses non-GAAP net income or loss and non-GAAP loss per share to evaluate the company's operating and financial performance in light of business objectives and for planning purposes. 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 equity-based compensation. These financial measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for net loss or loss per share prepared in accordance with GAAP.
Pursuant to the requirements of Regulation G, ANADIGICS has included a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits.
99.1 Press Release issued by ANADIGICS, Inc., dated July 24, 2007.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ANADIGICS, INC.
Date: July 24, 2007
By: /s/ Thomas C. Shields
Name: Thomas C. Shields
Title: Executive Vice President and Chief Financial Officer
EXHIBIT INDEX
| Exhibit No. | | Description |
| | | |
| 99.1 | | Press Release issued by ANADIGICS, Inc., dated July 24, 2007 |
ANADIGICS ANNOUNCES SECOND QUARTER 2007 RESULTS
Achieves Record Quarterly Net Sales of $53.9 million; up 8.7% sequentially and 37% From Year Ago Quarter
Delivers GAAP EPS of $0.03; Pro Forma Diluted EPS of $0.10
Expects Sequential Third Quarter Net Sales Growth of 10%; GAAP Diluted EPS of $0.06 and Pro Forma Diluted EPS of $0.12
WARREN, N.J., July 24, 2007—ANADIGICS, Inc. (Nasdaq: ANAD), a leading provider of semiconductor solutions in the rapidly growing broadband wireless and wireline communications markets, reported record quarterly second quarter 2007 net sales of $53.9 million, an increase of 8.7% compared with net sales of $49.6 million in the prior quarter, and an increase of 37% compared to net sales of $39.3 million in the year ago quarter.
Net income was $1.9 million, or $0.03 per share, compared with net loss of $1.2 million, or $0.02 per share in the prior quarter and net loss of $2.8 million, or $0.06 per share in the year ago quarter. Pro forma income for the second quarter 2007, which excludes non-cash stock compensation expense, increased $2.0 million sequentially to $5.7 million or $0.10 per diluted share.
"We achieved significant milestones in the second quarter with record revenue, led by our 3G portfolio with revenue growth of 38% sequentially and 83% year-over-year, and GAAP net income,” said Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. “ANADIGICS is well positioned strategically in the three-mega trend growth markets of 3G, WLAN and CATV to capitalize on our strong market position to fuel our revenue growth and financial performance.”
As of June 30, 2007 cash and short and long-term marketable securities totaled $181.1 million compared with $179.2 million at March 31, 2007.
“Our resolve to accelerate our financial performance through a strategically aligned product portfolio and a balanced operating base is a testament of our commitment to building shareholder value,” said Tom Shields, Executive Vice President and Chief Financial Officer. “Our financial leverage continues to improve, which is expected to further strengthen our financial results over the foreseeable future.”
Outlook for the Third Quarter 2007
Net sales for the third quarter 2007 are expected to increase sequentially by approximately 10%. Net sales at this level would represent a 35% increase on a comparable basis with third quarter 2006. Net income per share on a GAAP basis for the third quarter 2007 is expected to approximate $0.06. Pro forma diluted earnings per share, excluding non-cash stock compensation expense, are expected to increase sequentially to approximately $0.12. The net income and pro forma diluted earnings per share is based upon an estimated diluted weighted average outstanding common share count of 61.0 million.
The statements regarding outlook are forward looking and actual results may differ materially. Please see safe harbor statement at the end of the press release.
This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP, or pro forma, net income or loss and non-GAAP, or pro forma, 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 and for planning purposes. 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 equity-based compensation and discontinued operations. These financial measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for net loss or loss per share prepared in accordance with GAAP. Reconciliations of reported net loss and reported loss per share to non-GAAP net income or loss and non-GAAP income or loss per share, respectively, are included at the end of 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. 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) 839-2417 (available until July 31).
Recent Highlights
July 09, 2007 - ANADIGICS and Kunshan New and Hi-Tech Industrial Development Zone Break Ground for GaAs Wafer Fabrication Facility in China
June 27, 2007 - ANADIGICS’ 3G Penta-band Power Amplifier Slides Into Samsung’s Sleek Smartphone Ultra-Thin, Stylish Slider Handset SGH-I520
June 13, 2007 - Beceem Selects ANADIGICS Amplifiers for Mobile WiMAX ANADIGICS PAs Power Beceem’s BCS200 Wave 2 Reference Designs
June 13, 2007 - ANADIGICS’ New ZeroIC™ CDMA Power Amplifiers Compatible with QUALCOMM CDMA2000™ and 1xEVDO™ Reference Designs
June 12, 2007 - ANADIGICS Ships WCDMA PAs for Huawei’s Music Optimized 3G Handset ANADIGICS’ AWT6279 PA Selected for Stylish, Feature-Rich U120 Mobile Phone
June 05, 2007 - ANADIGICS Powers Emerging Markets CDMA450 3G Cell Phones with Small and Efficient Linear PA
May 22, 2007 - ANADIGICS Lights Up Samsung’s Thin Neon 3G Handset
May 21, 2007 - ANADIGICS Introduces New Integrated 1GHz RF Amplifier to Enhance Tuner Performance in Cable Boxes and TVs
May 21, 2007 - ANADIGICS Announces the Appointment of David Fellows to the Company’s Board of Directors
May 16, 2007 - ANADIGICS’ Power Amplifier Enables Samsung’s Ultra-Slim 3G EVDO Handset
May 15, 2007 - ANADIGICS’ PA Equips Samsung’s Ultra MPEG4 Video 3G Phone
May 14, 2007 - New ANADIGICS Linear EDGE Power Amp Module Supports Longer Broadband Data Transmit Times in 2.75G and 3G Phones, PDAs, and Wireless PC Cards
May 10, 2007 - ANADIGICS Introduces First Complete RF Front-End Chip Set for DOCSIS® 3.0 Cable Modems
May 09, 2007 - ANADIGICS Supplies 3G Power Amplifiers for LG Electronics’ VX9400 TV Capable Phone
May 07, 2007 - ANADIGICS Powers LG Electronics Stylish Shine 3G Mobile Phone
# # #
About ANADIGICS, Inc.
ANADIGICS, Inc. (Nasdaq: ANAD - News) is a leading provider of semiconductor solutions in the rapidly growing broadband wireless and wireline communications markets. The Company's products include power amplifiers, tuner integrated circuits, active splitters, line amplifiers, and other components, which can be sold individually or packaged as integrated radio frequency and front end modules.
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, 2006, and those discussed elsewhere herein.
ANADIGICS, INC. | | | | | | | | | |
Consolidated Statements of Operations | | | | | | | | | |
(Amounts in thousands, except per share amounts, unaudited) | | | | | | | | | |
| | | | | | | | | | | | | | |
| | | | Three months ended | | | Six months ended | |
| | | | June 30, 2007 | | | July 1, 2006 | | | June 30, 2007 | | | July 1, 2006 | |
| | | | | | | | | | | | | | |
| Net sales | | $ | 53,869 | | $ | 39,348 | | $ | 103,442 | | $ | 74,043 | |
| Cost of sales | | | 34,963 | | | 28,237 | | | 68,250 | | | 53,526 | |
| Gross profit | | | 18,906 | | | 11,111 | | | 35,192 | | | 20,517 | |
| Research and development expenses | | | 11,080 | | | 8,358 | | | 20,818 | | | 16,364 | |
| Selling and administrative expenses | | | 7,482 | | | 5,678 | | | 14,841 | | | 10,942 | |
| Operating income (loss) | | | 344 | | | (2,925 | ) | | (467 | ) | | (6,789 | ) |
| Interest income | | | 2,198 | | | 1,567 | | | 3,438 | | | 2,430 | |
| Interest expense | | | (655 | ) | | (1,287 | ) | | (1,280 | ) | | (2,575 | ) |
| Other income | | | - | | | 21 | | | - | | | 21 | |
| Income (loss) from continuing operations | | | 1,887 | | | (2,624 | ) | | 1,691 | | | (6,913 | ) |
| Loss from discontinued operations (1) | | | - | | | (163 | ) | | (965 | ) | | (511 | ) |
| Net income (loss) | | $ | 1,887 | | $ | (2,787 | ) | $ | 726 | | $ | (7,424 | ) |
| | | | | | | | | | | | | | |
| Basic earnings (loss) per share | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | $ | 0.03 | | $ | (0.06 | ) | $ | 0.03 | | $ | (0.17 | ) |
| Loss from discontinued operations (1) | | $ | - | | $ | - | | $ | (0.02 | ) | $ | (0.01 | ) |
| Net income (loss) | | $ | 0.03 | | $ | (0.06 | ) | $ | 0.01 | | $ | (0.18 | ) |
| | | | | | | | | | | | | | |
| Diluted earnings (loss) per share | | | | | | | | | | | | | |
| Income (loss) from continuing operations | | $ | 0.03 | | $ | (0.06 | ) | $ | 0.03 | | $ | (0.17 | ) |
| Loss from discontinued operations (1) | | $ | - | | $ | - | | $ | (0.02 | ) | $ | (0.01 | ) |
| Net income (loss) | | $ | 0.03 | | $ | (0.06 | ) | $ | 0.01 | | $ | (0.18 | ) |
| | | | | | | | | | | | | | |
| Basic shares outstanding | | | 56,523 | | | 47,198 | | | 52,419 | | | 42,184 | |
| Diluted shares outstanding | | | 59,604 | | | 47,198 | | | 55,774 | | | 42,184 | |
| | | | | | | | | | | | | | |
Unaudited Reconciliation of GAAP to Pro Forma Non-GAAP Financial Measures | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| GAAP net income (loss) | | $ | 1,887 | | $ | (2,787 | ) | $ | 726 | | $ | (7,424 | ) |
| Stock compensation expense in continuing operations | | | | | | | | | | | | | |
| Cost of sales | | | 851 | | | 375 | | | 1,751 | | | 674 | |
| Research and development | | | 1,392 | | | 697 | | | 2,892 | | | 1,265 | |
| Selling, general and administrative | | | 1,597 | | | 660 | | | 3,073 | | | 1,205 | |
| Loss from discontinued operations | | | - | | | 163 | | | 965 | | | 511 | |
| Pro forma net income (loss) | | $ | 5,727 | | $ | (892 | ) | $ | 9,407 | | $ | (3,769 | ) |
| | | | | | | | | | | | | | |
| Pro forma earnings (loss) per share * | | | | | | | | | | | | | |
| Basic | | $ | 0.10 | | $ | (0.02 | ) | $ | 0.18 | | $ | (0.09 | ) |
| Diluted | | $ | 0.10 | | $ | (0.02 | ) | $ | 0.17 | | $ | (0.09 | ) |
| | | | | | | | | | | | | | |
| (*) Calculated using related GAAP shares outstanding. | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| (1) The loss from discontinued operations reflects the divestiture of Telcom Devices, Inc., effective April 2, 2007. | | | | | | | | | | | | | |
ANADIGICS, INC. | | | | | |
Condensed Consolidated Balance Sheets | | | | | |
(Amounts in thousands) | | | | | |
| | | | | | | | |
| | June 30, 2007 | | | December 31, 2006 | |
Assets | | | (Unaudited) | | | | |
| | | | | | | | |
| Current assets: | | | | | | | |
| Cash and cash equivalents | | $ | 43,575 | | $ | 13,706 | |
| Marketable securities | | | 128,755 | | | 60,892 | |
| Accounts receivable | | | 33,561 | | | 26,707 | |
| Inventory | | | 18,967 | | | 19,701 | |
| Prepaid expenses and other current assets | | | 5,683 | | | 2,632 | |
| Assets of discontinued operations (1) | | | 21 | | | 1,429 | |
| Total current assets | | | 230,562 | | | 125,067 | |
| | | | | | | | |
| Marketable securities | | | 8,811 | | | 8,884 | |
| Plant and equipment, net | | | 53,801 | | | 41,259 | |
| Goodwill and other intangibles, net of amortization | | | 5,918 | | | 5,929 | |
| Other assets | | | 1,231 | | | 1,463 | |
| | | $ | 300,323 | | $ | 182,602 | |
| | | | | | | | |
Liabilities and stockholders’ equity | | | | | | | |
| | | | | | | | |
| Current liabilities: | | | | | | | |
| Accounts payable | | $ | 22,794 | | $ | 17,879 | |
| Accrued liabilities | | | 6,526 | | | 5,588 | |
| Capital lease obligations | | | - | | | 312 | |
| Liabilities of discontinued operations (1) | | | 152 | | | 252 | |
| Total current liabilities | | | 29,472 | | | 24,031 | |
| | | | | | | | |
| Other long-term liabilities | | | 3,298 | | | 3,348 | |
| Long-term debt | | | 38,000 | | | 38,000 | |
| Long-term capital lease obligations | | | - | | | 1,463 | |
| | | | | | | | |
| Stockholders’ equity | | | 229,553 | | | 115,760 | |
| | | $ | 300,323 | | $ | 182,602 | |
| | | | | | | | |
| (1) The Company disposed of the assets of its subsidiary, Telcom Devices, Inc. on April 2, 2007. | | | | | | | |
| | | | | | | | |
| The condensed balance sheet at December 31, 2006 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. | | | | | | | |
