ANADIGICS ANNOUNCES THIRD QUARTER 2007 RESULTS
Achieves Record Quarterly Net Sales of $59.5 million; up 10.5% sequentially and 35.5% From Year Ago Quarter
Delivers GAAP EPS of $0.04; Pro Forma Diluted EPS of $0.11
Company Accelerates Capacity Ramp to Meet Unprecedented Customer Demand
WARREN, N.J., October 23, 2007—ANADIGICS, Inc. (Nasdaq: ANAD), a leading provider of semiconductor solutions in the rapidly growing broadband wireless and wireline communications markets, reported record quarterly third quarter 2007 net sales of $59.5 million, an increase of 10.5% compared with net sales of $53.9 million in the prior quarter, and an increase of 35.5% compared to net sales of $43.9 million in the year ago quarter.
Net income was $2.4 million or $0.04 per share, compared with net income of $1.9 million, or $0.03 per share in the prior quarter and net loss of $1.3 million, or $0.03 per share in the year ago quarter. Pro forma income for the third quarter 2007, which excludes non-cash stock compensation expense and certain costs associated with the RF Group purchased from Fairchild Semiconductor on September 5, 2007, was $6.5 million or $0.11 per diluted share compared with $5.7 million or $0.10 per diluted share in the prior quarter and $1.1 million or $0.02 per diluted share in the year ago quarter. The one penny shortfall in our pro forma income from our prior guidance for the third quarter stems primarily from manufacturing inefficiencies associated with the rapid build up of production capacity to accommodate the unprecedented demand resulting from our increased market share with several top tier customers.
For the nine months ended September 29, 2007, net sales were $163.0 million, an increase of 38.1% compared with net sales of $118.0 million in the prior year ended September 30, 2006. Net income was $3.1 million or $0.05 per diluted share, compared with a net loss of $8.7 million or $0.20 per share. Pro forma income for the nine months 2007, which excludes non-cash stock compensation expense, discontinued operations and certain costs associated with the RF Group purchased from Fairchild Semiconductor on September 5, 2007, was $15.9 million or $0.28 per diluted share, compared with a pro forma loss of $2.7 million or $0.06 loss per share in the prior year.
“ANADIGICS has significantly increased its market share with several top tier customers resulting in an unprecedented demand for its 3G, Broadband CATV, and WiFi 802.11 “n” products.” said Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. “These dynamics have required acceleration in our plans to add production capacity, which have caused short term productivity issues, but are expected to be resolved going forward.”
As of June 30, 2007 cash and short and long-term marketable securities totaled $176.4 million compared with $181.1 million at March 31, 2007.
“We anticipate some continuing manufacturing inefficiencies associated with the production capacity ramp throughout the fourth quarter, said Tom Shields, Executive Vice President and Chief Financial Officer. “However, we remain confident in the Company’s ability to expand our financial leverage as we solve our manufacturing inefficiencies and achieve a more favorable product mix.”
Outlook for the Fourth Quarter 2007
Net sales for the fourth quarter 2007 are expected to increase sequentially by approximately 10% to 14% reflecting the continued strong demand for our products. Net sales at this level would represent a 35% to 40% increase on a comparable basis with fourth quarter 2006. Net income per share on a GAAP basis for the fourth quarter 2007 is expected to approximate $0.05 to $0.06. Pro forma diluted earnings per share, excluding non-cash stock compensation expense, are expected in the range of approximately $0.11 to $0.13, which reflects approximately $0.02 for the added quarterly operating expenses associated with the Company’s acquisition of the RF Group. The net income and pro forma diluted earnings per share are based upon an estimated diluted weighted average outstanding common share count of 62.0 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) 839-3115 (available until October 31).
Recent Highlights
October 08, 2007 - ANADIGICS President and Chief Executive Officer to Speak at Gilder/Forbes Telecosm Conference
September 18, 2007 - ANADIGICS Amplifier Powers New LG Chocolate™ Handset
September 12, 2007 - ANADIGICS Appoints John Coleman as Senior Vice President of Operations
September 11, 2007 - ANADIGICS Ships 802.11n Power Amplifiers to NXP Semiconductor for WLAN Module Solution
September 05, 2007 - ANADIGICS expands Research and Development Group through Acquisition of Fairchild Semiconductor's RF Design Team
August 29, 2007 - ANADIGICS Chief Executive Officer and Chief Financial Officer to Open NASDAQ
August 28, 2007 - New ANADIGICS ICs for Mobile Devices Integrate Wi-Fi and Bluetooth RF Front Ends on One Chip
July 31, 2007 - ANADIGICS Expands Wireless and Broadband U.S Based Sales Force
July 26, 2007 - ANADIGICS Amplifier Powers Samsung’s Ultra Edition II SGH-U700 3G Mobile Phone
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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.
