Achieves Record Quarterly Net Sales of $74.4 million; up 10% sequentially and 50% From Year Ago Quarter
Delivers Quarterly GAAP EPS of $0.07; Pro Forma Diluted EPS of $0.15
WARREN, N.J., April 22, 2008—ANADIGICS, Inc. (Nasdaq: ANAD), a leading provider of semiconductor solutions in the rapidly growing broadband wireless and wireline communications markets, reported record first quarter 2008 net sales of $74.4 million, an increase of 10% compared with net sales of $67.6 million in the prior quarter, and an increase of 50% compared to net sales of $49.6 million in the year ago quarter.
Net income was $3.9 million, or $0.07 per share, compared with $2.9 million, or $0.05 per share, in the prior quarter and net loss of $1.2 million, or $0.02 per share, in the year ago quarter. Pro forma income for the first quarter 2008, which excludes non-cash stock compensation expense, discontinued operations and an impairment charge of $0.8 million on the company’s investment in auction rate securities, was $9.2 million, or $0.15 per diluted share, compared with $7.8 million, or $0.13 per diluted share, in the prior quarter and $3.7 million, or $0.08 per diluted share, in the year ago quarter.
“ANADIGICS performance in the first quarter exemplifies our commitment to our business execution strategies,” said Dr. Bami Bastani, President and Chief Executive Officer. “We continue to implement our market share expansion plans and have created deeper relationships with our customers and suppliers while providing the best of breed RF products on the market today.”
As of March 29, 2008 cash and short and long-term marketable securities totaled $166.5 million compared with $176.8 million at December 31, 2007.
“We continue to focus on delivering improving financial performance as evidenced by our reported first quarter 2008 financial results,” said Tom Shields, Executive Vice President and Chief Financial Officer. “Our business outlook remains positive as characterized by our financial guidance for the second quarter of 2008.”
Outlook for the Second Quarter 2008
Net sales for the second quarter 2008 are estimated to be in the range of $77.0 million to $79.0 million. Net sales at this level would represent an approximate 43% to 47% increase on a comparable basis with second quarter 2007. Net income per share on a GAAP basis for the second quarter 2008 is expected to approximate $0.09 to $0.11. Pro forma diluted earnings per share, excluding non-cash stock compensation expense, are expected to be in the range of approximately $0.16 - $0.17. The net income and pro forma diluted earnings per share are based on an estimated diluted weighted average outstanding common share count of 69.0 million, which includes 7.6 million dilutive shares from the Convertible Notes due 2009.
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, 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, an impairment of auction rate securities and discontinued operations. Non-GAAP measures are used by some investors when assessing the 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.
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) 695-0974 (available until April 29).
Recent Highlights
April 1, 2008 - ANADIGICS Announces New Power Amplifier for AWS and KPCS CDMA/EVDO Mobile Equipment
February 26, 2008 - ANADIGICS Unveils ACA2604 RF Amplifier for FTTH Applications
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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, 2007, and those discussed elsewhere herein.
| ANADIGICS, INC. | | | | | | |
| Consolidated Statements of Operations | | | | | | |
| (Amounts in thousands, except per share amounts, unaudited) | | | | |
| | | | | | | |
| | | Three months ended | |
| | | March 29, 2008 | | | March 31, 2007 | |
| | | | | | | |
| | | | | | | |
| Net sales | | $ | 74,369 | | | $ | 49,573 | |
| Cost of sales | | | 47,764 | | | | 33,287 | |
| Gross profit | | | 26,605 | | | | 16,286 | |
| Research and development expenses | | | 14,331 | | | | 9,738 | |
| Selling and administrative expenses | | | 8,880 | | | | 7,359 | |
| Operating income (loss) | | | 3,394 | | | | (811 | ) |
| Interest income | | | 1,938 | | | | 1,240 | |
| Interest expense | | | (591 | ) | | | (625 | ) |
| Other expense | | | (812 | ) | | | - | |
| Income (loss) from continuing operations | | | 3,929 | | | | (196 | ) |
| Loss from discontinued operations (1) | | | - | | | | (965 | ) |
| Net income (loss) | | $ | 3,929 | | | $ | (1,161 | ) |
| | | | | | | | | |
| Basic earnings (loss) per share | | | | | | | | |
| Income (loss) from continuing operations | | $ | 0.07 | | | | (0.00 | ) |
| Loss from discontinued operations | | $ | - | | | $ | (0.02 | ) |
| Net income (loss) | | $ | 0.07 | | | $ | (0.02 | ) |
| | | | | | | | | |
| Diluted earnings (loss) per share | | | | | | | | |
| Income (loss) from continuing operations | | $ | 0.07 | | | | (0.00 | ) |
| Loss from discontinued operations (1) | | $ | - | | | $ | (0.02 | ) |
| Net income (loss) | | $ | 0.07 | | | $ | (0.02 | ) |
| | | | | | | | | |
| Basic shares outstanding | | | 59,310 | | | | 48,314 | |
| Basic & dilutive shares outstanding | | | 60,430 | | | | 48,314 | |
| | | | | | | | | |
| Unaudited Reconciliation of GAAP to Pro Forma Non-GAAP Financial Measures | | | | | |
| | | | | | | | | |
| GAAP net income (loss) | | $ | 3,929 | | | $ | (1,161 | ) |
| Stock compensation expense in continuing operations | | | | | | | | |
| Cost of sales | | | 726 | | | | 900 | |
| Research and development | | | 1,896 | | | | 1,500 | |
| Selling and administrative | | | 1,784 | | | | 1,476 | |
| Auction rate securities impairment | | | 823 | | | | - | |
| Loss from discontinued operations (1) | | | - | | | | 965 | |
| Pro forma net income | | $ | 9,158 | | | $ | 3,680 | |
| | | | | | | | | |
| Pro forma earnings per share * | | | | | | | | |
| Basic | | $ | 0.15 | | | $ | 0.08 | |
| Diluted | | $ | 0.15 | | | $ | 0.08 | |
| | | | | | | | | |
| (*) Calculated using related GAAP shares outstanding | | | | | | | | |
| | | | | | | | | |
| (1) The loss from discontinued operations reflected the divestiture of Telcom Devices, Inc., | |
| comprising $490 from the loss on sale and $475 loss on operations in the first quarter 2007. | |
| ANADIGICS, INC. | | | | | | |
| Condensed Consolidated Balance Sheets | | | | | | |
| (Amounts in thousands) | | | | | | |
| | | | | | | |
| | | March 29, 2008 | | | December 31, 2007 | |
| Assets | | (Unaudited) | | | | |
| | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 101,028 | | | $ | 57,786 | |
| Marketable securities | | | 40,991 | | | | 103,778 | |
| Accounts receivable | | | 43,037 | | | | 45,664 | |
| Inventory | | | 25,495 | | | | 23,989 | |
| Prepaid expenses and other current assets | | | 6,157 | | | | 3,277 | |
| Total current assets | | | 216,708 | | | | 234,494 | |
| | | | | | | | | |
| Marketable securities | | | 24,507 | | | | 15,248 | |
| Plant and equipment, net | | | 89,203 | | | | 76,129 | |
| Goodwill and other intangibles, net of amortization | | | 6,459 | | | | 6,524 | |
| Other assets | | | 958 | | | | 1,066 | |
| | | $ | 337,835 | | | $ | 333,461 | |
| | | | | | | | | |
| Liabilities and stockholders’ equity | | | | | | | | |
| | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 28,870 | | | $ | 34,184 | |
| Accrued liabilities | | | 9,091 | | | | 7,928 | |
| Total current liabilities | | | 37,961 | | | | 42,112 | |
| | | | | | | | | |
| Other long-term liabilities | | | 3,216 | | | | 3,243 | |
| Long-term debt | | | 38,000 | | | | 38,000 | |
| | | | | | | | | |
| Stockholders’ equity | | | 258,658 | | | | 250,106 | |
| | | $ | 337,835 | | | $ | 333,461 | |
| | | | | | | | | |
| * The condensed balance sheet at December 31, 2007 has been derived from the audited | | | | | |
| financial statements at such date but does not include all the information and footnotes | | | | | |
| required by generally accepted accounting principles for complete financial statements. | | | | | |
