ANADIGICS ANNOUNCES FIRST QUARTER 2009 RESULTS
Quarterly Net Sales of $30.5 Million; Non-GAAP Net Loss was ($0.21)
WARREN, N.J., April 28, 2009—ANADIGICS, Inc. (Nasdaq: ANAD), a leading provider of semiconductor solutions in the broadband wireless and wireline communications markets, reported first quarter 2009 net sales of $30.5 million, a decrease of 33% sequentially and 59% from the first quarter of 2008. As of April 4, 2009, cash, cash equivalents and short and long-term marketable securities totaled $132.5 million.
GAAP net loss for the first quarter of 2009 was $22.0 million, or ($0.36) per share. Non-GAAP net loss for the first quarter of 2009 was $12.8 million, or ($0.21) per share. Non-GAAP financial measures exclude charges of $9.2 million, or ($0.15) per share, associated with stock-based compensation, inventory, impairment of auction rate securities and a reduction in workforce. The details of the Non-GAAP adjustments are available in the accompanied financial schedules.
“Our results reflect typical wireless seasonality and the effects of the economic downturn on our cable and WiFi customers,” commented Mario Rivas, President and Chief Executive Officer. “While I am not satisfied with our financial guidance for the second quarter, which continues to reflect the impact of the economic downturn on our customers, we are confident that we have the leading technologies to service our end markets and are focused on execution, both strategically and operationally. I am encouraged by our high level of design win activity and, as a result, expect a return to revenue growth in the second half of 2009.”
Outlook for the Second Quarter 2009
Net sales for the second quarter of 2009 are expected to decline approximately 8% to 10% from the first quarter of 2009. Net loss per share on a GAAP basis for the second quarter is expected to be approximately ($0.29). Non-GAAP loss per share, excluding non-cash stock compensation expense, is expected to be approximately ($0.24). The net loss and non-GAAP loss per share are based on an estimated diluted weighted average outstanding common share count of 62 million.
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 auction rate securities and non-comparative charges in the first quarter of 2009 resulting from 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.
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 94201908 (available until May 4, 2009).
Recent Highlights
March 23 - - ANADIGICS Introduces Line of Hybrid RF Line Amplifiers for CATV
April 23 - - ANADIGICS Powers Leading Global Broadband Embedded Device
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About ANADIGICS, Inc.
ANADIGICS, Inc. (Nasdaq: ANAD - News) is a leading provider of semiconductor solutions in the 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, 2008, and those discussed elsewhere herein.
| ANADIGICS, INC. | | | | | | |
| Consolidated Statements of Operations | | | | | | |
| (Amounts in thousands, except per share amounts) | | | | | | |
| | | | | | | |
| | | Three months ended | |
| | | April 4, 2009 | | | March 29, 2008 | |
| | | (Unaudited) | | | (Unaudited) | |
| | | | | | | |
| Net sales | | $ | 30,495 | | | $ | 74,369 | |
| Cost of sales | | | 29,245 | | | | 47,764 | |
| Gross profit | | | 1,250 | | | | 26,605 | |
| Research and development expenses | | | 11,625 | | | | 14,331 | |
| Selling and administrative expenses | | | 7,432 | | | | 8,880 | |
| Restructuring charge | | | 2,598 | | | | - | |
| Operating (loss) income | | | (20,405 | ) | | | 3,394 | |
| Interest income | | | 559 | | | | 1,938 | |
| Interest expense | | | (591 | ) | | | (591 | ) |
| Other expense, net | | | (1,545 | ) | | | (812 | ) |
| Net (loss) income | | $ | (21,982 | ) | | $ | 3,929 | |
| | | | | | | | | |
| Net (loss) earnings per share | | | | | | | | |
| Basic | | $ | (0.36 | ) | | $ | 0.07 | |
| Diluted | | $ | (0.36 | ) | | $ | 0.07 | |
| | | | | | | | | |
| Basic shares outstanding | | | 61,742 | | | | 59,310 | |
| Basic & dilutive shares outstanding | | | 61,742 | | | | 60,430 | |
| | | | | | | | | |
| Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures | | | | | |
| | | | | | | | | |
| GAAP net (loss) income | | $ | (21,982 | ) | | $ | 3,929 | |
| Stock compensation expense in continuing operations | | | | | | | | |
| Cost of sales | | | 725 | | | | 726 | |
| Research and development | | | 1,431 | | | | 1,896 | |
| Selling and administrative | | | 1,445 | | | | 1,784 | |
| Cost of sales adjustment (1) | | | 1,410 | | | | - | |
| Auction rate securities impairment | | | 1,565 | | | | 823 | |
| Restructuring charge | | | 2,598 | | | | - | |
| Non-GAAP net (loss) income | | $ | (12,808 | ) | | $ | 9,158 | |
| | | | | | | | | |
| Non-GAAP earnings (loss) per share * | | | | | | | | |
| Basic | | $ | (0.21 | ) | | $ | 0.15 | |
| Diluted | | $ | (0.21 | ) | | $ | 0.15 | |
| | | | | | | | | |
| (*) Calculated using related GAAP shares outstanding | | | | | | | | |
| | | | | | | | | |
| (1) Three months ended April 4, 2009 includes $1,410 inventory reserves charge for products with reduced demand. | |
| | | | | | | | | |
| ANADIGICS, INC. | | | | | | |
| Condensed Consolidated Balance Sheets | | | | | | |
| (Amounts in thousands) | | | | | | |
| | | | | | | |
| | | April 4, 2009 | | | December 31, 2008 | |
| Assets | | Unaudited | | | | |
| | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 99,697 | | | $ | 123,552 | |
| Marketable securities | | | 25,502 | | | | 13,340 | |
| Accounts receivable | | | 13,935 | | | | 25,384 | |
| Inventory | | | 28,660 | | | | 33,578 | |
| Prepaid expenses and other current assets | | | 4,118 | | | | 3,121 | |
| Total current assets | | | 171,912 | | | | 198,975 | |
| | | | | | | | | |
| Marketable securities | | | 7,267 | | | | 8,832 | |
| Plant and equipment, net | | | 93,648 | | | | 95,671 | |
| Other assets | | | 290 | | | | 299 | |
| | | $ | 273,117 | | | $ | 303,777 | |
| | | | | | | | | |
| Liabilities and stockholders’ equity | | | | | | | | |
| | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Accounts payable | | $ | 10,913 | | | $ | 18,267 | |
| Accrued liabilities | | | 7,385 | | | | 13,203 | |
| Accrued restructuring costs | | | 2,392 | | | | 1,165 | |
| Convertible notes | | | 38,000 | | | | 38,000 | |
| Total current liabilities | | | 58,690 | | | | 70,635 | |
| | | | | | | | | |
| Other long-term liabilities | | | 3,107 | | | | 3,134 | |
| | | | | | | | | |
| Stockholders’ equity | | | 211,320 | | | | 230,008 | |
| | | $ | 273,117 | | | $ | 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. | | | | | |
| | | | | | | | | |
