Document And Entity Information
Document And Entity Information - Jul. 04, 2015 - shares | Total |
Entity Registrant Name | ANADIGICS INC |
Entity Central Index Key | 940,332 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Accelerated Filer |
Entity Current Reporting Status | Yes |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Entity Common Stock, Shares Outstanding (in shares) | 88,212,740 |
Document Type | 10-Q |
Document Period End Date | Jul. 4, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jul. 04, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 15,155 | $ 18,430 |
Accounts receivable, net | 5,763 | 5,335 |
Inventories | 9,731 | 13,844 |
Prepaid expenses and other current assets | $ 3,066 | 2,721 |
Assets held for sale | 335 | |
Total current assets | $ 33,715 | 40,665 |
Plant and equipment: | ||
Equipment and furniture | 190,960 | 190,718 |
Leasehold improvements | 46,887 | 46,850 |
Projects in process | 1,447 | 1,415 |
239,294 | 238,983 | |
Less accumulated depreciation and amortization | 225,811 | 221,812 |
13,483 | 17,171 | |
Other assets | 111 | 180 |
Total assets | 47,309 | 58,016 |
Current liabilities: | ||
Accounts payable | 4,927 | 5,913 |
Accrued liabilities | 3,355 | 3,419 |
Accrued restructuring costs | 410 | 904 |
Bank borrowings | 4,000 | 4,000 |
Total current liabilities | 12,692 | 14,236 |
Other long-term liabilities | 842 | 1,122 |
Total liabilities | $ 13,534 | $ 15,358 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.01 par value, 144,000 shares authorized, 88,327 issued at July 4, 2015 and 86,878 issued at December 31, 2014 | $ 883 | $ 869 |
Additional paid-in capital | 644,991 | 642,683 |
Accumulated deficit | (611,840) | (600,635) |
Treasury stock at cost: 115 shares | (259) | (259) |
Total stockholders’ equity | 33,775 | 42,658 |
Total liabilities and stockholders’ equity | $ 47,309 | $ 58,016 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares shares in Thousands | Jul. 04, 2015 | Dec. 31, 2014 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 144,000 | 144,000 |
Common stock, shares issued (in shares) | 88,327 | 86,878 |
Treasury stock at cost: shares (in shares) | 115 | 115 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Net sales | $ 15,796 | $ 23,261 | $ 34,242 | $ 46,532 |
Cost of sales | 12,823 | 22,616 | 27,261 | 43,616 |
Gross profit | 2,973 | 645 | 6,981 | 2,916 |
Research and development expenses | 5,063 | 7,262 | 10,274 | 15,838 |
Selling and administrative expenses | 3,520 | 4,536 | 7,323 | 9,662 |
Restructuring expense | 561 | 4,409 | 561 | 5,860 |
Operating loss | (6,171) | (15,562) | (11,177) | (28,444) |
Interest and other (expense) income, net | (9) | 528 | (28) | 1,660 |
Net loss | $ (6,180) | $ (15,034) | $ (11,205) | $ (26,784) |
Basic and diluted loss per share (in dollars per share) | $ (0.07) | $ (0.18) | $ (0.13) | $ (0.31) |
Weighted average common shares outstanding used in computing loss per share | ||||
Basic and diluted (in shares) | 88,035 | 85,687 | 87,571 | 85,225 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Net loss | $ (6,180) | $ (15,034) | $ (11,205) | $ (26,784) |
Other comprehensive loss | ||||
Unrealized gain on marketable securities | 118 | 81 | ||
Reclassification adjustment: | ||||
Effect of net recognized gain on marketable securities reclassified to Interest and other (expense) income, net | (568) | (1,728) | ||
Comprehensive loss | $ (6,180) | $ (15,484) | $ (11,205) | $ (28,431) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 04, 2015 | Jun. 28, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (11,205) | $ (26,784) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 4,200 | 6,308 |
Amortization | 19 | 34 |
Stock based compensation | $ 2,322 | 3,199 |
Gain on marketable securities | (1,728) | |
(Gain) loss on disposal of equipment and assets held for sale | $ (6) | 3,705 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (428) | 3,789 |
Inventories | 4,113 | 3,155 |
Prepaid expenses and other assets | (367) | (1,031) |
Accounts payable | (986) | (4,720) |
Accrued liabilities and other liabilities | (838) | 61 |
Net cash used in operating activities | (3,176) | (14,012) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of plant and equipment | (136) | (774) |
Proceeds from sale of equipment | $ 37 | 17 |
Proceeds from sale of marketable securities | 3,528 | |
Net cash (used in) provided by investing activities | $ (99) | 2,771 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuance of common stock | 10 | |
Proceeds from bank borrowings | $ 8,000 | 10,132 |
Repayments of bank borrowings | $ (8,000) | (3,132) |
Repayments of Restricted cash | (3,000) | |
Net cash provided by financing activities | 4,010 | |
Net decrease in cash and cash equivalents | $ (3,275) | (7,231) |
Cash and cash equivalents at beginning of period | 18,430 | 20,947 |
Cash and cash equivalents at end of period | $ 15,155 | $ 13,716 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 6 Months Ended |
Jul. 04, 2015 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block] | 1. Summary of Significant Accounting Policies Basis of Presentation ANADIGICS, Inc. (the Company) is a global leader in the design and manufacture of radio frequency semiconductor solutions for Infrastructure and Mobile applications. Infrastructure is comprised of products for the following applications: CATV, small cell, WiFi, M2M, optical and other general RF applications. Mobile is comprised of WiFi and Cellular products that primarily address the smartphone, handset and tablet markets. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six month period ended July 4, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The financial statements have been prepared assuming that the Company will continue as a going concern. The Company has historically operated at a loss and has not consistently generated sufficient cash flows from operations to cover its operating expenses. In mid-2014, the Company implemented a strategic restructuring plan (Note 2) that the Company believed would place increased emphasis on infrastructure markets, lower operating costs and position the business for improved operating results. By the three months ended April 4, 2015, the Company’s infrastructure revenue improved, costs were lowered and operating losses were reduced in keeping with the strategic restructuring plan. However, subsequent to that date, unexpected declines in revenues resulted in an increase in operating losses. Therefore, the delayed improvement in infrastructure revenue is forecast to result in operating losses into 2016, larger than those foreseen under the strategic restructuring plan. Additionally, in future periods it is possible that the Company will not maintain compliance with certain covenants under its revolving credit facility (Note 9) which could result in outstanding borrowings being immediately due and payable and the termination of the revolving credit facility. The combination of these factors raises substantial doubt about the Company’s ability to continue as a going concern in 2016. Management’s plans to overcome these difficulties include financing all or part of its operations through additional equity or debt financing. However, there can be no assurance that additional financing will be available on satisfactory terms or at all. The Company also expects to continue to aggressively pursue available sales opportunities, work with distributors and end users to grow future sales, and continue to control costs. The ability to continue as a going concern in 2016 is dependent upon increasing infrastructure revenue, continuing to control costs and obtaining the necessary financing to meet obligations and repay liabilities arising from normal business operations when they come due. The condensed consolidated balance sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company has evaluated subsequent events and determined that there were no subsequent events to recognize or disclose in these unaudited interim condensed consolidated financial statements. RECENTLY ADOPTED ACCOUNTING STANDARDS In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of an Entity IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers INCOME TAXES The Company maintains a full valuation allowance on its deferred tax assets. Accordingly, the Company has not recorded a benefit or provision for income taxes. The Company recognizes interest and penalties related to the underpayment of income taxes in income tax expense. No unrecognized tax benefits, interest or penalties were accrued at July 4, 2015. The Company’s U.S. federal net operating losses have occurred since 1998 and as such, tax years subject to potential tax examination could apply from that date because carrying-back net operating loss opens the relevant year to audit. WARRANTY Based on the examination of historical returns and other information it deems critical, the Company estimates that a current charge to income will need to be provided in order to cover future warranty obligations for products sold during the year. The accrued liability for warranty costs is included in Accrued liabilities in the condensed consolidated balance sheets. Changes in the Company’s product warranty reserve are as follows: Six months ended July 4, 2015 June 28, 2014 Beginning balance $ 237 $ 383 Additions charged to Cost of sales 19 133 Claims processed (120 ) (315 ) Ending balance $ 136 $ 201 |
Note 2 - Restructuring and Othe
Note 2 - Restructuring and Other Charges | 6 Months Ended |
Jul. 04, 2015 | |
Notes to Financial Statements | |
Restructuring and Related Activities Disclosure [Text Block] | 2. RESTRUCTURING AND OTHER CHARGES RESTRUCTURING In mid 2014, the Company implemented a strategic restructuring plan to better address growth opportunities in infrastructure markets and to lower operating costs. The strategy included expanding the Company’s presence in the infrastructure space and reducing fixed costs associated with certain legacy mobile activities through a resizing of staff and manufacturing capability. During the three and six months ended, June 28, 2014, the Company implemented workforce reductions that eliminated approximately 60 and 100 positions, respectively, throughout the Company, and recorded restructuring charges of $687 and $2,138, respectively, for severance, related benefits and other costs. By the end of 2014 and inclusive of the aforementioned charges, approximately 150 positions were eliminated throughout the Company and a $4,199 workforce reduction charge was recorded to Restructuring charges. In May 2015, as an extension of its strategic shift to Infrastructure and migration of its business model, the Company implemented a workforce reduction that eliminated approximately 25 positions throughout the Company and recorded approximately $611 of restructuring charges during the second quarter of 2015 covering severance, related benefits and other costs. The Company also recorded a $50 gain on the sale of an asset classified as held for sale, which was offset against restructuring charges in the second quarter of 2015. In addition, the remaining assets previously held for sale were re-classified to fixed assets during the quarter as it was determined that such assets would not be sold in the near future. There was no impact to the results of operations as a result of this re-classification for any period presented. Activity and liability balances related to the restructurings were as follows: Workforce-related Lease-related Total December 31, 2013 balance $ 245 - $ 245 Restructuring expense 4,002 197 4,199 Payments (3,502 ) (38 ) (3,540 ) December 31, 2014 balance $ 745 $ 159 $ 904 Restructuring expense 611 - 611 Payments (1,026 ) (79 ) (1,105 ) July 4, 2015 balance $ 330 $ 80 $ 410 During the second quarter of 2014, the Company reviewed and identified certain surplus manufacturing fixed assets and recorded a restructuring charge of $3,722 to write down certain assets to their current market value based on proceeds expected from their sale. OTHER CHARGES During the second quarter of 2014, the Company recorded a charge of $2,080 to Cost of sales for inventory write-downs on certain excess Mobile inventory. |
Note 3 - Fair Value and Marketa
Note 3 - Fair Value and Marketable Securities | 6 Months Ended |
Jul. 04, 2015 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 3. FAIR VALUE AND MARKETABLE SECURITIES The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the relatively short maturity of these items. During the first quarter of 2014, a former-auction corporate debt security held by the Company sold for $2,960, resulting in a realized gain of $1,160 which was recorded to Interest and other (expense) income, net. During the second quarter of 2014, a preferred equity auction rate security held by the Company sold for $568, with a realized gain of $568 recorded to Interest and other (expense) income, net. |
Note 4 - Inventories
Note 4 - Inventories | 6 Months Ended |
Jul. 04, 2015 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | 4. Inventories Inventories are stated at the lower of cost (first-in, first-out method) or market. Inventories consist of the following: July 4, 2015 December 31, 2014 Raw materials $ 3,783 $ 4,584 Work in process 2,830 3,052 Finished goods 3,118 6,208 Total $ 9,731 $ 13,844 |
Note 5 - Stockholders' Equity
Note 5 - Stockholders' Equity | 6 Months Ended |
Jul. 04, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 5. STOCKHOLDERS’ EQUITY NASDAQ LISTING The Company’s common stock currently trades on the NASDAQ Global Market (“NASDAQ”). On June 18, 2015, the Company received a letter from NASDAQ informing the Company that for the previous 30 consecutive business days, the bid price for the Company’s common stock had closed below $1.00, a requirement for listing on NASDAQ. The Company has until December 15, 2015 to regain compliance which would be satisfied if the Company’s common stock closes at $1.00 per share or more for a minimum of 10 consecutive business days. If the Company does not regain compliance by December 15, 2015, the Company may be eligible for an additional 180 calendar days compliance period. To qualify, the Company would be required to meet the continued listing requirement for market value of publicly held shares and all other initial NASDAQ listing standards, with the exception of the bid price requirement, and would need to provide written notice of its intention to cure the deficiency during the second compliance period. However, if it appears to the NASDAQ staff that the Company will not be able to cure the deficiency, or if the Company is otherwise not eligible, the staff would notify the Company that its securities would then be subject to delisting. In the event of such notification the Company may appeal the staff’s determination to delist its securities. |
Note 6 - Stock Based Compensati
Note 6 - Stock Based Compensation | 6 Months Ended |
Jul. 04, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 6. STOCK BASED COMPENSATION Equity Compensation Plans The Company has the following active equity compensation plans under which equity securities have been authorized for issuance to employees and/or directors: ● The 2015 Long-Term Incentive and Share Award Plan (2015 Plan) ● The 2005 Employee Stock Purchase Plan (2005 ESP Plan) The 2015 Plan provides for the granting of stock options, stock appreciation rights, restricted stock units and other share-based awards to eligible employees and directors, as defined in the respective plans. Option grants have terms of ten years and become exercisable in varying amounts over periods of up to three years. To date, no stock appreciation rights have been granted under the 2015 Plan. An aggregate of 10,000 shares of common stock were reserved for issuance under the 2015 Plan. In 2015, the Company approved the 2016 ESP Plan under Section 423 of the Internal Revenue Code. The 2016 ESP Plan will become effective on January 1, 2016, immediately after our existing 2005 ESP Plan expires on December 31, 2015. All full-time employees of ANADIGICS, Inc. and part-time employees, as defined in the 2016 ESP Plan, are eligible to participate in the plan. An aggregate of 5,000 shares of common stock were reserved for offering under the 2016 ESP Plan. Offerings are made at the commencement of each calendar year and must be purchased by the end of that calendar year. The following table summarizes information related to awards of restricted stock units and stock options as well as changes during the six months period ended July 4, 2015: Restricted Stock Units Stock Options Time-based Performance-based Time-based Units Weighted Average (WA) grant date fair value Units WA price/ unit Issuable upon exercise WA exercise price WA remaining contractual life (years) Outstanding at January 1, 201 5 2,790 $ 1.58 314 $ 1.87 1,219 $ 4.82 Granted 2,462 1.04 264 1.05 11 1.18 Shares vested/options exercised (1,440 ) 1.37 (10 ) 2.03 - - Forfeited/expired (141 ) 1.25 - - (131 ) 4.68 Outstanding at July 4, 2015 3,671 $ 1.31 568 $ 1.56 1,099 $ 4.80 3.2 Exercisable at July 4, 2015 N/A N/A N/A N/A 1,084 $ 4.85 3.2 In February 2015, the Company awarded 264 restricted stock units to its officers and other key employees which have market performance-based vesting conditions contingent upon the Company’s relative shareholder returns measured against defined peer group companies. The market performance-based awards will be evaluated annually in one-third increments measuring Company shareholder returns during the one, two and three year periods following the award. Company performance within the top 75th percentile tier in a measurement period would result in maximum performance attainment, while performance below the 25th-percentile results in no vesting for that period. These market performance-based restricted stock units, included in the table above, have an average fair value of $1.05 calculated using a Monte Carlo Simulation model on the date of grant. The table below summarizes stock based compensation by financial statement line item for the three and six month periods ended July 4, 2015 and June 28, 2014: Three months ended Six months ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Cost of sales $ 266 $ 246 $ 540 $ 522 Research and development expenses 472 522 925 1,076 Selling and administrative expenses 388 588 857 1,601 Total stock based compensation $ 1,126 $ 1,356 $ 2,322 $ 3,199 No tax benefits have been recorded due to the Company’s full valuation allowance position. As of July 4, 2015, there was $2,775 of unrecognized stock based compensation cost related to unvested restricted awards and unvested stock options. The weighted average remaining recognition periods for our restricted stock units and stock options are 1.4 and 2.4 years, respectively. Valuation Method for ESP Plan, Stock Option Awards and Performance Awards For ESP Plan and stock option awards, the fair value is estimated at the date of grant using a Black-Scholes option pricing model. The fair value of Company-based performance awards are fixed upon the date of grant. Market-based performance equity award fair values are calculated with the assistance of a valuation consultant using a Monte Carlo simulation method. The weighted average assumptions and fair values for stock-based compensation grants used for the six month periods ended July 4, 2015 and June 28, 2014 are summarized below: Six months ended July 4, 2015 June 28, 2014 Stock option awards: Risk-free interest rate 1.3 % 1.7 % Expected volatility 63 % 58 % Average expected term (in years) 5.0 5.0 Expected dividend yield 0.0 % 0.0 % Weighted average fair value of options granted $ 0.63 $ 0.97 ESP Plan: Risk-free interest rate 0.3 % 0.1 % Expected volatility 77 % 57 % Average expected term (in years) 1.0 1.0 Expected dividend yield 0.0 % 0.0 % Weighted average fair value of purchase option $ 0.31 $ 0.28 Performance awards: Average risk-free interest rate 0.6 % 0.3 % Expected volatility 66.5 % 54.6 % Average expected term (in years) 3.0 3.0 Expected dividend yield 0.0 % 0.0 % Weighted average fair value of performance awards $ 1.05 $ 1.84 For equity awards with an expected term of one year or less, the assumption for expected volatility is solely based on the Company’s historical volatility, whereas for equity awards with expected terms of greater than one year, the assumption is based on a combination of implied and historical volatility. Equity-based compensation recognized is reduced for estimated forfeitures and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. |
Note 7 - Loss Per Share
Note 7 - Loss Per Share | 6 Months Ended |
Jul. 04, 2015 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 7. Loss Per Share The reconciliation of shares used to calculate basic and diluted loss per share consists of the following: Three months ended Six months ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Weighted average common shares for basic loss per share 88,035 85,687 87,571 85,225 Effect of dilutive securities: Stock options (*) - - - - Unvested restricted stock units (*) - - - - Adjusted weighted average shares for diluted loss per share 88,035 85,687 87,571 85,225 * Incremental shares from restricted stock units and stock options are computed using the treasury stock method. For the three and six months ended July 4, 2015 and June 28, 2014, potential additional dilution arising from any of the Company's outstanding stock options or unvested restricted stock units is detailed below. Such potential dilution was excluded as their effect was anti-dilutive. Three months ended Six months ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Stock options 1,099 1,272 1,099 1,272 Unvested restricted stock units 4,239 3,780 4,239 3,780 |
Note 8 - Legal Proceedings
Note 8 - Legal Proceedings | 6 Months Ended |
Jul. 04, 2015 | |
Notes to Financial Statements | |
Legal Matters and Contingencies [Text Block] | 8. LEGAL PROCEEDINGS The Company is a party to ordinary course litigation arising out of the operation of its business. The Company accrues for a loss contingency when it determines that it is probable, after consultation with counsel, that a liability has been incurred and the amount of such loss can be reasonably estimated. The Company believes that the ultimate resolution of such ordinary course litigation, either individually or in the aggregate, will not have a material adverse effect on its consolidated financial condition, results of operations, or cash flows. |
Note 9 - Bank Borrowings Under
Note 9 - Bank Borrowings Under Credit Facility | 6 Months Ended |
Jul. 04, 2015 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 9. BANK BORROWINGS UNDER CREDIT FACILITY On October 24, 2014, the Company terminated a three-year $11,000 revolving credit facility with PNC Bank, N.A which had been scheduled to expire in 2016 and entered into a Loan and Security Agreement with Silicon Valley Bank (the “SVB Loan Agreement”). The SVB Loan Agreement provides the Company with a two-year revolving credit facility of $10,000 that expires on October 24, 2016 and was modified on June 2, 2015. The SVB Loan Agreement enables borrowings based upon 85% of eligible accounts receivable and is secured by certain insured accounts receivable and substantially all of the Company’s other assets. The SVB Loan Agreement requires compliance with certain covenants, including minimum EBITDA (as defined in the SVB Loan Agreement) and quick ratio levels, in addition to certain capital expenditure limits. The interest rate on the outstanding balance under the SVB Loan Agreement is Prime plus 0.5%. The SVB Loan Agreement contains a fee for any unused portion of the facility. As of July 4, 2015, the Company was in compliance with its covenants and $4,000 was outstanding under the SVB Loan Agreement. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jul. 04, 2015 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation ANADIGICS, Inc. (the Company) is a global leader in the design and manufacture of radio frequency semiconductor solutions for Infrastructure and Mobile applications. Infrastructure is comprised of products for the following applications: CATV, small cell, WiFi, M2M, optical and other general RF applications. Mobile is comprised of WiFi and Cellular products that primarily address the smartphone, handset and tablet markets. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation have been included. Operating results for the three and six month period ended July 4, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015. The financial statements have been prepared assuming that the Company will continue as a going concern. The Company has historically operated at a loss and has not consistently generated sufficient cash flows from operations to cover its operating expenses. In mid-2014, the Company implemented a strategic restructuring plan (Note 2) that the Company believed would place increased emphasis on infrastructure markets, lower operating costs and position the business for improved operating results. By the three months ended April 4, 2015, the Company’s infrastructure revenue improved, costs were lowered and operating losses were reduced in keeping with the strategic restructuring plan. However, subsequent to that date, unexpected declines in revenues resulted in an increase in operating losses. Therefore, the delayed improvement in infrastructure revenue is forecast to result in operating losses into 2016, larger than those foreseen under the strategic restructuring plan. Additionally, in future periods it is possible that the Company will not maintain compliance with certain covenants under its revolving credit facility (Note 9) which could result in outstanding borrowings being immediately due and payable and the termination of the revolving credit facility. The combination of these factors raises substantial doubt about the Company’s ability to continue as a going concern in 2016. Management’s plans to overcome these difficulties include financing all or part of its operations through additional equity or debt financing. However, there can be no assurance that additional financing will be available on satisfactory terms or at all. The Company also expects to continue to aggressively pursue available sales opportunities, work with distributors and end users to grow future sales, and continue to control costs. The ability to continue as a going concern in 2016 is dependent upon increasing infrastructure revenue, continuing to control costs and obtaining the necessary financing to meet obligations and repay liabilities arising from normal business operations when they come due. The condensed consolidated balance sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014. The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The Company has evaluated subsequent events and determined that there were no subsequent events to recognize or disclose in these unaudited interim condensed consolidated financial statements. |
New Accounting Pronouncements, Policy [Policy Text Block] | RECENTLY ADOPTED ACCOUNTING STANDARDS In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of an Entity IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers |
Income Tax, Policy [Policy Text Block] | INCOME TAXES The Company maintains a full valuation allowance on its deferred tax assets. Accordingly, the Company has not recorded a benefit or provision for income taxes. The Company recognizes interest and penalties related to the underpayment of income taxes in income tax expense. No unrecognized tax benefits, interest or penalties were accrued at July 4, 2015. The Company’s U.S. federal net operating losses have occurred since 1998 and as such, tax years subject to potential tax examination could apply from that date because carrying-back net operating loss opens the relevant year to audit. |
Standard Product Warranty, Policy [Policy Text Block] | WARRANTY Based on the examination of historical returns and other information it deems critical, the Company estimates that a current charge to income will need to be provided in order to cover future warranty obligations for products sold during the year. The accrued liability for warranty costs is included in Accrued liabilities in the condensed consolidated balance sheets. Changes in the Company’s product warranty reserve are as follows: Six months ended July 4, 2015 June 28, 2014 Beginning balance $ 237 $ 383 Additions charged to Cost of sales 19 133 Claims processed (120 ) (315 ) Ending balance $ 136 $ 201 |
Note 1 - Summary of Significa17
Note 1 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Notes Tables | |
Schedule of Product Warranty Liability [Table Text Block] | Six months ended July 4, 2015 June 28, 2014 Beginning balance $ 237 $ 383 Additions charged to Cost of sales 19 133 Claims processed (120 ) (315 ) Ending balance $ 136 $ 201 |
Note 2 - Restructuring and Ot18
Note 2 - Restructuring and Other Charges (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Notes Tables | |
Restructuring and Related Costs [Table Text Block] | Workforce-related Lease-related Total December 31, 2013 balance $ 245 - $ 245 Restructuring expense 4,002 197 4,199 Payments (3,502 ) (38 ) (3,540 ) December 31, 2014 balance $ 745 $ 159 $ 904 Restructuring expense 611 - 611 Payments (1,026 ) (79 ) (1,105 ) July 4, 2015 balance $ 330 $ 80 $ 410 |
Note 4 - Inventories (Tables)
Note 4 - Inventories (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | July 4, 2015 December 31, 2014 Raw materials $ 3,783 $ 4,584 Work in process 2,830 3,052 Finished goods 3,118 6,208 Total $ 9,731 $ 13,844 |
Note 6 - Stock Based Compensa20
Note 6 - Stock Based Compensation (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Notes Tables | |
Schedule of Nonvested Share Activity [Table Text Block] | Restricted Stock Units Stock Options Time-based Performance-based Time-based Units Weighted Average (WA) grant date fair value Units WA price/ unit Issuable upon exercise WA exercise price WA remaining contractual life (years) Outstanding at January 1, 201 5 2,790 $ 1.58 314 $ 1.87 1,219 $ 4.82 Granted 2,462 1.04 264 1.05 11 1.18 Shares vested/options exercised (1,440 ) 1.37 (10 ) 2.03 - - Forfeited/expired (141 ) 1.25 - - (131 ) 4.68 Outstanding at July 4, 2015 3,671 $ 1.31 568 $ 1.56 1,099 $ 4.80 3.2 Exercisable at July 4, 2015 N/A N/A N/A N/A 1,084 $ 4.85 3.2 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | Three months ended Six months ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Cost of sales $ 266 $ 246 $ 540 $ 522 Research and development expenses 472 522 925 1,076 Selling and administrative expenses 388 588 857 1,601 Total stock based compensation $ 1,126 $ 1,356 $ 2,322 $ 3,199 |
Schedule Of Share Based Payment Award Stock Option Awards And Employee Stock Purchase Plan Valuation Assumptions [Table Text Block] | Six months ended July 4, 2015 June 28, 2014 Stock option awards: Risk-free interest rate 1.3 % 1.7 % Expected volatility 63 % 58 % Average expected term (in years) 5.0 5.0 Expected dividend yield 0.0 % 0.0 % Weighted average fair value of options granted $ 0.63 $ 0.97 ESP Plan: Risk-free interest rate 0.3 % 0.1 % Expected volatility 77 % 57 % Average expected term (in years) 1.0 1.0 Expected dividend yield 0.0 % 0.0 % Weighted average fair value of purchase option $ 0.31 $ 0.28 Performance awards: Average risk-free interest rate 0.6 % 0.3 % Expected volatility 66.5 % 54.6 % Average expected term (in years) 3.0 3.0 Expected dividend yield 0.0 % 0.0 % Weighted average fair value of performance awards $ 1.05 $ 1.84 |
Note 7 - Loss Per Share (Tables
Note 7 - Loss Per Share (Tables) | 6 Months Ended |
Jul. 04, 2015 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Six months ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Weighted average common shares for basic loss per share 88,035 85,687 87,571 85,225 Effect of dilutive securities: Stock options (*) - - - - Unvested restricted stock units (*) - - - - Adjusted weighted average shares for diluted loss per share 88,035 85,687 87,571 85,225 |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | Three months ended Six months ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Stock options 1,099 1,272 1,099 1,272 Unvested restricted stock units 4,239 3,780 4,239 3,780 |
Note 1 - Summary of Significa22
Note 1 - Summary of Significant Accounting Policies (Details Textual) | Jul. 04, 2015USD ($) |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 |
Note 1 - Changes in Warranty Re
Note 1 - Changes in Warranty Reserve (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jul. 04, 2015 | Jun. 28, 2014 | |
Beginning balance | $ 237 | $ 383 |
Additions charged to Cost of sales | 19 | 133 |
Claims processed | (120) | (315) |
Ending balance | $ 136 | $ 201 |
Note 2 - Restructuring and Ot24
Note 2 - Restructuring and Other Charges (Details Textual) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
May. 31, 2015 | Jul. 04, 2015USD ($) | Jun. 28, 2014USD ($) | Jul. 04, 2015USD ($) | Jun. 28, 2014USD ($) | Dec. 31, 2014USD ($) | |
Employee Severance [Member] | ||||||
Restructuring Charges | $ 611 | $ 687 | $ 611 | $ 2,138 | $ 4,199 | |
Asset Write Downs [Member] | ||||||
Restructuring Charges | $ 3,722 | |||||
Restructuring and Related Cost, Number of Positions Eliminated | 25 | 60 | 100 | 150 | ||
Restructuring Charges | 561 | $ 4,409 | 561 | $ 5,860 | $ 4,199 | |
Gain (Loss) on Disposition of Property Plant Equipment | $ 50 | $ 6 | $ (3,705) | |||
Inventory Write-down | $ 2,080 |
Note 2 - Liability Balance Rela
Note 2 - Liability Balance Related to Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jul. 04, 2015 | Jul. 04, 2015 | Dec. 31, 2014 | |
Workforce Related [Member] | |||
Balance | $ 330 | $ 330 | $ 745 |
Restructuring expense | 611 | 4,002 | |
Payments | (1,026) | (3,502) | |
Lease Related [Member] | |||
Balance | 80 | $ 80 | 159 |
Restructuring expense | 197 | ||
Payments | $ (79) | (38) | |
Employee Severance [Member] | |||
Restructuring expense | 611 | 611 | 4,199 |
Balance | 410 | 410 | 904 |
Restructuring expense | $ 561 | 561 | 4,199 |
Payments | $ (1,105) | $ (3,540) |
Note 3 - Fair Value and Marke26
Note 3 - Fair Value and Marketable Securities (Details Textual) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 28, 2014 | Mar. 29, 2014 | |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Proceeds from Sale of Available-for-sale Securities, Debt | $ 2,960 | |
Fair Value, Inputs, Level 3 [Member] | Other Income [Member] | Preferred Equity Securities [Member] | ||
Gain (Loss) on Sale of Equity Investments | $ 568 | |
Fair Value, Inputs, Level 3 [Member] | Preferred Equity Securities [Member] | ||
Proceeds from Sale of Available-for-sale Securities, Equity | $ 568 | |
Interest And Other Expense [Member] | ||
Gain (Loss) on Sale of Debt Investments | $ 1,160 |
Note 4 - Summary of Inventories
Note 4 - Summary of Inventories (Details) - USD ($) $ in Thousands | Jul. 04, 2015 | Dec. 31, 2014 |
Raw materials | $ 3,783 | $ 4,584 |
Work in process | 2,830 | 3,052 |
Finished goods | 3,118 | 6,208 |
Total | $ 9,731 | $ 13,844 |
Note 6 - Stock Based Compensa28
Note 6 - Stock Based Compensation (Details Textual) - USD ($) | 1 Months Ended | 6 Months Ended |
Feb. 28, 2015 | Jul. 04, 2015 | |
Stock Appreciation Rights (SARs) [Member] | 2015 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 0 | |
Employee Stock Option [Member] | 2015 Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 10 years | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Employee Stock Option [Member] | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 146 days | |
Restricted Stock Units (RSUs) [Member] | Officers And Key Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 264,000 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.05 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 146 days | |
2015 Plan [Member] | ||
Deferred Compensation Arrangement with Individual, Common Stock Reserved for Future Issuance | 10,000,000 | |
The 2016 ESP Plan [Member] | ||
Deferred Compensation Arrangement with Individual, Common Stock Reserved for Future Issuance | 5,000,000 | |
Income Tax Expense (Benefit) | $ 0 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 2,775,000 |
Note 6 - Summary of Stock Optio
Note 6 - Summary of Stock Option and Restricted Stock Activity (Details) - Jul. 04, 2015 - $ / shares | Total |
Time Based Restricted Stock Units RSUs [Member] | |
Outstanding at January 1, 2015 (in shares) | 2,790,000 |
Outstanding at January 1, 2015 (in dollars per share) | $ 1.58 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 2,462,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.04 |
Shares vested/options exercised (in shares) | (1,440,000) |
Shares vested/options exercised (in dollars per share) | $ 1.37 |
Forfeited/expired (in shares) | (141,000) |
Forfeited/expired (in dollars per share) | $ 1.25 |
Outstanding at July 4, 2015 (in shares) | 3,671,000 |
Outstanding at July 4, 2015 (in dollars per share) | $ 1.31 |
Exercisable at July 4, 2015 (in shares) | 0 |
Exercisable at July 4, 2015 (in dollars per share) | $ 0 |
Performance Base Restricted Stock Units RSUs [Member] | |
Outstanding at January 1, 2015 (in shares) | 314,000 |
Outstanding at January 1, 2015 (in dollars per share) | $ 1.87 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 264,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 1.05 |
Shares vested/options exercised (in shares) | (10,000) |
Shares vested/options exercised (in dollars per share) | $ 2.03 |
Forfeited/expired (in shares) | |
Forfeited/expired (in dollars per share) | |
Outstanding at July 4, 2015 (in shares) | 568,000 |
Outstanding at July 4, 2015 (in dollars per share) | $ 1.56 |
Exercisable at July 4, 2015 (in shares) | 0 |
Exercisable at July 4, 2015 (in dollars per share) | $ 0 |
Time Based Stock Options [Member] | |
Outstanding at January 1, 2015 (in shares) | 1,219,000 |
Outstanding at January 1, 2015 (in dollars per share) | $ 4.82 |
Granted (in shares) | 11,000 |
Granted (in dollars per share) | $ 1.18 |
Forfeited/expired (in shares) | (131,000) |
Forfeited/expired (in dollars per share) | $ 4.68 |
Outstanding at July 4, 2015 (in shares) | 1,099,000 |
Outstanding at July 4, 2015 (in dollars per share) | $ 4.80 |
Outstanding at July 4, 2015 | 3 years 73 days |
Exercisable at July 4, 2015 (in shares) | 1,084,000 |
Exercisable at July 4, 2015 (in dollars per share) | $ 4.85 |
Exercisable at July 4, 2015 | 3 years 73 days |
Note 6 - Allocation of Share-ba
Note 6 - Allocation of Share-based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Cost of Sales [Member] | ||||
Allocated Share Based Compensation Expense | $ 266 | $ 246 | $ 540 | $ 522 |
Research and Development Expense [Member] | ||||
Allocated Share Based Compensation Expense | 472 | 522 | 925 | 1,076 |
Selling, General and Administrative Expenses [Member] | ||||
Allocated Share Based Compensation Expense | 388 | 588 | 857 | 1,601 |
Allocated Share Based Compensation Expense | $ 1,126 | $ 1,356 | $ 2,322 | $ 3,199 |
Note 6 - Weighted Average Assum
Note 6 - Weighted Average Assumptions and Fair Values for Stock-based Compensation Grants (Details) - $ / shares | 6 Months Ended | |
Jul. 04, 2015 | Jun. 28, 2014 | |
Employee Stock Option [Member] | ||
Risk-free interest rate | 1.30% | 1.70% |
Expected volatility | 63.00% | 58.00% |
Average expected term (in years) | 5 years | 5 years |
Expected dividend yield | 0.00% | 0.00% |
Weighted average fair value of options granted (in dollars per share) | $ 0.63 | $ 0.97 |
Employee Stock Purchase Plan [Member] | ||
Risk-free interest rate | 0.30% | 0.10% |
Expected volatility | 77.00% | 57.00% |
Average expected term (in years) | 1 year | 1 year |
Expected dividend yield | 0.00% | 0.00% |
Weighted average fair value of options granted (in dollars per share) | $ 0.31 | $ 0.28 |
Performance Shares [Member] | ||
Risk-free interest rate | 0.60% | 0.30% |
Expected volatility | 66.50% | 54.60% |
Average expected term (in years) | 3 years | 3 years |
Expected dividend yield | 0.00% | 0.00% |
Weighted average fair value of options granted (in dollars per share) | $ 1.05 | $ 1.84 |
Note 7 - Reconciliation of Earn
Note 7 - Reconciliation of Earnings (Loss) Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | |||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | ||
Weighted average common shares for basic loss per share (in shares) | 88,035,000 | 85,687,000 | 87,571,000 | 85,225,000 | |
Stock options (*) (in shares) | [1] | 0 | 0 | 0 | 0 |
Unvested restricted stock units (*) (in shares) | [1] | 0 | 0 | 0 | 0 |
Adjusted weighted average shares for diluted loss per share (in shares) | 88,035,000 | 85,687,000 | 87,571,000 | 85,225,000 | |
[1] | Incremental shares from restricted stock units and stock options are computed using the treasury stock method. |
Note 7 - Antidilutive Securitie
Note 7 - Antidilutive Securities Excluded from Earnings (Loss) Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jul. 04, 2015 | Jun. 28, 2014 | Jul. 04, 2015 | Jun. 28, 2014 | |
Equity Option [Member] | ||||
Antidilutive Securities (in shares) | 1,099 | 1,272 | 1,099 | 1,272 |
Unvested Restricted Shares And Units [Member] | ||||
Antidilutive Securities (in shares) | 4,239 | 3,780 | 4,239 | 3,780 |
Note 9 - Bank Borrowings Unde34
Note 9 - Bank Borrowings Under Credit Facility (Details Textual) - USD ($) $ in Millions | 1 Months Ended | |
Oct. 24, 2014 | Jul. 04, 2015 | |
Line of Credit [Member] | SVB Loan Agreement Member | Prime Rate [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |
Line of Credit [Member] | SVB Loan Agreement Member | ||
Line of Credit Facility, Expiration Date | Oct. 24, 2016 | |
Debt Instrument, Term | 2 years | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 10 | |
Line Of Credit Facility Percent Of Eligible Accounts Receivable | 85.00% | |
Long-term Line of Credit | $ 4 | |
Line of Credit [Member] | PNC Credit Agreement [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 11 | |
Debt Instrument, Term | 3 years |
Uncategorized Items - anad-2015
Label | Element | Value |
Lease Related [Member] | ||
Accrued restructuring costs | us-gaap_RestructuringReserve | |
Workforce Related [Member] | ||
Accrued restructuring costs | us-gaap_RestructuringReserve | $ 245 |