Exhibit 99.1
ANADIGICS REPORTS RESULTS FOR THIRD QUARTER 2003
WLAN Revenue Grows 47% Over Last Quarter
Wireless CDMA PA Unit Shipments Increase 13% Over Last Quarter
WARREN, NJ -October 20, 2003- ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier
of wireless and broadband communications solutions, today reported net sales of
$17.8 million and a loss per share of $0.41 for the third quarter ended
September 27, 2003. This compares to revenues of $18.0 million in the second
quarter of 2003.
Wireless revenues in the quarter were $9.5 million, reflecting an increase of
5.6% over the prior quarter. CDMA PA revenues accounted for 82% of Wireless
revenues. Total unit shipments in Wireless were up by 31%, with CDMA Power
Amplifier (PA) unit shipments up 13% over the prior quarter. Broadband revenues
of $8.3 million declined 8.4% from the previous quarter reflecting seasonal
order patterns and continued industry softness for CATV products. WLAN revenue
increased 47% sequentially. The combined revenue growth of Wireless and WLAN
resulted in a sequential growth of 8.4% over the previous quarter.
"We have continued to increase our share of the CDMA and WLAN markets as
reflected by our third quarter results and we anticipate this growth will
continue into the fourth quarter" remarked Dr. Bami Bastani. "We are now
designed into a leading tier-one GSM/GPRS reference design and have passed field
type approval for certain GSM handset platforms, which establishes our beachhead
for growing market share in GSM, the largest handset market in the world."
The Company's balance sheet remains strong as cash and marketable securities
totaled $128.3 million at September 27, 2003.
1
HIGHLIGHTS OF THE QUARTER
o ANADIGICS Purchases TAVANZA CDMA Handset Power Amplifier Business from
Celeritek
Warren, NJ, October 15, 2003-- ANADIGICS, Inc. (Nasdaq: ANAD), a leading
supplier of wireless and broadband communications solutions, today
announced that it has acquired the assets utilized in the wireless handset
power amplifier business previously conducted by Tavanza, a subsidiary of
Celeritek, to broaden its CDMA product line and to accelerate its
penetration into strategic handset OEM customers. The agreement includes
3mm x 3mm x 1mm CDMA power amplifiers, technology, and intellectual
property, as well as the recruitment of key RF engineering personnel
related to the product line. Celeritek announced in September 2003 that
Celeritek is exiting its handset power amplifier business to focus on
GaAs-based subsystems and semiconductors for the defense markets.
o ANADIGICS Opens Taiwan Application Center
On September 22, 2003 the Company announced the opening of a new
application center in Taipei, Taiwan to support growing customer demand for
ANADIGICS' WLAN, CDMA, and GSM RF products. The new facility's staff of
highly experienced application engineers will provide local applications
support to the Company's OEM and ODM customer base by facilitating the
customer RF design process and shortening time to market for wireless and
broadband end products.
o ANADIGICS Announces New Patent For Wireless Multi-Band Amplifier
On August 4, 2003 the Company announced its third patent for the
development of a wireless multi-band amplifier circuit. US Patent No.
6,501,331 was granted for the development of a GaAs MMIC dual-band
amplifier for use in wireless handsets for operation at either 800MHz or
the 1900MHz band to provide gain and input/output impedance.
CONFERENCE CALL
ANADIGICS' senior management will conduct a conference call today at 8:30 AM
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 Website or by dialing 1-800-945-1517.
# # #
2
ANADIGICS (NASDAQ: ANAD) designs and manufactures radio frequency integrated
circuit (RFIC) solutions for growing broadband and wireless communications
markets. The Company's innovative high frequency RFICs enable manufacturers of
communications equipment to enhance overall system performance while reducing
manufacturing cost and time to market. By utilizing state-of-the-art
manufacturing processes for its RFICs, ANADIGICS achieves the high-volume and
cost-effective products required by leading companies in its targeted
high-growth communications markets. ANADIGICS was the first GaAs IC manufacturer
to receive ISO 9001 certification.
Except for historical information contained herein, this press release contains
forward-looking statements that involve risks and uncertainties, including, but
not limited to, order rescheduling or cancellation, changes in customers'
forecasts of product demand, timely product and process development and
protection of the associated intellectual property rights, individual product
pricing pressure, variation in production yield, changes in estimated product
lives, difficulties in obtaining components and assembly and test services
needed for production of integrated circuits, change in economic conditions of
the various markets the Company serves, as well as the other risks detailed from
time to time in the Company's reports filed with the Securities and Exchange
Commission, including the report on Form 10-K for the year ended December 31,
2002. Actual results could differ materially from the Company's forward-looking
statements. These forward-looking statements 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 the Company's future plans, objectives, estimates, or goals are
forward-looking statements. Important factors that could cause actual results
and developments to be materially different from those expressed or implied by
such statements include those factors discussed herein.
Press Contacts Corporate Contact Investor Relations
- -------------- ----------------- ------------------
Allan Fliss Tim Blanke Thomas Shields
Richartz Fliss Clark & Pope ANADIGICS, Inc. ANADIGICS, Inc.
400 Morris Ave., Ste. 222 141 Mt. Bethel Road 141 Mt. Bethel Road
Denville, NJ 07834 Warren, NJ 07059 Warren, NJ 07059
Tel: +1 973 627-8180 Tel: +1 908 668-5000 Tel: +1 908 412-5995
Fax: +1 973 627-8410 Fax: +1 908 668-5132
E-mail: fliss@rfcp.com E-mail: tblanke@anadigics.com E-mail:tshields@anadigics.com
-------------- --------------------- ----------------------
3
ANADIGICS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Amounts in thousands, except share and per share amounts)
(Unaudited)
Three Months Ended Nine Months Ended
------------------------------- -------------------------------
Sept. 27, 2003 Sept. 28, 2002 Sept. 27, 2003 Sept. 28, 2002
-------------- -------------- -------------- --------------
Net sales $ 17,750 $ 21,288 $ 51,874 $ 63,830
Cost of sales 17,690 21,225 51,199 59,062
------------ ------------ ------------ ------------
Gross profit 60 63 675 4,768
Research and development expenses 7,937 7,586 23,264 22,863
Selling and administrative expenses 4,735 5,463 13,703 16,398
Restructuring and other charges - 2,286 625 5,001
Asset impairment charges - 3,087 - 6,331
Goodwill impairment charge - 8,043 - 8,043
Purchased in-process research and development - - 1,690 -
------------ ------------ ------------ ------------
Operating loss (12,612) (26,402) (38,607) (53,868)
Interest income 741 1,543 2,628 4,959
Interest expense (940) (1,307) (2,821) (4,171)
Impairment on investments - (390) - (390)
Gain on notes repurchase - 12,581 - 12,581
Other income (expense) 183 (5) 160 (3)
------------ ------------ ------------ ------------
Net loss before cumulative effect of accounting change (12,628) (13,980) (38,640) (40,892)
Cumulative effect of accounting change - - - (8,010)
------------ ------------ ------------ ------------
Net loss $ (12,628) $ (13,980) $ (38,640) $ (48,902)
============ ============ ============ ============
Basic and diluted loss per share
Net loss before cumulative effect of accounting change $ (0.41) $ (0.46) $ (1.26) $ (1.34)
============ ============ ============ ============
Net loss $ (0.41) $ (0.46) $ (1.26) $ (1.60)
============ ============ ============ ============
Weighted average common and
dilutive securities outstanding 30,674,033 30,585,540 30,674,033 30,578,630
============ ============ ============ ============
ANADIGICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)
September 27, 2003 December 31, 2002
------------------ -----------------
(unaudited)
Assets
Current assets:
Cash, short-term investments, and cash equivalents $ 84,936 $ 98,381
Accounts receivable 10,879 9,016
Inventory 11,327 13,277
Prepaid expenses and other current assets 3,457 4,600
-------- --------
Total current assets 110,599 125,274
Marketable securities 43,363 57,137
Plant and equipment, net 57,264 68,600
Goodwill and other intangibles, net of amortization 1,351 --
Other assets 3,871 4,660
-------- --------
$216,448 $255,671
======== ========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 8,248 $ 7,434
Accrued liabilities 4,367 4,733
Accrued restructuring costs 2,103 2,956
Current maturities of capital lease obligations 96 --
-------- --------
Total current liabilities 14,814 15,123
Other long-term liabilities 2,913 2,760
Long-term debt, less current portion 66,700 66,700
Stockholders' equity 132,021 171,088
-------- --------
$216,448 $255,671
======== ========