Exhibit 99.1
ANADIGICS REPORTS FOURTH QUARTER 2003 RESULTS
> Revenues $23.3M; Up 31.5% Sequentially
> Wireless Revenues Sequentially up 53%
> CDMA PA Module Market Share Approaches 25%
> Ships 1st GSM Production Orders to ASIAN ODMs
> With improved visibility, the Company resumes quarterly guidance
WARREN, NJ--January 28, 2004--ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier
of wireless and broadband communications solutions, today reported fourth
quarter revenues of $23.3 million, representing a 31.5% improvement from the
prior quarter. The net loss per share improved to $0.39 compared with $0.41
reported in the prior quarter.
Wireless revenues in the quarter were $14.5 million, an increase of 52.7% over
prior quarter and 26.7% over prior-year quarter. The strong revenue growth
results from increased customer demand for the Company's CDMA power amplifier
modules and the Company's expanded market share penetration with existing
strategic customers. These include such popular models as LG's VX6000, VX 4400,
VX 3100, Kyocera's Phantom, Blade, Rave, and Audiovox's CMD8400. Also, during
the quarter the Company commenced production shipments of GSM power amplifier
modules to two Asian ODMs. The Company approximates its CDMA power amplifier
market share at 25% in the fourth quarter.
Broadband revenues were $8.8 million, an increase of 7.1% over prior quarter and
21.3% over prior-year quarter. The growth results from increased shipments of
WLAN power amplifiers and tuner ICs for set-top boxes.
"The fourth quarter was a strong period for ANADIGICS in which we significantly
grew our CDMA market share and executed flawlessly to achieve strategic design
wins and production orders for our new GSM handset and WLAN products", said Dr.
Bami Bastani, President & CEO of ANADIGICS, Inc. "In 2003, ANADIGICS introduced
differentiated products and established strong relationships with leading OEMs,
ODMs and tier-one reference design providers to enter the large GSM handset and
the growing WLAN market. As a result, we have now tripled our served available
market, from one year ago, to more than one billion dollars thus setting the
stage for a strong 2004."
The Company's gross profit improved to $2.3 million or 10% reflecting the
increased revenue and utilization of the Company's wafer fabrication facility.
Operating expenses were $14.2 million. The operating expenses include (1)
certain acquisition-related costs pertaining to the purchase of the Tavanza
CDMA handset power amplifier business from Celeritek; (2) a reclassification of
certain fixed allocation costs from Cost of Sales to below-the-line operating
expenses; and, (3) certain expenses resulting from strategic initiatives
implemented by the Company including (a) the establishment of a new CDMA design
center in San Jose, California servicing new Tier 1 handset customer
opportunities; (b) the opening of new application centers in Taipei, Taiwan, and
Seoul, Korea servicing revenue opportunities with ODM handset customers; and,
(c) accelerated R&D investments primarily in GSM to further fuel 2004 revenue
opportunities.
Included in the fourth quarter earnings loss were (1) acquisition-related costs
of $0.5 million or approximately $0.02 per share pertaining to the purchase of
the Tavanza and (2) offsetting financial adjustments including (a) a
restructuring charge of $0.3 million; (b) a tax benefit of $0.4 million.
The Company's Cash position (including marketable securities) remains strong
totaling $121.6 million at December 31, 2003. Cash used in the quarter was $6.7
million and included the purchase of the Tavanza business.
Business Outlook
The Company is resuming quarterly financial guidance effective today, due to
improved order visibility. As such, for the first quarter of 2004, the Company
anticipates revenue of approximately $19 - $21 million and expects an earnings
loss per share of approximately $0.41 - $0.43.
ANADIGICS is positive about the growth prospects for each of its served markets
and the Company believes its strategic initiatives will continue to provide
gross margin and operating expense improvements and anticipated revenue growth
to favorably impact the financial results in 2004.
Highlights of the Quarter
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ANADIGICS Receives Production Orders for GSM/GPRS Power Amplifier Modules from
Two GSM Handset Manufacturers
November 20, 2003 - Announced that the Company has
received production orders for its leading quad-band GSM/GPRS power amplifier
modules from two GSM handset manufacturers in Asia. ANADIGICS' AWT6108 GSM/GPRS
PA module has been selected by a handset OEM in Taiwan for two new GSM/GPRS
clamshell phones including a camera-enabled tri-band handset. The ANADIGICS PA
was also selected by an ODM in China for a dual-band GSM handset serving the
domestic China market and scheduled for introduction in early 2004.
ANADIGICS Power Amplifier Selected for Three Major GSM/GPRS
Reference Designs
November 18, 2003 - Announced that its AWT6108 quad-band GSM/GPRS module has
been chosen as the recommended power amplifier by three major GSM reference
designs. The reference designs provide a recommended bill of
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materials, established architecture, optimized interfaces among critical
components, and qualified system-level performance to enable GSM handset OEMs
and ODMs to significantly reduce development time for dual, tri, and quad-band
handsets. The selection of ANADIGICS' AWT6108 power amplifier in these reference
designs is expected to increase the adoption of the Company's GSM/GPRS power
amplifier solutions in new handset models.
ANADIGICS Introduces 7mm x 7mm GSM/GPRS Power Amplifier Module with Integrated
Power Control
November 25, 2003 - Announced a 7 mm by 7 mm GSM quad band power
amplifier (PA) with integrated power control. The AWT6146 PA uses a pin-out that
is compatible with ANADIGICS' current generation of 10 mm by 7 mm PAs, enabling
its handset customers to reduce time-to-market for new platforms that adopt the
smaller PA. The RF engine and power control scheme are also compatible with the
previous generation, reducing the requirement for software changes and
minimizing production calibration needs for GSM handset manufacturers. The new
PA module features ANADIGICS' industry-leading InGaP HBT technology, which
provides superior performance, reliability, and manufacturing yield compared to
AlGaAs technology.
ANADIGICS Announces Production Shipments of Power Amplifiers to Kyocera for the
Rave(TM), Blade(TM), & Phantom(TM) CDMA Handsets Offered by Verizon Wireless and
Other Operators
November 3, 2003 - Announced that the Company is shipping
production volumes of power amplifiers (PAs) to Kyocera for the Rave(TM),
Blade(TM), and Phantom(TM) CDMA Handsets. Kyocera selected ANADIGICS' 4mm x 4mm
InGaP HBT PA modules to meet the requirements of this new lineup of affordable,
user-friendly and feature-rich CDMA handsets. ANADIGICS' small form factor power
amplifier modules support the handsets' CDMA2000 1X data functionality, as well
as color screens and unique features such as a built-in LED flashlight option.
ANADIGICS Ships Power Amplifiers and RF Switches in High Volume for the Popular
VX3100 & VX4400 LG Phones
October 22, 2003 - Announced that the Company is
shipping production volumes of CDMA PAs and RF switches to LG Electronics, a
global provider of electronics and telecommunications products, for two phone
models. LG selected ANADIGICS AWT6111 InGaP HBT PA for the VX4400 phone and the
AWS5533 pHEMT RF switch for the VX3100 phone because ANADIGICS was able to meet
LG's strict quality requirements while delivering high production volumes at
competitive prices.
Brian Hurst Joins ANADIGICS as Vice President of Worldwide Sales & Marketing
December 17, 2003 - Announced that Brian Hurst has joined the Company as Vice
President of Worldwide Sales & Marketing. Hurst has over 25 years of sales and
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marketing experience including executive positions at National Semiconductor,
Transmeta Corporation, and OmniVision. He brings to ANADIGICS extensive
knowledge in developing strategic sales relationships with top tier electronics
OEMs as well as a strong background in establishing marketing alliances with
semiconductor industry leaders.
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 Web site or by dialing 1-800-374-1216.
ANADIGICS, Inc. (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,
and reduce 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
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ANADIGICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share amounts)
Three Months Ended Year Ended
------------------------------- ------------------------------
Dec. 31, 2003 Dec. 31, 2002 Dec. 31, 2003 Dec. 31, 2002
------------- ------------- ------------- --------------
(Unaudited) (Unaudited)
Net sales $ 23,338 $ 18,734 $ 75,212 $ 82,564
Cost of sales 21,060 16,240 71,927 75,302
------------- ------------- ------------- -------------
Gross profit 2,278 2,494 3,285 7,262
Research and development expenses 8,609 6,879 32,075 29,742
Selling and administrative expenses 5,586 5,002 19,420 21,400
Restructuring and other charges 300 - 925 5,001
Asset impairment charges - 2,310 - 8,641
Goodwill impairment charge - - - 8,043
Purchased in-process research and development 173 - 1,863 -
------------- ------------- ------------- -------------
Operating loss (12,390) (11,697) (50,998) (65,565)
Interest income 715 1,350 3,344 6,309
Interest expense (940) (948) (3,761) (5,119)
Impairment on investments - - - (390)
Gain on notes repurchase - - - 12,581
Other income 116 4 276 1
------------- ------------- ------------- -------------
Loss before income taxes (12,499) (11,291) (51,139) (52,183)
Benefit for income taxes (382) (4,307) (382) (4,307)
------------- ------------- ------------- -------------
Net loss before cumulative effect of accounting change (12,117) (6,984) (50,757) (47,876)
Cumulative effect of accounting change - - - (8,010)
------------- ------------- ------------- -------------
Net loss $ (12,117) $ (6,984) $ (50,757) $ (55,886)
============= ============= ============= =============
Basic and diluted loss per share
Net loss before cumulative effect of accounting change $ (0.39) $ (0.23) $ (1.65) $ (1.57)
============= ============= ============= =============
Net loss $ (0.39) $ (0.23) $ (1.65) $ (1.83)
============= ============= ============= =============
Weighted average common and
dilutive securities outstanding 30,812,859 30,607,663 30,716,749 30,587,032
============= ============== ============= =============
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ANADIGICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)
December 31, 2003 December 31, 2002
----------------------- -----------------------
Assets
Current assets:
Cash, short-term investments, and cash equivalents $72,655 $98,381
Accounts receivable 12,074 9,016
Inventory 10,321 13,277
Prepaid expenses and other current assets 3,243 4,600
---------------------- ----------------------
Total current assets 98,293 125,274
Marketable securities 48,975 57,137
Plant and equipment, net 55,242 68,600
Goodwill and other intangibles, net of amortization 1,788 -
Other assets 3,600 4,660
---------------------- ----------------------
$207,898 $255,671
====================== ======================
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $9,497 $7,434
Accrued liabilities 5,618 4,733
Accrued restructuring costs 1,994 2,956
Current maturities of capital lease obligations 84 -
---------------------- ----------------------
Total current liabilities 17,193 15,123
Other long-term liabilities 2,959 2,760
Long-term debt, less current portion 66,700 66,700
Stockholders' equity 121,046 171,088
---------------------- ----------------------
$207,898 $255,671
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