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ANADIGICS Announces Second Quarter 2007 Results

2007-07-25 09:06 12401

Achieves Record Quarterly Net Sales of $53.9 million; up 8.7% sequentially and 37% From Year Ago Quarter

Delivers GAAP EPS of $0.03; Pro Forma Diluted EPS of $0.10

Expects Sequential Third Quarter Net Sales Growth of 10%; GAAP Diluted EPS of $0.06 and Pro Forma Diluted EPS of $0.12

WARREN, N.J., July 25 /Xinhua-PRNewswire/ --

ANADIGICS, Inc. (Nasdaq: ANAD), a leading provider of semiconductor solutions in the rapidly growing broadband wireless and wireline communications markets, reported record quarterly second quarter 2007 net sales of $53.9 million, an increase of 8.7% compared with net sales of $49.6 million in the prior quarter, and an increase of 37% compared to net sales of $39.3 million in the year ago quarter.

Net income was $1.9 million, or $0.03 per share, compared with net loss of $1.2 million, or $0.02 per share in the prior quarter and net loss of $2.8 million, or $0.06 per share in the year ago quarter. Pro forma income for the second quarter 2007, which excludes non-cash stock compensation expense, increased $2.0 million sequentially to $5.7 million or $0.10 per diluted share.

"We achieved significant milestones in the second quarter with record revenue, led by our 3G portfolio with revenue growth of 38% sequentially and 83% year-over-year, and GAAP net income," said Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "ANADIGICS is well positioned strategically in the three-mega trend growth markets of 3G, WLAN and CATV to capitalize on our strong market position to fuel our revenue growth and financial performance."

As of June 30, 2007 cash and short and long-term marketable securities totaled $181.1 million compared with $179.2 million at March 31, 2007.

"Our resolve to accelerate our financial performance through a strategically aligned product portfolio and a balanced operating base is a testament of our commitment to building shareholder value," said Tom Shields, Executive Vice President and Chief Financial Officer. "Our financial leverage continues to improve, which is expected to further strengthen our financial results over the foreseeable future."

Outlook for the Third Quarter 2007

Net sales for the third quarter 2007 are expected to increase sequentially by approximately 10%. Net sales at this level would represent a 35% increase on a comparable basis with third quarter 2006. Net income per share on a GAAP basis for the third quarter 2007 is expected to approximate $0.06. Pro forma diluted earnings per share, excluding non-cash stock compensation expense, are expected to increase sequentially to approximately $0.12. The net income and pro forma diluted earnings per share is based upon an estimated diluted weighted average outstanding common share count of 61.0 million.

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 and for planning purposes. 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 equity-based compensation and discontinued operations. These financial measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for net loss or loss per share prepared in accordance with GAAP. Reconciliations of reported net loss and reported loss per share to non-GAAP net income or loss and non-GAAP income or loss per share, respectively, are included at the end of 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 http://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 (800) 839-2417 (available until July 31).

Recent Highlights

-- July 09, 2007 - ANADIGICS and Kunshan New and Hi-Tech Industrial

Development Zone Break Ground for GaAs Wafer Fabrication Facility in

China

-- June 27, 2007 - ANADIGICS' 3G Penta-band Power Amplifier Slides Into

Samsung's Sleek Smartphone Ultra-Thin, Stylish Slider Handset SGH-I520

-- June 13, 2007 - Beceem Selects ANADIGICS Amplifiers for Mobile WiMAX

ANADIGICS PAs Power Beceem's BCS200 Wave 2 Reference Designs

-- June 13, 2007 - ANADIGICS' New ZeroIC(TM) CDMA Power Amplifiers

Compatible with QUALCOMM CDMA2000(TM) and 1xEVDO(TM) Reference Designs

-- June 12, 2007 - ANADIGICS Ships WCDMA PAs for Huawei's Music Optimized

3G Handset ANADIGICS' AWT6279 PA Selected for Stylish, Feature-Rich

U120 Mobile Phone

-- June 05, 2007 - ANADIGICS Powers Emerging Markets CDMA450 3G Cell

Phones with Small and Efficient Linear PA

-- May 22, 2007 - ANADIGICS Lights Up Samsung's Thin Neon 3G Handset

-- May 21, 2007 - ANADIGICS Introduces New Integrated 1GHz RF Amplifier to

Enhance Tuner Performance in Cable Boxes and TVs

-- May 21, 2007 - ANADIGICS Announces the Appointment of David Fellows to

the Company's Board of Directors

-- May 16, 2007 - ANADIGICS' Power Amplifier Enables Samsung's Ultra-Slim

3G EVDO Handset

-- May 15, 2007 - ANADIGICS' PA Equips Samsung's Ultra MPEG4 Video 3G

Phone

-- May 14, 2007 - New ANADIGICS Linear EDGE Power Amp Module Supports

Longer Broadband Data Transmit Times in 2.75G and 3G Phones, PDAs, and

Wireless PC Cards

-- May 10, 2007 - ANADIGICS Introduces First Complete RF Front-End Chip

Set for DOCSIS(R) 3.0 Cable Modems

-- May 09, 2007 - ANADIGICS Supplies 3G Power Amplifiers for LG

Electronics' VX9400 TV Capable Phone

-- May 07, 2007 - ANADIGICS Powers LG Electronics Stylish Shine 3G Mobile

Phone

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, 2006, and those discussed elsewhere herein.

Press Contact Corporate Contact Investor Relations

Chuck Manners Jennifer Palella Thomas Shields

Godfrey ANADIGICS, Inc. ANADIGICS, Inc.

40 N. Christian Street 141 Mt. Bethel Road 141 Mt. Bethel Road

Lancaster, PA 17602 Warren, NJ 07059 Warren, NJ 07059

Tel: +1 717 393-3831 Tel: +1 908 668-5000 Tel: +1 908 412-5995

Fax: +1 717 393-1403 Fax: +1 908 412-5978

chuck@godfrey.com jpalella@anadigics.com tshields@anadigics.com

ANADIGICS, INC.

Consolidated Statements of Operations

(Amounts in thousands, except per share amounts, unaudited)

Three months ended Six months ended

June 30, July 1, June 30, July 1,

2007 2006 2007 2006

Net sales $53,869 $39,348 $103,442 $74,043

Cost of sales 34,963 28,237 68,250 53,526

Gross profit 18,906 11,111 35,192 20,517

Research and development expenses 11,080 8,358 20,818 16,364

Selling and administrative

expenses 7,482 5,678 14,841 10,942

Operating income (loss) 344 (2,925) (467) (6,789)

Interest income 2,198 1,567 3,438 2,430

Interest expense (655) (1,287) (1,280) (2,575)

Other income - 21 - 21

Income (loss) from continuing

operations 1,887 (2,624) 1,691 (6,913)

Loss from discontinued operations

(1) - (163) (965) (511)

Net income (loss) $1,887 $(2,787) $726 $(7,424)

Basic earnings (loss) per share

Income (loss) from continuing

operations $0.03 $(0.06) $0.03 $(0.17)

Loss from discontinued operations

(1) $- $- $(0.02) $(0.01)

Net income (loss) $0.03 $(0.06) $0.01 $(0.18)

Diluted earnings (loss) per share

Income (loss) from continuing

operations $0.03 $(0.06) $0.03 $(0.17)

Loss from discontinued operations

(1) $- $- $(0.02) $(0.01)

Net income (loss) $0.03 $(0.06) $0.01 $(0.18)

Basic shares outstanding 56,523 47,198 52,419 42,184

Diluted shares outstanding 59,604 47,198 55,774 42,184

Unaudited Reconciliation of GAAP to Pro Forma Non-GAAP Financial Measures

GAAP net income (loss) $1,887 $(2,787) $726 $(7,424)

Stock compensation expense in

continuing operations

Cost of sales 851 375 1,751 674

Research and development 1,392 697 2,892 1,265

Selling, general and

administrative 1,597 660 3,073 1,205

Loss from discontinued operations - 163 965 511

Pro forma net income (loss) $5,727 $(892) $9,407 $(3,769)

Pro forma earnings (loss) per

share *

Basic $0.10 $(0.02) $0.18 $(0.09)

Diluted $0.10 $(0.02) $0.17 $(0.09)

(*) Calculated using related GAAP shares outstanding.

(1) The loss from discontinued operations reflects the divestiture of Telcom Devices, Inc., effective April 2, 2007.

ANADIGICS, INC.

Condensed Consolidated Balance Sheets

(Amounts in thousands)

June 30, 2007 December 31, 2006

Assets (Unaudited)

Current assets:

Cash and cash equivalents $43,575 $13,706

Marketable securities 128,755 60,892

Accounts receivable 33,561 26,707

Inventory 18,967 19,701

Prepaid expenses and other

current assets 5,683 2,632

Assets of discontinued

operations (1) 21 1,429

Total current assets 230,562 125,067

Marketable securities 8,811 8,884

Plant and equipment, net 53,801 41,259

Goodwill and other intangibles,

net of amortization 5,918 5,929

Other assets 1,231 1,463

$300,323 $182,602

Liabilities and stockholders'

equity

Current liabilities:

Accounts payable $22,794 $17,879

Accrued liabilities 6,526 5,588

Capital lease obligations - 312

Liabilities of discontinued

operations (1) 152 252

Total current liabilities 29,472 24,031

Other long-term liabilities 3,298 3,348

Long-term debt 38,000 38,000

Long-term capital lease

obligations - 1,463

Stockholders' equity 229,553 115,760

$300,323 $182,602

(1) The Company disposed of the assets of its subsidiary, Telcom Devices, Inc. on April 2, 2007.

*The condensed balance sheet at December 31, 2006 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.

Source: ANADIGICS, Inc.
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