8-K 1 q305earnings.htm ANADIGICS Q305 EARNINGS anadigics q305 earnings

 
UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION 
Washington, DC 20549
FORM 8-K 
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): October 24,  2005  
 
 
Commission File Number: 0-25662
 
 ANADIGICS, Inc.
 (Exact name of registrant as specified in its charter)
 Delaware      
 22-2582106
 (State or other jurisdiction of incorporation or organization)
 (IRS Employer Identification Number)
   
 141 Mt. Bethel Road, Warren, NJ  07059
 07059
 (Address of prinicipal executive offices)
 (Zip Code)
   
 908-668-5000
 (Registrants telephone number, including area code)
 
Item 2.02 Results of Operations and Financial Condition 
 
On October 24, 2005, ANADIGICS Inc. ("ANADIGICS") is issuing a press release and holding a conference call announcing its financial results for the quarter ending October 1, 2005. A copy of the release is furnished as Exhibit 99.1 to this Form 8-K. The information in this Form 8-K and the Exhibit attached hereto is furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
 
Item 9.01. Financial Statements and Exhibits 
 
(c) Exhibits
 
99.1 Press release issued by ANADIGICS, Inc. dated October 24, 2005.
 
SIGNATURES 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
     
ANADIGICS, Inc.
 
Date: October 24, 2005
 
 
By:
 
 
/s/ Thomas Shields
 
   
 
Sr. Vice President & CFO
 
 
EXHIBIT INDEX
 
 
EXHIBIT NO.
 
  
 
DESCRIPTION
 
 99.1        Press release dated October 24, 2005, announcing ANADIGICS, Inc.'s financial results for the third quarter ended October 1, 2005.


ANADIGICS REPORTS RESULTS FOR THIRD QUARTER 2005

WARREN, NJ—October 24, 2005—ANADIGICS, Inc. (Nasdaq: ANAD), a leading supplier of wireless and broadband communications solutions, reported third quarter 2005 net sales of $29.3 million compared to net sales of $23.9 million in the prior quarter and $25.1 million in the year ago quarter. The net loss for the quarter was $6.8 million or $0.20 per share compared with a net loss of $9.1 million or $0.27 per share in the prior quarter and $8.3 million or $0.25 per share in the year ago quarter.

For the nine months ended October 1, 2005 net sales were $75.0 million compared with $68.9 million in the nine months ended October 2, 2004. The net loss for the nine months ended October 1, 2005 was $27.3 million or $0.81 per share compared with $32.8 million or $1.02 per share in the prior year.

As of October 1, 2005, cash and short and long-term marketable securities totaled $87.2 million compared with $90.0 million at the end of the second quarter 2005.

“We are extremely pleased with our overall third quarter financial performance,” said Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. “Our 22.6% sequential revenue growth and improved operating results were led by a 45% sequential increase in Wireless that highlights our market share increase and expansion in GSM/GPRS, EDGE, and WCDMA handsets. Broadband also delivered solid results with a sequential revenue increase of 6% led by a 34% growth in WiFi sales.”

The Company also noted that the Strategic Planning Committee of the Company’s Board of Directors continues to evaluate strategic initiatives as previously communicated.

Outlook for Fourth Quarter 2005
Net sales are expected to grow by approximately 15% in the fourth quarter 2005 based on continued sequential growth in both Wireless and Broadband. Loss per share is estimated to improve by 35% for the fourth quarter of 2005.

RECENT HIGHLIGHTS
October 19, 2005 - ANADIGICS Unveils High Performance Fiber-to-the-Home/Fiber-to-the-Premises RF Amplifier
September 26, 2005 - ANADIGICS Raises the Bar with HELP2™ CDMA Power Amplifiers
September 12, 2005 - ANADIGICS Expands HELP™ WCDMA Power Amplifier Family
August 4, 2005 - ANADIGICS Expands Intellectual Property Portfolio
July 25, 2005 - ANADIGICS Unveils New Family of Dual-Band CDMA Power Amplifiers

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 (800) 688-7945 (available until October 31).

# # #
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 and is certified to the ISO 9001:2000 and ISO 14001:1996 quality standards.

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, 2004. 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.
 

ANADIGICS, Inc.
                      
Consolidated Statements of Operations
                      
(Unaudited)
                      
(Amounts in thousands, except share and per share amounts)
                      
                                 
 
 Three months ended 
          
Nine months ended
 
    
October 1, 2005
    
July 2, 2005
    
October 2, 2004
    
October 1, 2005
    
October 2, 2004
  
                                 
                                 
Net sales
 
$
29,264
  
$
23,943
  
$
25,053
  
$
74,980
  
$
68,935
  
Cost of sales
    
22,691
   
19,511
   
19,811
   
61,454
   
58,193
 
Gross profit
    
6,573
   
4,432
   
5,242
   
13,526
   
10,742
 
Research and development expenses
    
7,491
   
7,374
   
7,884
   
22,727
   
25,652
 
Selling and administrative expenses
    
5,234
   
5,506
   
5,482
   
16,292
   
17,371
 
Restructuring and other charges
    
-
   
-
   
-
   
(120
)
  
-
 
Operating loss
    
(6,152
)
  
(8,448
)
  
(8,124
)
  
(25,373
)
  
(32,281
)
Interest income
    
607
   
599
   
469
   
1,783
   
1,679
 
Interest expense
    
(1,250
)
  
(1,249
)
  
(955
)
  
(3,748
)
  
(2,835
)
Gain on notes repurchase
    
-
   
-
   
327
   
-
   
327
 
Other income (expense)
    
15
   
9
   
(36
)
  
18
   
308
 
Net loss
  
$
(6,780
)
$
(9,089
)
$
(8,319
)
$
(27,320
)
$
(32,802
)
                                 
Basic and diluted loss per share
                                
Net loss
 
$
(0.20
)
$
(0.27
)
$
(0.25
)
$
(0.81
)
$
(1.02
)
                                 
Weighted average common
                                
shares outstanding
    
34,067,204
    
34,057,232
    
32,770,442
    
33,871,838
    
32,251,721
  
                                 
 

ANADIGICS, Inc.
          
Condensed Consolidated Balance Sheets
          
(Amounts in thousands)
            
             
 
 October 1, 2005 
    
December 31, 2004
  
Assets
    
(unaudited
)
      
               
Current assets:
              
Cash and cash equivalents
  
$
10,727
  
$
11,171
  
Marketable securities
    
71,829
   
63,615
 
Accounts receivable
    
17,816
   
10,770
 
Inventory
    
13,073
   
14,436
 
Prepaid expenses and other current assets
    
2,674
   
3,073
 
Total current assets
    
116,119
   
103,065
 
               
Marketable securities
   
4,614
   
29,265
 
               
Plant and equipment
    
35,012
   
43,038
 
               
Goodwill and other intangibles, net of amortization
    
6,079
   
6,297
 
Other assets
    
3,188
   
4,230
 
   
$
165,012
  
$
185,895
  
               
Liabilities and stockholders’ equity
              
               
Current liabilities:
              
Accounts payable
  
$
14,170
  
$
8,021
  
Accrued liabilities
    
3,681
   
4,783
 
Accrued restructuring costs
    
52
   
726
 
Capital lease obligations
    
-
    
18
 
Total current liabilities
    
17,903
   
13,548
 
               
Other long-term liabilities
    
3,132
   
3,032
 
Long-term debt
    
84,700
   
84,700
 
               
Total Stockholders’ equity
    
59,277
   
84,615
 
   
$
165,012
  
$
185,895
  
               
The condensed balance sheets at December 31, 2004 has been derived from the audited
              
financial statements at such date but does not include all the information and footnotes
              
required by generally accepted accounting principles for complete financial statements.