EX-99.1 2 anadq210earnings.htm Q210 PRESS RELEASE anadq210earnings.htm
Exhibit 99.1
ANADIGICS ANNOUNCES SECOND QUARTER 2010 RESULTS

Quarterly Net Sales of $51.7 Million; up 18.7% Sequentially
Achieved Earnings on both GAAP and Non-GAAP basis of $0.01 and $0.02 per diluted Share, respectively
Guides Third Quarter Net Sales to 11% sequential growth; GAAP and Non-GAAP EPS of breakeven and $0.04, respectively

WARREN, N.J., July 29, 2010—ANADIGICS, Inc. (Nasdaq: ANAD), a leading provider of semiconductor solutions in the broadband wireless and wireline communications markets, reported second quarter 2010 net sales of $51.7 million, a sequential increase of 18.7% and an increase of 64.2% above the second quarter of 2009.  For the six months ended July 3, 2010, net sales were $95.2 million, up approximately 54% over the prior year.   As of July 3, 2010, cash, cash equivalents and short and long-term marketable securities totaled $91.8 million.

GAAP net income for the second quarter of 2010 was $0.8 million, or $0.01 per share.   Excluding non-cash stock compensation expense of $2.3 million, recoveries in auction rate securities of $0.3 million and a recovery on the sale of a building in Kunshan, China of $1.7 million, Non-GAAP net income was $1.1 million, or $0.02 per share.  Non–GAAP income improved sequentially by $0.06 per share.

“The results of our second quarter reflect the continued execution of our business initiatives highlighting increasing revenue, operational excellence, expanded market share and achieving profitability,” commented Mario Rivas, President and Chief Executive Officer.  “Our participation in a fast-growing 3G & 4G wireless market, which will require increasing power amplifier content over time, coupled with our strong product breadth provides for continued opportunities to build our revenue, increase our market share and improve our financial results.”

Outlook for the Third Quarter 2010
 
Net sales for the third quarter of 2010 are expected to increase approximately 11% sequentially to approximately $57.5 million from the second quarter revenue of $51.7 million.   GAAP EPS for the third quarter is expected to approximate breakeven.  Non-GAAP net income for the third quarter is expected to be approximately $0.04 per share, excluding non-cash stock compensation expense.  The diluted weighted average outstanding shares estimated for the third quarter approximates 67.5 million.
 
The statements regarding the Company’s anticipated future performance are forward looking and actual results may differ materially. Please see safe harbor statement at the end of this press release.

This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP net income or loss and non-GAAP 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, for planning purposes, when publicly providing our business outlook and to facilitate period-to-period comparisons. 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 stock-based compensation, restructuring and impairment charges and recoveries, auction rate securities charges and recoveries and non-comparative charges in the first half of 2009 resulting from inventory reserves associated with reduced demand. Non-GAAP measures are used by some investors when assessing the ongoing operating and financial performance of our Company. These financial measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Management acknowledges that stock-based compensation is a recurring cost and is an important part of our employee’s compensation and impacts their performance. However the expense is non-cash in nature and there are various valuation methodologies and assumptions used in determining stock-based compensation that may be unrelated to operations, such as volatility and current interest rates. The presentation of the additional information should not be considered a substitute for net income or loss or income or loss per share prepared in accordance with GAAP.
 
Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP measures as compared to the most directly comparable GAAP financial measures are (i) they may not be comparable to similarly titled measures used by other companies in ANADIGICS industry, and (ii) they exclude financial information that some may consider important in evaluating our performance. We compensate for these limitations by providing reconciliations of reported net income or loss and income or loss per share to non-GAAP net income or net loss and non-GAAP income or loss per share, respectively, within 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 www.anadigics.com/investors. 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 800-642-1687 conference ID 86002971 (available until August 5, 2010).

Recent Highlights

July 13, 2010 - ANADIGICS Unveils New Range of Power Amplifiers for Booming 3G Mobile Device Market
June 1, 2010 - ANADIGICS Showcases 4G Technology Solutions at WiMAX Taipei 2010
May 19, 2010 - ANADIGICS Unveils High Linearity Power Amplifiers for Femtocell Markets
April 22, 2010 - ANADIGICS Celebrates 25 Years of Technology Innovation

 # # #

About ANADIGICS, Inc.

ANADIGICS, Inc. (Nasdaq: ANAD - News) is a leading provider of semiconductor solutions in the 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, 2009, and those discussed elsewhere herein.

 
ANADIGICS, INC.
                       
Consolidated Statements of Operations
                       
 (Amounts in thousands, except per share amounts, unaudited)
 
               
                         
   
Three months ended
   
Six months ended
 
   
July 3, 2010
   
July 4, 2009
   
July 3, 2010
   
July 4, 2009
 
                         
                         
Net sales
  $ 51,666     $ 31,463     $ 95,197     $ 61,958  
Cost of sales
    33,853       28,703       63,900       57,948  
Gross profit
    17,813       2,760       31,297       4,010  
Research and development expenses
    12,214       10,376       23,995       22,001  
Selling and administrative expenses
    6,892       6,338       13,884       13,770  
Restructuring and impairment (recovery) charges
    (1,717 )     -       (1,717 )     2,598  
Operating income (loss)
    424       (13,954 )     (4,865 )     (34,359 )
Interest income
    93       287       186       846  
Interest expense
    (43 )     (591 )     (95 )     (1,182 )
Other income (expense)
    317       -       377       (1,545 )
Net income (loss)
  $ 791     $ (14,258 )   $ (4,397 )   $ (36,240 )
                                 
Net earnings (loss) per share
                               
Basic
  $ 0.01     $ (0.23 )   $ (0.07 )   $ (0.58 )
Diluted
  $ 0.01     $ (0.23 )   $ (0.07 )   $ (0.58 )
                                 
Basic shares outstanding
    64,902       62,209       64,553       61,976  
Basic & dilutive shares outstanding
    67,106       62,209       64,553       61,976  
                                 
Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures
                 
                                 
GAAP net income (loss)
  $ 791     $ (14,258 )   $ (4,397 )   $ (36,240 )
Stock compensation expense
                               
     Cost of sales
    589       617       1,162       1,342  
     Research and development
    832       1,117       1,683       2,548  
     Selling and administrative
    883       1,243       2,016       2,688  
Cost of sales adjustment (1)
    -       -       -       1,410  
Auction rate securities impairment / (recovery)
    (303 )     -       (341 )     1,565  
Restructuring and impairment (recovery) charges
    (1,717 )     -       (1,717 )     2,598  
Non-GAAP net income (loss)
  $ 1,075     $ (11,281 )   $ (1,594 )   $ (24,089 )
                                 
Non-GAAP earnings (loss) per share *
                               
Basic
  $ 0.02     $ (0.18 )   $ (0.02 )   $ (0.39 )
Diluted
  $ 0.02     $ (0.18 )   $ (0.02 )   $ (0.39 )
                                 
(*) Calculated using related GAAP shares outstanding
                         
                                 
(1) Six months ended July 4, 2009 includes $1,410 inventory reserves charge for products with reduced demand recorded in first quarter of 2009.
 

 
 

 

ANADIGICS, INC.
           
Condensed Consolidated Balance Sheets
           
(Amounts in thousands)
           
             
   
July 3, 2010
   
December 31, 2009
 
Assets
 
Unaudited
       
             
Current assets:
           
Cash and cash equivalents
  $ 83,045     $ 83,172  
Accounts receivable
    29,714       20,013  
Inventory
    19,808       18,250  
Prepaid expenses and other current assets
    3,721       2,503  
Total current assets
    136,288       123,938  
                 
Marketable securities
    8,752       9,354  
Plant and equipment, net
    74,111       80,884  
Other assets
    247       276  
    $ 219,398     $ 214,452  
                 
Liabilities and stockholders’ equity
               
                 
Current liabilities:
               
Accounts payable
  $ 15,235     $ 11,287  
Accrued liabilities
    11,374       10,208  
Accrued restructuring costs
    -       55  
Total current liabilities
    26,609       21,550  
                 
Other long-term liabilities
    2,821       3,844  
                 
Stockholders’ equity
    189,968       189,058  
    $ 219,398     $ 214,452  
                 
* The condensed balance sheet at December 31, 2009 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.