x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 29, 2013.
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Or
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o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO ____________.
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Commission File No. 0-25662
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ANADIGICS, Inc.
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(Exact name of registrant as specified in its charter)
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Delaware
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22-2582106
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(State or other jurisdiction of incorporation or organization)
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(I.R.S. Employer Identification No.)
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141 Mt. Bethel Road, Warren, New Jersey
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07059
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(Address of principal executive offices)
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(Zip Code)
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(908) 668-5000
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(Registrant's telephone number, including area code)
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PART I
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Financial Information
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Item 1.
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3 | |
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3 | |
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4 | |
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5 | |
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6 | |
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Item 2.
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15 | |
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Item 3.
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18 | |
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Item 4.
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18 | |
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PART II.
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Other Information
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Item 1.
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19 | |
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Item 6.
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19 | |
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20 |
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June 29, 2013
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December 31, 2012
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||||||
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(Unaudited)
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(Note 1)
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||||||
ASSETS
|
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||||||
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|
||||||
Current assets:
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|
||||||
Cash and cash equivalents
|
$
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29,024
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$
|
24,949
|
||||
Short-term marketable securities
|
6,812
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17,750
|
||||||
Accounts receivable, net
|
17,740
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12,233
|
||||||
Inventories
|
19,504
|
18,840
|
||||||
Prepaid expenses and other current assets
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4,605
|
3,031
|
||||||
Total current assets
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77,685
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76,803
|
||||||
|
||||||||
Marketable securities
|
5,177
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8,811
|
||||||
Plant and equipment:
|
||||||||
Equipment and furniture
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202,858
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200,873
|
||||||
Leasehold improvements
|
46,810
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46,810
|
||||||
Projects in process
|
3,339
|
1,964
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||||||
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253,007
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249,647
|
||||||
Less accumulated depreciation and amortization
|
215,844
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208,599
|
||||||
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37,163
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41,048
|
||||||
Other assets
|
210
|
219
|
||||||
|
||||||||
Total assets
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$
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120,235
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$
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126,881
|
||||
|
||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
|
||||||||
Current liabilities:
|
||||||||
Accounts payable
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$
|
15,729
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$
|
14,099
|
||||
Accrued liabilities
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5,736
|
4,345
|
||||||
Accrued restructuring costs
|
483
|
395
|
||||||
Total current liabilities
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21,948
|
18,839
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||||||
|
||||||||
Other long-term liabilities
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1,811
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2,017
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||||||
|
||||||||
Commitments and contingencies
|
||||||||
Stockholders’ equity:
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||||||||
Common stock, $0.01 par value, 144,000 shares authorized, 83,537 issued at June 29, 2013 and 71,853 issued at December 31, 2012
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835
|
719
|
||||||
Additional paid-in capital
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634,520
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611,279
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||||||
Accumulated deficit
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(540,584
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)
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(507,766
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)
|
||||
Accumulated other comprehensive income
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1,964
|
2,052
|
||||||
Treasury stock at cost: 115 shares
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(259
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)
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(259
|
)
|
||||
Total stockholders’ equity
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96,476
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106,025
|
||||||
|
||||||||
Total liabilities and stockholders’ equity
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$
|
120,235
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$
|
126,881
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Three months ended
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Six months ended
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||||||||||||||
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June 29,2013
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June 30,2012
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June 29,2013
|
June 30,2012
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||||||||||||
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(unaudited)
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(unaudited)
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(unaudited)
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(unaudited)
|
||||||||||||
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|
||||||||||||
Net sales
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$
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34,565
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$
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25,099
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$
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60,945
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$
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53,525
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||||||||
Cost of sales
|
34,269
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27,296
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61,370
|
54,043
|
||||||||||||
Gross profit (loss)
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296
|
(2,197
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)
|
(425
|
)
|
(518
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)
|
|||||||||
Research and development expenses
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9,433
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11,310
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19,713
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22,924
|
||||||||||||
Selling and administrative expenses
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6,215
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6,321
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12,457
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13,176
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||||||||||||
Restructuring charges
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-
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1,239
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1,915
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1,733
|
||||||||||||
|
||||||||||||||||
Operating loss
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(15,352
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)
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(21,067
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)
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(34,510
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)
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(38,351
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)
|
||||||||
Interest income
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65
|
133
|
158
|
283
|
||||||||||||
Interest expense
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(20
|
)
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-
|
(20
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)
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-
|
||||||||||
Other income, net
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1,508
|
1
|
1,554
|
1,315
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||||||||||||
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||||||||||||||||
Net loss
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$
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(13,799
|
)
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$
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(20,933
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)
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$
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(32,818
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)
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$
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(36,753
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)
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||||
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||||||||||||||||
Basic and diluted loss per share
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$
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(0.17
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)
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$
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(0.30
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)
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$
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(0.42
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)
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$
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(0.52
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)
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||||
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||||||||||||||||
Weighted average common shares outstanding used in computing loss per share
|
||||||||||||||||
Basic and diluted
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83,042
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70,747
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78,100
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70,208
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Three months ended
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Six months ended
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||||||||||||||
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June 29,2013
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June 30,2012
|
June 29,2013
|
June 30,2012
|
||||||||||||
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(unaudited)
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(unaudited)
|
(unaudited)
|
(unaudited)
|
||||||||||||
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|
||||||||||||
Net loss
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$
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(13,799
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)
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$
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(20,933
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)
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$
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(32,818
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)
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$
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(36,753
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)
|
||||
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||||||||||||||||
Other comprehensive income
|
||||||||||||||||
Unrealized gain (loss) on marketable securities
|
242
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(85
|
)
|
1,360
|
1,588
|
|||||||||||
Foreign currency translation adjustment
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3
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-
|
3
|
5
|
||||||||||||
|
||||||||||||||||
Reclassification adjustment:
|
||||||||||||||||
Net recognized gain on marketable securities previously included in other comprehensive income
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(1,422
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)
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(30
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)
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(1,451
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)
|
(1,336
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)
|
||||||||
Comprehensive loss
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$
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(14,976
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)
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$
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(21,048
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)
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$
|
(32,906
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)
|
$
|
(36,496
|
)
|
|
Six months ended
|
|||||||
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June 29, 2013
|
June 30, 2012
|
||||||
|
(unaudited)
|
(unaudited)
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
|
|
||||||
Net loss
|
$
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(32,818
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)
|
$
|
(36,753
|
)
|
||
Adjustments to reconcile net loss to net cash used in operating activities:
|
||||||||
Depreciation
|
7,499
|
8,463
|
||||||
Stock based compensation
|
3,557
|
3,587
|
||||||
Amortization of premium on marketable securities
|
38
|
360
|
||||||
Marketable securities recovery and accretion
|
(1,451
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)
|
(1,336
|
)
|
||||
Gain on disposal of equipment
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(161
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)
|
(22
|
)
|
||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
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(5,507
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)
|
4,540
|
|||||
Inventories
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(664
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)
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2,123
|
|||||
Prepaid expenses and other assets
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(1,565
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)
|
(1,032
|
)
|
||||
Accounts payable
|
1,630
|
229
|
||||||
Accrued liabilities and other liabilities
|
1,276
|
(1,688
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)
|
|||||
|
||||||||
Net cash used in operating activities
|
(28,166
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)
|
(21,529
|
)
|
||||
|
||||||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Purchases of plant and equipment
|
(3,454
|
)
|
(2,144
|
)
|
||||
Proceeds from sale of equipment
|
1
|
22
|
||||||
Purchases of marketable securities
|
(8,130
|
)
|
(27,014
|
)
|
||||
Proceeds from sales and redemptions of marketable securities
|
24,024
|
33,217
|
||||||
|
||||||||
Net cash provided by investing activities
|
12,441
|
4,081
|
||||||
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Issuance of common stock
|
19,800
|
1,916
|
||||||
|
||||||||
Net cash provided by financing activities
|
19,800
|
1,916
|
||||||
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
4,075
|
(15,532
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
24,949
|
32,695
|
||||||
|
||||||||
Cash and cash equivalents at end of period
|
$
|
29,024
|
$
|
17,163
|
1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
|
Six months ended
|
|||||||
|
June 29, 2013
|
June 30, 2012
|
||||||
|
|
|
||||||
Beginning balance
|
$
|
770
|
$
|
430
|
||||
Additions charged to costs and expenses
|
446
|
700
|
||||||
Adjustment
|
(169
|
)
|
-
|
|||||
Claims processed
|
(615
|
)
|
(710
|
)
|
||||
Ending balance
|
$
|
432
|
$
|
420
|
2. | RESTRUCTURING |
|
Accrued
Restructuring
Costs
|
|||
December 31, 2011 balance
|
$
|
-
|
||
Restructuring expense
|
2,338
|
|||
Payments
|
(1,943
|
)
|
||
December 31, 2012 balance
|
$
|
395
|
||
Restructuring expense
|
1,915
|
|||
Payments
|
(1,827
|
)
|
||
June 29, 2013 balance
|
$
|
483
|
3. | FAIR VALUE AND MARKETABLE SECURITIES |
Level 1 | Unadjusted quoted prices in active markets for identical assets or liabilities |
Level 2 | Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability |
Level 3 | Unobservable inputs for the asset or liability |
|
Fair Value Measurements at Reporting Date
Using
|
|||||||||||||||||||
Security Type
|
Amortized
Cost
Basis
(1)
|
Fair
Value
|
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||||||||
Fixed Income Securities (2)
|
$
|
10,235
|
$
|
10,240
|
$
|
-
|
$
|
10,240
|
$
|
-
|
||||||||||
U.S. Government Agency debt security (2)
|
7,508
|
7,510
|
7,510
|
-
|
-
|
|||||||||||||||
Former-auction corporate debt security (3)
|
1,740
|
3,078
|
-
|
3,078
|
-
|
|||||||||||||||
Auction Rate Securities
|
||||||||||||||||||||
Preferred Equity
|
2,404
|
4,081
|
-
|
2,513
|
1,568
|
|||||||||||||||
State and Municipal Debt (3)
|
1,394
|
1,652
|
-
|
1,652
|
-
|
|||||||||||||||
Total at December 31, 2012
|
$
|
23,281
|
$
|
26,561
|
$
|
7,510
|
$
|
17,483
|
$
|
1,568
|
||||||||||
|
||||||||||||||||||||
Fixed Income Securities (2)
|
$
|
6,813
|
$
|
6,812
|
$
|
-
|
$
|
6,812
|
$
|
-
|
||||||||||
Former-auction corporate debt security (3)
|
1,770
|
3,047
|
-
|
3,047
|
-
|
|||||||||||||||
Auction Rate Securities
|
||||||||||||||||||||
Preferred Equity
|
0
|
450
|
-
|
-
|
450
|
|||||||||||||||
State and Municipal Debt (3)
|
1,417
|
1,680
|
-
|
1,680
|
-
|
|||||||||||||||
Total at June 29, 2013
|
$
|
10,000
|
$
|
11,989
|
$
|
-
|
$
|
11,539
|
$
|
450
|
(1) | Difference between amortized cost basis and fair value represents gross unrealized gain or loss. |
(2) | Available for sale debt securities with contractual maturities of one year or less. |
(3) | Available for sale debt securities with contractual maturities in excess of 10 years. |
($ in 000’s)
|
Fair Value
Measurements Using Significant
Unobservable
Inputs (Level 3)
Six months ended
June 29, 2013
|
|||
|
Preferred Equity
Securities (a)
|
|||
Balance at January 1, 2013
|
$
|
1,568
|
||
Total gains or losses realized/unrealized
|
||||
Included in earnings (loss)
|
||||
- quarter ended March 30, 2013
|
-
|
|||
- quarter ended June 29, 2013
|
872
|
|||
Included in other comprehensive income(loss)
|
||||
- quarter ended March 30, 2013
|
477
|
|||
- quarter ended June 29, 2013
|
(467
|
)
|
||
Purchases
|
-
|
|||
Redemptions, and settlements
|
||||
- quarter ended March 30, 2013
|
-
|
|||
- quarter ended June 29, 2013
|
(2,000
|
)
|
||
Transfers in and/or out of Level 3
|
-
|
|||
Balance at June 29, 2013
|
$
|
450
|
||
|
||||
Amount of total gains or losses for the period included in earnings(loss) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date
|
-
|
|||
Securities held at June 29,2013:
|
||||
Face value
|
$
|
1,125
|
||
Financial ratings
|
NR
|
|||
Weighted average interest rate
|
0
|
%
|
||
Maturity date
|
N/
|
A
|
(a)
|
Preferred securities issued by subsidiaries of two publicly-held debt default insurers. During the second quarter of 2013, one of these securities redeemed at $2,000 par, resulting in an $872 realized gain recorded to Other income, net.
|
($ in 000’s)
|
Fair Value Measurements Using Significant Unobservable Inputs
(Level 3)
Six months ended June 30, 2012
|
|||||||||||
|
Corporate
Debt
Security
(a)
|
Preferred Equity Securities
(b)
|
Total
|
|||||||||
Balance at January 1, 2012
|
$
|
1,215
|
$
|
628
|
$
|
1,843
|
||||||
Total gains or losses realized/unrealized
|
||||||||||||
Included in earnings (loss)
|
||||||||||||
- quarter ended March 31, 2012
|
1,250
|
-
|
1,250
|
|||||||||
- quarter ended June 30, 2012
|
-
|
-
|
-
|
|||||||||
Included in other comprehensive income(loss)
|
||||||||||||
- quarter ended March 31, 2012
|
(452
|
)
|
795
|
343
|
||||||||
- quarter ended June 30, 2012
|
-
|
108
|
108
|
|||||||||
Purchases, redemptions, and settlements:
|
||||||||||||
Purchases
|
-
|
-
|
-
|
|||||||||
Redemptions
|
||||||||||||
- quarter ended March 31, 2012
|
(2,013
|
)
|
-
|
(2,013
|
)
|
|||||||
- quarter ended June 30, 2012
|
-
|
-
|
-
|
|||||||||
Settlements
|
-
|
-
|
-
|
|||||||||
Transfers in and/or out of Level 3
|
-
|
-
|
-
|
|||||||||
|
||||||||||||
Balance at June 30, 2012
|
$
|
-
|
$
|
1,531
|
$
|
1,531
|
||||||
|
||||||||||||
Amount of total gains or losses for the period included in earnings(loss) attributable to the change in unrealized gains or losses relating to assets still held at the reporting date
|
-
|
-
|
-
|
|||||||||
Securities held at June 30, 2012:
|
||||||||||||
Face value
|
$
|
-
|
$
|
3,125
|
$
|
3,125
|
||||||
Financial ratings
|
A2 to NR
|
|||||||||||
Weighted average interest rate (*)
|
1.9
|
%
|
1.9
|
%
|
||||||||
Maturity date
|
N/
|
A
|
4. | INVENTORIES |
|
June 29,
2013
|
December 31, 2012
|
||||||
|
||||||||
Raw materials
|
$
|
5,816
|
$
|
5,108
|
||||
Work in process
|
10,197
|
9,781
|
||||||
Finished goods
|
3,491
|
3,951
|
||||||
Total
|
$
|
19,504
|
$
|
18,840
|
5. | STOCKHOLDERS’ EQUITY |
6. | STOCK BASED COMPENSATION |
§ | The 1995 Long-Term Incentive and Share Award Plan for Officers and Directors (terminated February 28, 2005) (1995 Plan); |
§ | The 1997 Long Term Incentive and Share Award Plan (terminated February 28, 2005) (1997 Plan); |
§ | The 2005 Long Term Incentive and Share Award Plan (2005 Plan, collectively with the 1995 Plan and the 1997 Plan, the Plans); and |
§ | The Employee Stock Purchase Plan (ESP Plan). |
|
Three months ended
|
Six months ended
|
||||||||||||||
|
June 29, 2013
|
June 30, 2012
|
June 29, 2013
|
June 30, 2012
|
||||||||||||
|
|
|
|
|
||||||||||||
Amortization of restricted stock
|
$
|
2,037
|
$
|
1,487
|
$
|
3,267
|
$
|
2,909
|
||||||||
Amortization of ESP Plan
|
120
|
135
|
270
|
270
|
||||||||||||
Amortization of stock option awards
|
(101
|
)
|
190
|
20
|
408
|
|||||||||||
Total stock based compensation
|
$
|
2,056
|
$
|
1,812
|
$
|
3,557
|
$
|
3,587
|
||||||||
|
||||||||||||||||
By Financial Statement line item
|
||||||||||||||||
Cost of sales
|
$
|
413
|
$
|
312
|
$
|
592
|
$
|
529
|
||||||||
Research and development expenses
|
695
|
574
|
1,040
|
986
|
||||||||||||
Selling and administrative expenses
|
948
|
910
|
1,996
|
2,007
|
||||||||||||
Restructuring charge
|
-
|
16
|
(71
|
)
|
65
|
|
Restricted Stock Units
|
Stock Options
|
||||||||||||||
|
Units
|
WA price/
unit
|
Issuable
upon
exercise
|
WA exercise
price
|
||||||||||||
Outstanding at January 1, 2012
|
1,970
|
$
|
5.52
|
4,275
|
$
|
4.32
|
||||||||||
Granted
|
661
|
2.32
|
13
|
1.97
|
||||||||||||
Shares vested/options exercised
|
(1,102
|
)
|
4.69
|
(950
|
)
|
2.02
|
||||||||||
Forfeited/expired (1)
|
(99
|
)
|
6.21
|
(843
|
)
|
5.21
|
||||||||||
Balance at December 31, 2012
|
1,430
|
$
|
4.63
|
2,495
|
$
|
4.89
|
||||||||||
Granted (2)
|
2,891
|
2.05
|
9
|
2.31
|
||||||||||||
Shares vested/options exercised
|
(926
|
)
|
4.25
|
(54
|
)
|
1.93
|
||||||||||
Forfeited/expired-rescinded (3, 4)
|
(117
|
)
|
3.38
|
(429
|
)
|
3.75
|
||||||||||
Balance at June 29, 2013
|
3,278
|
$
|
2.50
|
2,021
|
$
|
5.20
|
(1) | Year 2012 stock options forfeited include 83 performance-based stock option shares. |
(2) | Restricted stock units granted in the six months ended June 29, 2013 include 550 performance-based restricted stock units. |
(3) | Forfeitures in the six months ended June 29, 2013 include 73 performance-based restricted stock units and 42 performance-based stock option shares. |
(4) | In the second quarter of 2013, 125 time-based and 83 (125 at maximum performance achievement) performance-based stock options were rescinded with the consent of and without payment to the CEO due to the fact that the original grants with respect to which these options were a part of exceeded the sub-limits of the applicable plan by the number of shares as to which the options were rescinded. |
|
As of June 29, 2013
|
|||
|
||||
Unrecognized stock based compensation cost
|
||||
Option plans
|
$
|
220
|
||
Restricted stock
|
$
|
4,451
|
||
Weighted average remaining recognition period
|
||||
Option plans
|
1.2 years
|
|||
Restricted stock
|
1.6 years
|
Range of exercise prices
|
Outstanding Options at June
29, 2013
|
Weighted
average
remaining contractual
life
|
Weighted
average
exercise
price
|
Exercisable
at June 29,
2013
|
Weighted
average
exercise
price
|
|||||||||||||||||
$
|
1.23 - $1.93
|
669
|
4.2
|
$
|
1.92
|
659
|
$
|
1.93
|
||||||||||||||
$
|
2.04 - $3.24
|
322
|
7.8
|
$
|
3.19
|
144
|
$
|
3.18
|
||||||||||||||
$
|
3.30 - $7.27
|
483
|
1.7
|
$
|
6.34
|
479
|
$
|
6.34
|
||||||||||||||
$
|
8.79 - $18.98
|
547
|
2.9
|
$
|
9.38
|
547
|
$
|
9.38
|
|
Six months ended
|
|||||||
|
June 29, 2013
|
June 30, 2012
|
||||||
Stock option awards:
|
|
|
||||||
Risk-free interest rate
|
0.8
|
%
|
1.0
|
%
|
||||
Expected volatility
|
72
|
%
|
70
|
%
|
||||
Average expected term (in years)
|
5.0
|
5.0
|
||||||
Expected dividend yield
|
0.0
|
%
|
0.0
|
%
|
||||
Weighted average fair value of options granted
|
$
|
1.41
|
$
|
1.45
|
||||
|
||||||||
ESP Plan:
|
||||||||
Risk-free interest rate
|
0.2
|
%
|
0.2
|
%
|
||||
Expected volatility
|
65
|
%
|
66
|
%
|
||||
Average expected term (in years)
|
1.0
|
1.0
|
||||||
Expected dividend yield
|
0.0
|
%
|
0.0
|
%
|
||||
Weighted average fair value of purchase option
|
$
|
0.78
|
$
|
0.65
|
7. | LOSS PER SHARE |
|
Three months ended
|
Six months ended
|
||||||||||||||
|
June 29, 2013
|
June 30, 2012
|
June 29, 2013
|
June 30, 2012
|
||||||||||||
Weighted average common shares for basic loss per share
|
83,042
|
70,747
|
78,100
|
70,208
|
||||||||||||
|
||||||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Stock options (*)
|
-
|
-
|
-
|
-
|
||||||||||||
Unvested restricted shares (*)
|
-
|
-
|
-
|
-
|
||||||||||||
|
||||||||||||||||
Adjusted weighted average shares for diluted loss per share
|
83,042
|
70,747
|
78,100
|
70,208
|
* | Incremental shares from restricted shares and stock options are computed using the treasury stock method. |
|
Three months ended
|
Six months ended
|
||||||||||||||
|
June 29, 2013
|
June 30, 2012
|
June 29, 2013
|
June 30, 2012
|
||||||||||||
|
||||||||||||||||
Stock options
|
2,021
|
3,056
|
2,021
|
3,056
|
||||||||||||
Unvested restricted shares and units
|
3,278
|
1,726
|
3,278
|
1,726
|
8. | ACCUMULATED OTHER COMPREHENSIVE INCOME |
|
Net Unrealized Gain (Loss) on Marketable Securities
|
Foreign Currency Translation
|
Total
|
|||||||||
Balance at January 1, 2013
|
$
|
2,055
|
$
|
(3
|
)
|
$
|
2,052
|
|||||
Other comprehensive income before reclassifications
|
1,118
|
-
|
1,118
|
|||||||||
Amounts reclassified from accumulated other comprehensive income *
|
(29
|
)
|
-
|
(29
|
)
|
|||||||
Net current period other comprehensive income
|
1,089
|
-
|
1,089
|
|||||||||
Balance at March 30, 2013
|
$
|
3,144
|
$
|
(3
|
)
|
$
|
3,141
|
|||||
Other comprehensive income before reclassifications
|
242
|
-
|
242
|
|||||||||
Amounts reclassified from accumulated other comprehensive income *
|
(1,422
|
)
|
3
|
(1,419
|
)
|
|||||||
Net current period other comprehensive income
|
(1,180
|
)
|
3
|
(1,177
|
)
|
|||||||
Balance at June 29, 2013
|
$
|
1,964
|
$
|
-
|
$
|
1,964
|
9. | LINE OF CREDIT |
|
Three months ended
|
Six months ended
|
||||||||||||||
|
June 29, 2013
|
June 30, 2012
|
June 29, 2013
|
June 30, 2012
|
||||||||||||
|
||||||||||||||||
Net sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||||||
Cost of sales
|
99.1
|
%
|
108.8
|
%
|
100.7
|
%
|
101.0
|
%
|
||||||||
|
||||||||||||||||
Gross margin
|
0.9
|
%
|
(8.8
|
)%
|
(0.7
|
)%
|
(1.0
|
)%
|
||||||||
Research and development expenses
|
27.3
|
%
|
45.0
|
%
|
32.4
|
%
|
42.8
|
%
|
||||||||
Selling and administrative expenses
|
18.0
|
%
|
25.2
|
%
|
20.4
|
%
|
24.6
|
%
|
||||||||
Restructuring charges
|
-
|
4.9
|
%
|
3.1
|
%
|
3.2
|
%
|
|||||||||
|
||||||||||||||||
Operating loss
|
(44.4
|
)%
|
(83.9
|
)%
|
(56.6
|
)%
|
(71.6
|
)%
|
||||||||
Interest income
|
0.2
|
%
|
0.5
|
%
|
0.3
|
%
|
0.5
|
%
|
||||||||
Interest expense
|
(0.1
|
)%
|
-
|
-
|
-
|
|||||||||||
Other income, net
|
4.4
|
%
|
-
|
2.5
|
%
|
2.4
|
||||||||||
|
||||||||||||||||
Net loss
|
(39.9
|
)%
|
(83.4
|
)%
|
(53.8
|
)%
|
(68.7
|
)%
|
|
31.1 Rule 13a-14(a)/15d-14(a) Certification of Ronald Michels, Chairman and Chief Executive Officer of ANADIGICS, Inc.
|
|
|
|
31.2 Rule 13a-14(a)/15d-14(a) Certification of Terrence G. Gallagher, Vice President and Chief Financial Officer of ANADIGICS, Inc.
|
|
|
|
32.1 Section 1350 Certification of Ronald Michels, Chairman and Chief Executive Officer of ANADIGICS, Inc.
|
|
|
|
32.2 Section 1350 Certification of Terrence G. Gallagher, Vice President and Chief Financial Officer of ANADIGICS, Inc.
|
|
By:
|
/s/ Terrence G. Gallagher
|
|
|
|
Terrence G. Gallagher
|
|
|
|
Vice President and Chief Financial Officer
|
1. | I have reviewed this quarterly report on Form 10-Q of ANADIGICS, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
|
By:
|
/s/ Ronald Michels
|
|
Ronald Michels
|
|||
|
|
Chairman and Chief Executive Officer
|
1. | I have reviewed this quarterly report on Form 10-Q of ANADIGICS, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
By:
|
/s/ Terrence G. Gallagher
|
||
|
Terrence G. Gallagher
|
||
|
Vice President and Chief Financial Officer
|
By:
|
/s/ Ronald Michels
|
||
|
Ronald Michels
|
||
|
Chairman and Chief Executive Officer
|
By:
|
/s/ Terrence G. Gallagher
|
||
|
Terrence G. Gallagher
|
||
|
Vice President and Chief Financial Officer
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product warranty reserve | Changes in the Company’s product warranty reserve are as follows:
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) [Abstract] | ||||
Net sales | $ 34,565 | $ 25,099 | $ 60,945 | $ 53,525 |
Cost of sales | 34,269 | 27,296 | 61,370 | 54,043 |
Gross profit (loss) | 296 | (2,197) | (425) | (518) |
Research and development expenses | 9,433 | 11,310 | 19,713 | 22,924 |
Selling and administrative expenses | 6,215 | 6,321 | 12,457 | 13,176 |
Restructuring charge | 0 | 1,239 | 1,915 | 1,733 |
Operating loss | (15,352) | (21,067) | (34,510) | (38,351) |
Interest income | 65 | 133 | 158 | 283 |
Interest expense | (20) | 0 | (20) | 0 |
Other income, net | 1,508 | 1 | 1,554 | 1,315 |
Net loss | $ (13,799) | $ (20,933) | $ (32,818) | $ (36,753) |
Basic and diluted loss per share (in dollars per share) | $ (0.17) | $ (0.30) | $ (0.42) | $ (0.52) |
Weighted average common shares outstanding used in computing loss per share | ||||
Basic and diluted (in shares) | 83,042 | 70,747 | 78,100 | 70,208 |
INVENTORIES
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES |
Inventories are stated at the lower of cost (first-in, first-out method) or market. Inventories consist of the following:
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | ||
Unrecognized tax benefits, interest or penalties accrued | $ 0 | |
Changes in product warranty reserve [Roll Forward] | ||
Beginning balance | 770 | 430 |
Additions charged to costs and expenses | 277 | 420 |
Adjustment | (169) | 0 |
Claims processed | (482) | (426) |
Ending balance | $ 396 | $ 424 |
RESTRUCTURING (Tables)
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
|||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Activity and liability balances related to the restructurings | Activity and liability balances related to the restructurings were as follows:
|
FAIR VALUE AND MARKETABLE SECURITIES (Details) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
Minimum [Member]
|
Jun. 30, 2012
Maximum [Member]
|
Jun. 29, 2013
Recurring [Member]
Amortized Cost Basis [Member]
|
Dec. 31, 2012
Recurring [Member]
Amortized Cost Basis [Member]
|
Jun. 29, 2013
Recurring [Member]
Amortized Cost Basis [Member]
Fixed Income Securities [Member]
|
Dec. 31, 2012
Recurring [Member]
Amortized Cost Basis [Member]
Fixed Income Securities [Member]
|
Dec. 31, 2012
Recurring [Member]
Amortized Cost Basis [Member]
U.S. Government Agency Debt Security [Member]
|
Jun. 29, 2013
Recurring [Member]
Amortized Cost Basis [Member]
Former-auction Corporate Debt Security [Member]
|
Dec. 31, 2012
Recurring [Member]
Amortized Cost Basis [Member]
Former-auction Corporate Debt Security [Member]
|
Jun. 29, 2013
Recurring [Member]
Amortized Cost Basis [Member]
Preferred Equity [Member]
|
Dec. 31, 2012
Recurring [Member]
Amortized Cost Basis [Member]
Preferred Equity [Member]
|
Jun. 29, 2013
Recurring [Member]
Amortized Cost Basis [Member]
State and Municipal Debt [Member]
|
Dec. 31, 2012
Recurring [Member]
Amortized Cost Basis [Member]
State and Municipal Debt [Member]
|
Jun. 29, 2013
Recurring [Member]
Fair Value [Member]
|
Dec. 31, 2012
Recurring [Member]
Fair Value [Member]
|
Jun. 29, 2013
Recurring [Member]
Fair Value [Member]
Fixed Income Securities [Member]
|
Dec. 31, 2012
Recurring [Member]
Fair Value [Member]
Fixed Income Securities [Member]
|
Dec. 31, 2012
Recurring [Member]
Fair Value [Member]
U.S. Government Agency Debt Security [Member]
|
Jun. 29, 2013
Recurring [Member]
Fair Value [Member]
Former-auction Corporate Debt Security [Member]
|
Dec. 31, 2012
Recurring [Member]
Fair Value [Member]
Former-auction Corporate Debt Security [Member]
|
Jun. 29, 2013
Recurring [Member]
Fair Value [Member]
Preferred Equity [Member]
|
Dec. 31, 2012
Recurring [Member]
Fair Value [Member]
Preferred Equity [Member]
|
Jun. 29, 2013
Recurring [Member]
Fair Value [Member]
State and Municipal Debt [Member]
|
Dec. 31, 2012
Recurring [Member]
Fair Value [Member]
State and Municipal Debt [Member]
|
Jun. 29, 2013
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
|
Dec. 31, 2012
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
|
Jun. 29, 2013
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Fixed Income Securities [Member]
|
Dec. 31, 2012
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Fixed Income Securities [Member]
|
Dec. 31, 2012
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
U.S. Government Agency Debt Security [Member]
|
Jun. 29, 2013
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Former-auction Corporate Debt Security [Member]
|
Dec. 31, 2012
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Former-auction Corporate Debt Security [Member]
|
Jun. 29, 2013
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Preferred Equity [Member]
|
Dec. 31, 2012
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
Preferred Equity [Member]
|
Jun. 29, 2013
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
State and Municipal Debt [Member]
|
Dec. 31, 2012
Recurring [Member]
Quoted Prices in Active Markets for Identical Assets, Level 1 [Member]
State and Municipal Debt [Member]
|
Jun. 29, 2013
Recurring [Member]
Significant Other Observable Inputs, Level 2 [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Other Observable Inputs, Level 2 [Member]
|
Jun. 29, 2013
Recurring [Member]
Significant Other Observable Inputs, Level 2 [Member]
Fixed Income Securities [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Other Observable Inputs, Level 2 [Member]
Fixed Income Securities [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Other Observable Inputs, Level 2 [Member]
U.S. Government Agency Debt Security [Member]
|
Jun. 29, 2013
Recurring [Member]
Significant Other Observable Inputs, Level 2 [Member]
Former-auction Corporate Debt Security [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Other Observable Inputs, Level 2 [Member]
Former-auction Corporate Debt Security [Member]
|
Jun. 29, 2013
Recurring [Member]
Significant Other Observable Inputs, Level 2 [Member]
Preferred Equity [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Other Observable Inputs, Level 2 [Member]
Preferred Equity [Member]
|
Jun. 29, 2013
Recurring [Member]
Significant Other Observable Inputs, Level 2 [Member]
State and Municipal Debt [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Other Observable Inputs, Level 2 [Member]
State and Municipal Debt [Member]
|
Jun. 29, 2013
Recurring [Member]
Significant Unobservable Inputs, Level 3 [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Unobservable Inputs, Level 3 [Member]
|
Jun. 29, 2013
Recurring [Member]
Significant Unobservable Inputs, Level 3 [Member]
Fixed Income Securities [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Unobservable Inputs, Level 3 [Member]
Fixed Income Securities [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Unobservable Inputs, Level 3 [Member]
U.S. Government Agency Debt Security [Member]
|
Jun. 29, 2013
Recurring [Member]
Significant Unobservable Inputs, Level 3 [Member]
Former-auction Corporate Debt Security [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Unobservable Inputs, Level 3 [Member]
Former-auction Corporate Debt Security [Member]
|
Jun. 29, 2013
Recurring [Member]
Significant Unobservable Inputs, Level 3 [Member]
Preferred Equity [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Unobservable Inputs, Level 3 [Member]
Preferred Equity [Member]
|
Jun. 29, 2013
Recurring [Member]
Significant Unobservable Inputs, Level 3 [Member]
State and Municipal Debt [Member]
|
Dec. 31, 2012
Recurring [Member]
Significant Unobservable Inputs, Level 3 [Member]
State and Municipal Debt [Member]
|
||||||||||||||||||||||||||||||||||||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale securities | $ 10,000 | [1] | $ 23,281 | [1] | $ 6,813 | [1],[2] | $ 10,235 | [1],[2] | $ 7,508 | [1],[2] | $ 1,770 | [1],[3] | $ 1,740 | [1],[3] | $ 0 | [1] | $ 2,404 | [1] | $ 1,417 | [1],[3] | $ 1,394 | [1],[3] | $ 11,989 | $ 26,561 | $ 6,812 | [2] | $ 10,240 | [2] | $ 7,510 | [2] | $ 3,047 | [3] | $ 3,078 | [3] | $ 450 | $ 4,081 | $ 1,680 | [3] | $ 1,652 | [3] | $ 0 | $ 7,510 | $ 0 | [2] | $ 0 | [2] | $ 7,510 | [2] | $ 0 | [3] | $ 0 | [3] | $ 0 | $ 0 | $ 0 | [3] | $ 0 | [3] | $ 11,539 | $ 17,483 | $ 6,812 | [2] | $ 10,240 | [2] | $ 0 | [2] | $ 3,047 | [3] | $ 3,078 | [3] | $ 0 | $ 2,513 | $ 1,680 | [3] | $ 1,652 | [3] | $ 450 | $ 1,568 | $ 0 | [2] | $ 0 | [2] | $ 0 | [2] | $ 0 | [3] | $ 0 | [3] | $ 450 | $ 1,568 | $ 0 | [3] | $ 0 | [3] | ||||||||
Available for sale debt securities, contractual maturities | 10 years | 1 year | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
LOSS PER SHARE (Details)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
Jun. 29, 2013
|
Jun. 30, 2012
|
|||||||
LOSS PER SHARE [Abstract] | ||||||||||
Weighted average common shares for basic loss per share (in shares) | 83,042 | 70,747 | 78,100 | 70,208 | ||||||
Effect of dilutive securities: [Abstract] | ||||||||||
Stock options (in shares) | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | ||
Unvested restricted shares (in shares) | 0 | [1] | 0 | [1] | 0 | [1] | 0 | [1] | ||
Adjusted weighted average shares for diluted loss per share (in shares) | 83,042 | 70,747 | 78,100 | 70,208 | ||||||
Stock Options [Member]
|
||||||||||
Antidilutive Securities Excluded From Computation Of Earning Per Share [Abstract] | ||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,021 | 3,056 | 2,021 | 3,056 | ||||||
Unvested Restricted Shares and Units [Member]
|
||||||||||
Antidilutive Securities Excluded From Computation Of Earning Per Share [Abstract] | ||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 3,278 | 1,726 | 3,278 | 1,726 | ||||||
|
RESTRUCTURING (Details) (USD $)
In Thousands, unless otherwise specified |
1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|---|
Feb. 28, 2013
Position
|
Jun. 29, 2013
|
Jun. 30, 2012
|
Jun. 29, 2013
Position
|
Jun. 30, 2012
Position
|
Dec. 31, 2012
|
|
RESTRUCTURING [Abstract] | ||||||
Number of positions eliminated | 25 | 25 | 30 | |||
Severance and management separation charges | $ 1,915 | $ 1,733 | ||||
Activity and liability balances related to the restructuring [Roll Forward] | ||||||
Beginning Balance | 395 | 0 | 0 | |||
Restructuring expense | 0 | 1,239 | 1,915 | 1,733 | 2,338 | |
Payments | (1,827) | (1,943) | ||||
Ending Balance | $ 483 | $ 483 | $ 395 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) (USD $)
In Thousands, unless otherwise specified |
6 Months Ended | |
---|---|---|
Jun. 29, 2013
|
Jun. 30, 2012
|
|
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (32,818) | $ (36,753) |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation | 7,499 | 8,463 |
Stock based compensation | 3,557 | 3,587 |
Amortization of premium on marketable securities | 38 | 360 |
Marketable securities recovery and accretion | (1,451) | (1,336) |
Gain on disposal of equipment | (161) | (22) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (5,507) | 4,540 |
Inventories | (664) | 2,123 |
Prepaid expenses and other assets | (1,565) | (1,032) |
Accounts payable | 1,630 | 229 |
Accrued liabilities and other liabilities | 1,276 | (1,688) |
Net cash used in operating activities | (28,166) | (21,529) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of plant and equipment | (3,454) | (2,144) |
Proceeds from sale of equipment | 1 | 22 |
Purchases of marketable securities | (8,130) | (27,014) |
Proceeds from sales and redemptions of marketable securities | 24,024 | 33,217 |
Net cash provided by investing activities | 12,441 | 4,081 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Issuance of common stock | 19,800 | 1,916 |
Net cash provided by financing activities | 19,800 | 1,916 |
Net increase (decrease) in cash and cash equivalents | 4,075 | (15,532) |
Cash and cash equivalents at beginning of period | 24,949 | 32,695 |
Cash and cash equivalents at end of period | $ 29,024 | $ 17,163 |
RESTRUCTURING
|
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2013
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RESTRUCTURING [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING |
In February 2013, the Company implemented a workforce reduction that eliminated approximately 25 positions throughout the Company which resulted in the Company recording a restructuring charge of $1,915 during the first quarter of 2013 for severance, related benefits and other costs. The unpaid balance at June 29, 2013 was $483 and was recorded within Accrued restructuring costs. In the six months ended June 30, 2012, the Company implemented workforce reductions that eliminated approximately 30 positions, primarily in manufacturing, sales and administration, resulting in restructuring charges of $1,733 for severance, related benefits and other costs. Activity and liability balances related to the restructurings were as follows:
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STOCKHOLDERS' EQUITY
|
6 Months Ended | ||
---|---|---|---|
Jun. 29, 2013
|
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STOCKHOLDERS' EQUITY [Abstract] | |||
STOCKHOLDERS' EQUITY |
During the six months ended June 29, 2013, the Company completed an underwritten public offering of 10,704 shares of common stock at a price of $2.00 per share, generating net proceeds to the Company of $19,695. |
FAIR VALUE AND MARKETABLE SECURITIES
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 29, 2013
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FAIR VALUE AND MARKETABLE SECURITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE AND MARKETABLE SECURITIES |
FAIR VALUE OF FINANCIAL INSTRUMENTS Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (exit price). Inputs used to measure fair value are classified in the following hierarchy:
The Company endeavors to utilize the best available information in measuring fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The following table presents a summary of fair value information for available-for-sale securities as at December 31, 2012 and June 29, 2013:
The fair value of each of the following instruments approximates their carrying value because of the short maturity of these instruments: cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities. AUCTION RATE SECURITIES AND FORMER-AUCTION CORPORATE DEBT SECURITY Auction rate securities (ARS) were a short-term cash management instrument used by the market and the Company prior to 2008. The instruments used a monthly Dutch auction process to provide liquidity on long-term financial instruments that reset the applicable interest rate and through the reset, allowed existing investors to rollover or liquidate their holdings at par value. During 2007 and early 2008, ARS failed to auction due to sell orders exceeding buy orders and trading continues to be constrained. During the second quarter of 2013, a Level 2 and Level 3 preferred equity ARS were redeemed at par value of $3,000 and $2,000, respectively. These redemptions resulted in a realized gain of $1,396, which was recorded to Other income, net. At June 29, 2013, certain ARS market information was insufficient to determine the fair value of one of the Company’s ARS investments resulting in a Level 3 valuation. Given the complexity of the ARS investment, the Company obtained an indicative price on the secondary market. For the three and six months ended June 29, 2013, the table below provides a reconciliation of the beginning and ending balances for the securities valued using a Level 3 valuation.
For the three and six months ended June 30, 2012, the table below provides a reconciliation of the beginning and ending balances for each type of security valued using a Level 3 valuation.
* The interest rate is based on a premium to one month LIBOR. (a) Security issued by a publicly-held insurance company trust, which held investments in U.S. Government obligations, highly rated commercial paper and money market funds and other investments approved by two credit rating agencies. The $2,500 face value security was redeemed by the issuer at a discount in the first quarter of 2012 for $2,013, resulting in a gain over its amortized cost basis of $1,250. (b) Preferred securities issued by subsidiaries of two publicly-held debt default insurers. For one security, the discounted cash flow (DCF) model used a 5% discount rate and the market comparables method observed secondary markets for similar securities trading at a 25% discount to face value. For the second security, the DCF model discount rate and the secondary market discount were 47% and 86%, respectively. On a weighted average basis, the DCF discount rate and the secondary market discount were 20% and 47%, respectively. |
INVENTORIES (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 29, 2013
|
Dec. 31, 2012
|
---|---|---|
Inventories [Abstract] | ||
Raw materials | $ 5,816 | $ 5,108 |
Work in process | 10,197 | 9,781 |
Finished goods | 3,491 | 3,951 |
Total | $ 19,504 | $ 18,840 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|---|
Jun. 29, 2013
|
Mar. 30, 2013
|
Jun. 30, 2012
|
Jun. 29, 2013
|
Jun. 30, 2012
|
|||||
Net Unrealized Gain (Loss) on Marketable Securities [Abstract] | |||||||||
Balance at January 1, 2013 | $ 3,144 | $ 2,055 | $ 2,055 | ||||||
Other comprehensive income before reclassifications | 242 | 1,118 | |||||||
Amounts reclassified from accumulated other comprehensive income | (1,422) | (29) | [1] | (30) | (1,451) | (1,336) | |||
Net current period other comprehensive income | (1,180) | 1,089 | |||||||
Balance at March 30, 2013 | 1,964 | 3,144 | 1,964 | ||||||
Foreign Currency Translation [Abstract] | |||||||||
Balance, beginning of period | (3) | (3) | (3) | ||||||
Other comprehensive income before reclassifications | 0 | 0 | |||||||
Amounts reclassified from accumulated other comprehensive income | 3 | [1] | 0 | [1] | |||||
Net current period other comprehensive income | 3 | 0 | 0 | 3 | 5 | ||||
Balance, end of period | 0 | (3) | 0 | ||||||
Total [Abstract] | |||||||||
Balance at January 1, 2013 | 3,141 | 2,052 | 2,052 | ||||||
Other comprehensive income before reclassifications | 242 | 1,118 | |||||||
Amounts reclassified from accumulated other comprehensive income | (1,419) | [1] | (29) | [1] | |||||
Net current period other comprehensive income | (1,177) | 1,089 | |||||||
Balance at March 30, 2013 | $ 1,964 | $ 3,141 | $ 1,964 | ||||||
|
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