10-Q

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    UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

/x/QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED April 4, 2015.
or
/ /TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO ____________.
Commission File No. 0-25662
ANADIGICS, Inc.
(Exact name of registrant as specified in its charter)
Delaware	22-2582106
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
141 Mt. Bethel Road, Warren, New Jersey	07059
(Address of principal executive offices)	(Zip Code)
(908) 668-5000
(Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [X] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (check one):

Large accelerated filer [ ] Accelerated filer [X] Non-accelerated filer (Do not check if a smaller reporting company) [ ] Smaller reporting company [ ]

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X]

The number of shares outstanding of the Registrant’s common stock as of April 4, 2015 was 87,668,442 (excluding 114,574 shares held in treasury).

INDEX

ANADIGICS, Inc.

PART I	Financial Information
Item 1.	Financial Statements (unaudited)
	Condensed consolidated balance sheets – April 4, 2015 and December 31, 2014
	Condensed consolidated statements of operations and comprehensive loss – Three months ended April 4, 2015 and March 29, 2014
	Condensed consolidated statements of cash flows – Three months ended April 4, 2015 and March 29, 2014
	Notes to Condensed consolidated financial statements – April 4, 2015
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 3.	Quantitative and Qualitative Disclosures About Market Risk
Item 4.	Controls and Procedures
PART II.	Other Information
Item 1A.	Risk Factors
Item 5.	Other Information
Item 6.	Exhibits
	Signatures

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PART I - FINANCIAL INFORMATION

Item 1.     Financial Statements

ANADIGICS, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

(AMOUNTS in thousands, EXCEPT PER SHARE AMOUNTS)

	April 4, 2015			December 31, 2014
	(Unaudited)			(Note 1)
ASSETS
Current assets:
Cash and cash equivalents	$	17,042		$	18,430
Accounts receivable, net		5,540			5,335
Inventories		11,458			13,844
Prepaid expenses and other current assets		3,299			2,721
Assets held for sale		335			335
Total current assets		37,674			40,665
Plant and equipment:
Equipment and furniture		190,890			190,718
Leasehold improvements		46,850			46,850
Projects in process		1,179			1,415
		238,919			238,983
Less accumulated depreciation and amortization		223,916			221,812
		15,003			17,171
Other assets		117			180
Total assets	$	52,794		$	58,016
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	5,410		$	5,913
Accrued liabilities		3,059			3,419
Accrued restructuring costs		514			904
Bank borrowings		4,000			4,000
Total current liabilities		12,983			14,236
Other long-term liabilities		982			1,122
Total liabilities		13,965			15,358
Commitments and contingencies
Stockholders’ equity:
Common stock, $0.01 par value, 144,000 shares authorized, 87,783 issued at April 4, 2015 and 86,878 issued at December 31, 2014		878			869
Additional paid-in capital		643,870			642,683
Accumulated deficit		(605,660	)		(600,635	)
Treasury stock at cost: 115 shares		(259	)		(259	)
Total stockholders’ equity		38,829			42,658
Total liabilities and stockholders’ equity	$	52,794		$	58,016

See accompanying notes.

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ANADIGICS, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(AMOUNTS in thousands, except per share amounts)

	Three months ended
	April 4, 2015			March 29, 2014
	(unaudited)			(unaudited)
Net sales	$	18,446		$	23,271
Cost of sales		14,438			21,000
Gross profit		4,008			2,271
Research and development expenses		5,211			8,576
Selling and administrative expenses		3,803			5,126
Restructuring charges		-			1,451
Operating loss		(5,006	)		(12,882	)
Interest and other (expense) income, net		(19	)		1,132
Net loss	$	(5,025	)	$	(11,750	)
Basic and diluted loss per share	$	(0.06	)	$	(0.14	)
Weighted average common shares outstanding used in computing loss per share
Basic and diluted		87,108			84,763

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(AMOUNTS in thousands)

	Three months ended
	April 4, 2015			March 29, 2014
	(unaudited)			(unaudited)
Net loss	$	(5,025	)	$	(11,750	)
Other comprehensive loss
Unrealized loss on marketable securities		-			(37	)
Reclassification adjustment:
Effect of net recognized gain on marketable securities reclassified to Interest and other (expense) income, net		-			(1,160	)
Comprehensive loss	$	(5,025	)	$	(12,947	)

See accompanying notes.

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ANADIGICS, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(AMOUNTS in thousands)

	Three months ended
	April 4, 2015			March 29, 2014
	(unaudited)			(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(5,025	)	$	(11,750	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation		2,226			3,332
Amortization		9			17
Stock based compensation		1,196			1,843
Gain on marketable securities		-			(1,160	)
Gain on disposal of equipment		3			-
Changes in operating assets and liabilities:
Accounts receivable		(205	)		2,735
Inventories		2,386			(1,408	)
Prepaid expenses and other assets		(595	)		(1,499	)
Accounts payable		(503	)		(2,206	)
Accrued liabilities and other liabilities		(890	)		193
Net cash used in operating activities		(1,398	)		(9,903	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of plant and equipment		(20	)		(407	)
Proceeds from sale of equipment		30			-
Proceeds from sale of marketable securities		-			2,960
Net cash provided by investing activities		10			2,553
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock		-			10
Proceeds from bank borrowings		4,000			700
Repayments of bank borrowings		(4,000	)		(700	)
Net cash provided by financing activities		-			10
Net decrease in cash and cash equivalents		(1,388	)		(7,340	)
Cash and cash equivalents at beginning of period		18,430			20,947
Cash and cash equivalents at end of period	$	17,042		$	13,607

See accompanying notes.

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ANADIGICS, Inc.

Notes to Condensed Consolidated Financial Statements (unaudited) – April 4, 2015

(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

1.     Summary of Significant Accounting Policies

  Basis of Presentation

ANADIGICS, Inc. (the Company) is a global leader in the design and manufacture of radio frequency semiconductor solutions for Infrastructure and Mobile applications. Infrastructure is comprised of products for the following applications:  CATV, small cell, WiFi, M2M, optical and other general RF applications.  Mobile is comprised of WiFi and Cellular products that primarily address the smartphone, handset and tablet markets.

    The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation have been included. Operating results for the three month period ended April 4, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

The condensed consolidated balance sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

The Company has evaluated subsequent events and determined that, other than the workforce reduction disclosed in Note 2, there were no subsequent events to recognize or disclose in these unaudited interim condensed consolidated financial statements.

RECENTLY ADOPTED ACCOUNTING STANDARDS

In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. The ASU became effective January 1, 2015. Adoption of this guidance did not impact the Company’s consolidated financial statements.

IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS

In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The guidance states that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition. The guidance is effective for annual and interim periods beginning after December 15, 2015 and early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which will replace most current revenue recognition guidance. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. It also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The amended guidance permits the initial application to be applied either retrospectively to each prior reporting period presented, or retrospectively with a cumulative effect adjustment made at the date of initial application. The guidance is effective for annual and interim periods beginning after December 15, 2016, with early adoption prohibited. The Company is currently evaluating the adoption method and the impact of adopting this guidance on its consolidated financial statements.

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INCOME TAXES

The Company maintains a full valuation allowance on its deferred tax assets. Accordingly, the Company has not recorded a benefit or provision for income taxes. The Company recognizes interest and penalties related to the underpayment of income taxes in income tax expense. No unrecognized tax benefits, interest or penalties were accrued at April 4, 2015. The Company’s U.S. federal net operating losses have occurred since 1998 and as such, tax years subject to potential tax examination could apply from that date because carrying-back net operating loss opens the relevant year to audit.

WARRANTY

Based on the examination of historical returns and other information it deems critical, the Company estimates that a current charge to income will need to be provided in order to cover future warranty obligations for products sold during the year. The accrued liability for warranty costs is included in Accrued liabilities in the condensed consolidated balance sheets.Changes in the Company’s product warranty reserve are as follows:

	Three months ended
	April 4, 2015			March 29, 2014
Beginning balance	$	237		$	383
Net (release) addition charged to Cost of sales		(35	)		51
Claims processed		(27	)		(101	)
Ending balance	$	175		$	333

RECLASSIFICATIONS

Certain prior period amounts have been reclassified to conform to the current presentation.

2.     RESTRUCTURING AND SUBSEQUENT EVENT

RESTRUCTURING

In February 2014, the Company implemented a workforce reduction that eliminated approximately 40 positions throughout the Company, and recorded a restructuring charge of $1,451 during the first quarter of 2014 for severance, related benefits and other costs. In mid 2014, the Company implemented a strategic restructuring plan to better address growth opportunities in infrastructure markets and to lower operating costs. The strategy included expanding the Company’s presence in the infrastructure space and reducing fixed costs associated with certain legacy mobile activities through a resizing of staff and manufacturing capability. By the end of 2014 and inclusive of the aforementioned first quarter 2014 charge, approximately 150 positions were eliminated throughout the Company and a $4,199 workforce reduction charge was recorded to Restructuring charges.

Activity and liability balances related to the restructurings were as follows:

	Workforce- related			Lease-related			Total
December 31, 2013 balance	$	245			-		$	245
Restructuring expense		4,002			197			4,199
Payments		(3,502	)		(38	)		(3,540	)
December 31, 2014 balance	$	745		$	159		$	904
Payments		(350	)		(40	)		(390	)
April 4, 2015 balance	$	395		$	119		$	514

SUBSEQUENT EVENT

In May 2015, as an extension of its strategic shift to Infrastructure and migration of its business model, the Company implemented a workforce reduction that eliminated approximately 25 positions throughout the Company and anticipates recording approximately $550 of restructuring charges during the second quarter of 2015 covering severance, related benefits and other costs.

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3.     FAIR VALUE AND MARKETABLE SECURITIES

The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the relatively short maturity of these items.

During the first quarter of 2014, a former-auction corporate debt security held by the Company sold for $2,960, resulting in a realized gain of $1,160 which was recorded to Interest and other (expense) income, net.

4.     Inventories

Inventories are stated at the lower of cost (first-in, first-out method) or market.

Inventories consist of the following:

	April 4, 2015		December 31, 2014
Raw materials	$	3,536	$	4,584
Work in process		2,677		3,052
Finished goods		5,245		6,208
Total	$	11,458	$	13,844

5.     STOCK BASED COMPENSATION

Equity Compensation Plans

As of April 4, 2015, the Company had one equity compensation plan: 2005 Long-Term Incentive and Share Award Plan (the “2005 Plan”). The 2005 Plan expired on April 6, 2015; therefore, as of that date, the Company has no shares reserved for issuance under any equity compensation plan. The Company has submitted for approval by its stockholders on May 12, 2015 a new equity compensation plan: 2015 Long-Term Incentive and Share Award Plan (the “2015 Plan”). If approved on May 12, 2015, the Company will have reserved for issuance under the 2015 Plan a maximum of 10,000 shares. Both the expired 2005 Plan and the proposed 2015 Plan provide for the granting of stock options, stock appreciation rights, restricted stock units and other share-based awards to eligible employees and directors, as defined in the respective plans.

The Company also has one employee stock purchase plan (the “ESP Plan”). As of April 4, 2015, approximately 1,820 shares of common stock remain available for grant under the ESP Plan.

The following table summarizes information related to awards of restricted stock units and stock options as well as changes during the three months period ended April 4, 2015:

	Restricted Stock Units									Stock Options
	Time-based					Performance- based				Time-based
	Units			Weighted Average (WA) grant date fair value		Units		WA price/ unit		Issuable upon exercise			WA exercise price		WA remaining contractual life
Outstanding at January 1, 2015		2,790		$	1.58		314	$	1.87		1,219		$	4.82
Granted		2,635			1.18		264		1.05		6			1.37
Shares vested/options exercised		(905	)		1.39		-		-
Forfeited/expired		(44	)		0.96		-		-		(120	)		4.41
Outstanding at April 4, 2015		4,476		$	1.39		578	$	1.50		1,105		$	4.85	3.5 years
Exercisable at April 4, 2015	N/A			N/A		N/A		N/A			1,094		$	4.88	3.4 years

In February 2015, the Company awarded 264 restricted stock units to its officers and other key employees which have market performance-based vesting conditions contingent upon the Company’s relative shareholder returns measured against defined peer group companies. The market performance-based awards will be evaluated annually in one-third increments measuring Company shareholder returns during the one, two and three year periods following the award. Company performance within the top 75^th percentile tier in a measurement period would result in maximum performance attainment, while performance below the 25th-percentile results in no vesting for that period. These market performance-based restricted stock units, included in the table above, have an average fair value of $1.05 calculated using a Monte Carlo Simulation model on the date of grant.

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The table below summarizes stock based compensation by financial statement line item for the three month periods ended April 4, 2015 and March 29, 2014:

	Three months ended
	April 4, 2015		March 29, 2014
Cost of sales	$	274	$	276
Research and development expenses		453		554
Selling and administrative expenses		469		1,013
Total stock based compensation	$	1,196	$	1,843

        No tax benefits have been recorded due to the Company’s full valuation allowance position.

As of April 4, 2015, there was $4,514 of unrecognized stock based compensation cost related to unvested restricted awards and unvested stock options. The weighted average remaining recognition periods for our restricted stock units and stock options are 1.2 and 2.3 years, respectively.

Valuation Method for ESP Plan, Stock Option Awards and Performance Awards

For ESP Plan and stock option awards, the fair value is estimated at the date of grant using a Black-Scholes option pricing model. The fair value of Company-based performance awards are fixed upon the date of grant. Market-based performance equity award fair values are calculated with the assistance of a valuation consultant using a Monte Carlo simulation method. The weighted average assumptions and fair values for stock-based compensation grants used for the three month periods ended April 4, 2015 and March 29, 2014 are summarized below:

	Three months ended
	April 4, 2015			March 29, 2014
Stock option awards:
Risk-free interest rate		1.3	%		1.7	%
Expected volatility		63	%		58	%
Average expected term (in years)		5.0			5.0
Expected dividend yield		0.0	%		0.0	%
Weighted average fair value of options granted	$	0.73		$	0.97
ESP Plan:
Risk-free interest rate		0.2	%		0.1	%
Expected volatility		75	%		45	%
Average expected term (in years)		1.0			1.0
Expected dividend yield		0.0	%		0.0	%
Weighted average fair value of purchase option	$	0.34		$	0.49
Performance awards:
Average risk-free interest rate		0.6	%		0.3	%
Expected volatility		66.5	%		54.6	%
Average expected term (in years)		3.0			3.0
Expected dividend yield		0.0	%		0.0	%
Weighted average fair value of performance awards	$	1.05		$	1.84

For equity awards with an expected term of one year or less, the assumption for expected volatility is solely based on the Company’s historical volatility, whereas for equity awards with expected terms of greater than one year, the assumption is based on a combination of implied and historical volatility.

Equity-based compensation recognized is reduced for estimated forfeitures and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

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6.     Loss Per Share

The reconciliation of shares used to calculate basic and diluted loss per share consists of the following:

	Three months ended
	April 4, 2015		March 29, 2014
Weighted average common shares for basic loss per share		87,108		84,763
Effect of dilutive securities:
Stock options (*)		-		-
Unvested restricted stock units (*)		-		-
Adjusted weighted average shares for diluted loss per share		87,108		84,763

* Incremental shares from restricted stock units and stock options are computed using the treasury stock method.

For the three months ended April 4, 2015 and March 29, 2014, potential additional dilution arising from any of the Company's outstanding stock options or unvested restricted stock units is detailed below. Such potential dilution was excluded as their effect was anti-dilutive.

	Three months ended
	April 4, 2015		March 29, 2014
Stock options		1,105		1,340
Unvested restricted stock units		5,054		3,646

7.     LEGAL PROCEEDINGS

    The Company is a party to ordinary course litigation arising out of the operation of its business. The Company accrues for a loss contingency when it determines that it is probable, after consultation with counsel, that a liability has been incurred and the amount of such loss can be reasonably estimated. The Company believes that the ultimate resolution of such ordinary course litigation, either individually or in the aggregate, will not have a material adverse effect on its consolidated financial condition, results of operations, or cash flows.

8.     BANK BORROWINGS UNDER CREDIT FACILITY

On October 24, 2014, the Company terminated a three-year $11,000 revolving credit facility with PNC Bank, N.A which had been scheduled to expire in 2016 and entered into a Loan and Security Agreement with Silicon Valley Bank (the “SVB Loan Agreement”). The SVB Loan Agreement provides the Company with a two-year revolving credit facility of $10,000 that expires on October 24, 2016. The Credit Agreement enables borrowings based upon 85% of eligible accounts receivable and is secured by certain insured accounts receivable and substantially all of the Company’s other assets. The SVB Loan Agreement requires compliance with certain covenants, including minimum EBITDA (as defined in the SVB Loan Agreement) and quick ratio levels, in addition to certain capital expenditure limits. The interest rate on the outstanding balance under the SVB Loan Agreement is Prime plus 0.5%. The SVB Loan Agreement contains a fee for any unused portion of the facility. As of April 4, 2015, the Company was in compliance with its covenants and $4,000 was outstanding under the SVB Loan Agreement.

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ANADIGICS, Inc.

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

OVERVIEW

    The terms “we,” “our,” “ours,” “us” and “Company” refer to ANADIGICS, Inc. We are a global leader in technology, design, and manufacturing of RF semiconductor solutions for infrastructure and mobile communications and data transmission markets. Our product portfolio includes line amplifiers, reverse path amplifiers, PAs, and FEICs. Our recently introduced Foundry services provide the capacity for large scale VCSEL wafer processing and testing. Our CATV solutions include line amplifiers, reverse path amplifiers, and other RF products that provide the critical link within CATV infrastructure communications networks, as well as CPE devices, such as set-top boxes and cable modems. Our WiFi infrastructure products include PAs and FEICs that enable wireless connectivity for infrastructure and multimedia applications, including access points, routers, media gateways, and set-top boxes. Our wireless infrastructure solutions include PAs that are crucial components in 3G and 4G Small-Cell base stations, including picocells, enterprise-class femtocells, and CPE devices that help carriers expand broadband network coverage and support greater levels of data transmission. Our PAs are used in a variety of 3G and 4G IoT applications, including automotive, M2M, and industrial devices.

Our WiFi mobile products include FEICs and PAs that are designed to enable WiFi connectivity in smartphones, tablets, notebooks, and gaming systems. Supporting the latest 802.11 standards, our FEICs ensure optimal WiFi performance. Our cellular products include PAs that enable 3G and 4G wireless connectivity in mobile handsets, smartphones, tablets, and notebooks. We believe our products and services are well positioned to address these market opportunities by delivering exceptional performance and value in the infrastructure and mobile markets, as well as cost-effective, high-volume foundry services for the sensing markets.

Our strategy is focused on manufacturing and delivering RF products that offer greater performance, reliability, and integration to enable high-speed data communications and transmissions, as well as compelling Foundry services that provide designers with scalability and greater value. We are a customer-centric organization that works closely with leading equipment designers and manufacturers to improve data transmission quality and system capacity. We also collaborate with industry-leading chipset providers where our functionality enhances their reference designs. These relationships enable us to target emerging trends in the market and help our customers achieve their performance, integration, and manufacturing goals.

Leveraging a variety of advanced internal and external technologies and materials, including MESFET, InGaP-Plus™, CMOS, GaAs, and GaN, our solutions deliver exceptional performance and integration. We believe that when used in our customers’ data transmission and communication devices, our products cost-effectively enhance RF performance, reliability, and overall functionality.

Our six-inch diameter GaAs fab located at our corporate headquarters in Warren, New Jersey, has been operational since 1999. We also have Foundry arrangements with several companies to supply alternate technologies and supplement our existing wafer fab capabilities. This structure provides us with access to unique technologies and flexible capacity without the requisite capital investment.

In mid 2014, we implemented a strategic restructuring plan to better address growth opportunities in infrastructure markets and to lower our operating costs (“Strategic Restructuring”). Our strategy included expanding our presence in the infrastructure space and reducing the fixed costs associated with certain legacy mobile activities through a resizing of our staff and manufacturing capability. 

In May 2015, as an extension of our strategic shift to Infrastructure and migration of our business model, we reduced our workforce by approximately 25 employees throughout the Company and anticipate recording approximately $0.6 million of restructuring charges during the second quarter of 2015. The workforce reduction in combination with other cost improvement actions were initiated with a view to achieving annualized savings of approximately $4.5 million.

    We were incorporated in Delaware in 1984. Our corporate headquarters are located at 141 Mt. Bethel Road, Warren, New Jersey 07059, and our telephone number at that address is 908-668-5000.

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Results of Operations

The following table sets forth unaudited consolidated statements of operations data as a percent of net sales for the periods presented:

	Three months ended
	April 4, 2015			March 29, 2014
Net sales		100.0	%		100.0	%
Cost of sales		78.3	%		90.2	%
Gross margin		21.7	%		9.8	%
Research and development expenses		28.2	%		36.9	%
Selling and administrative expenses		20.6	%		22.0	%
Restructuring charges		-			6.2	%
Operating loss		(27.1	)%		(55.3	)%
Interest and other (expense) income, net		(0.1	)%		4.8	%
Net loss		(27.2	)%		(50.5	)%

FIRST Quarter 2015 (ENDED APRIL 4, 2015) compared to first quarter 2014 (Ended MARCH 29, 2014)

Net Sales. Net sales decreased 20.7% during the first quarter of 2015 to $18.4 million from $23.3 million in the first quarter of 2014. The net sales decrease primarily resulted from a decrease in market demand for our Mobile products in line with our Strategic Restructuring toward Infrastructure, partly offset by increased Infrastructure product sales.

Sales of Infrastructure products increased 30.2% during the first quarter of 2015 to $12.0 million from $9.2 million in the first quarter of 2014. The increase in sales was primarily due to increased demand in the small cell infrastructure and Wifi markets.

Sales of Mobile products decreased 54.2% during the first quarter of 2015 to $6.4 million from $14.1 million in the first quarter of 2014. The decrease in sales was primarily due to decreased demand for our cellular products used in mobile applications.

Gross Margin. Gross margin during the first quarter of 2015 increased to 21.7% of net sales from 9.8% of net sales in the first quarter of 2014. The increase in gross margin in the first quarter of 2015, despite the reduction in revenue, was primarily due to manufacturing cost improvements achieved from restructuring and the increase in better margin Infrastructure product mix.

Research and Development. Company-sponsored research and development expenses decreased 39.2% to $5.2 million during the first quarter of 2015 from $8.6 million during the first quarter of 2014. The decrease was primarily due to cost savings achieved from our Strategic Restructuring to focus on Infrastructure, while limiting activities in Mobile.

Selling and Administrative. Selling and administrative expenses decreased 25.8% to $3.8 million during the first quarter of 2015 from $5.1 million during the first quarter of 2014. The decrease was primarily due to savings achieved from our Strategic Restructuring.

RESTRUCTURING CHARGES.      During the first quarter of 2014, we implemented a workforce reduction that eliminated approximately 40 positions throughout the Company which resulted in the Company recording a restructuring charge of approximately $1.5 million for severance, related benefits and other costs.

INTEREST AND OTHER (EXPENSE) INCOME, NET. During the first quarter of 2014, Interest and other (expense) income, net of $1.1 million was primarily from redemption proceeds received on one of our auction rate securities which was in excess of our amortized cost basis.

Liquidity and Capital Resources

As of April 4, 2015, we had $17.0 million in cash and cash equivalents, of which $4.0 million was drawn from our revolving line of credit.

Operating activities used $1.4 million in cash during the three month period ended April 4, 2015, primarily as a result of our operating results adjusted for non-cash expenses, as partly offset by $0.3 million of cash provided by working capital movements. There we no significant investing activities within the three month period ended April 4, 2015. Financing activities include a $4.0 million repayment on our working capital credit line facility, fully offset with a $4.0 million credit line facility borrowing for the three month period ended April 4, 2015.

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    We had unconditional purchase obligations at April 4, 2015 of approximately $1.7 million.

We believe that our existing sources of capital, including our existing cash and available credit facility, will be adequate to satisfy operational needs and anticipated capital needs for at least the next twelve months. We may elect to finance all or part of our future capital requirements through additional equity or debt financing. There can be no assurance that such additional financing would be available on satisfactory terms. 

RECENTLY ADOPTED ACCOUNTING STANDARDS

In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. The ASU became effective January 1, 2015. Adoption of this guidance did not impact our consolidated financial statements.

IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS

In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The guidance states that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition. The guidance is effective for annual and interim periods beginning after December 15, 2015 and early adoption is permitted. We are currently evaluating the impact of adopting this guidance on our consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which will replace most current revenue recognition guidance. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. It also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The amended guidance permits the initial application to be applied either retrospectively to each prior reporting period presented, or retrospectively with a cumulative effect adjustment made at the date of initial application. The guidance is effective for annual and interim periods beginning after December 15, 2016, with early adoption prohibited. We are currently evaluating the adoption method and the impact of adopting this guidance on our consolidated financial statements.

FORWARD-LOOKING STATEMENTS

This quarterly report on Form 10-Q 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. Such factors include, but are not limited to, those risk factors listed in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. The Company undertakes no obligation to update publicly or revise any forward-looking statement, whether as a result of new information, future developments or otherwise.

Item 3. Quantitative And Qualitative Disclosures About Market Risk

The Company's market risk has not changed significantly from the risks disclosed in Item 7A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2014.

ITem 4. Controls and Procedures

        We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed with the Securities and Exchange Commission (SEC) is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer (CEO) and Chief Financial Officer (CFO) as appropriate, to allow timely decisions regarding required disclosure. As of April 4, 2015, an evaluation was performed under the supervision and with the participation of our Management, including our CEO and CFO, of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) under the U.S. Securities Exchange Act of 1934). Based on that evaluation, our management, including our CEO and CFO, concluded that our disclosure controls and procedures were effective as of April 4, 2015.

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There was no change in the Company’s internal control over financial reporting during the Company’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Because of their inherent limitations, disclosure controls and procedures and internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

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ANADIGICS, Inc.

PART II - OTHER INFORMATION

Item     1A.     RISK FACTORS

There have been no material changes from the risks as previously disclosed in the “Risk Factors” section in our Annual Report on Form 10-K for the year ended December 31, 2014.

ITEM      5.     Other Information

NONE.

Item     6.     Exhibits

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, Executive 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, Executive Vice President and Chief Financial Officer of ANADIGICS, Inc.

101.INS**     XBRL Instance

101.SCH**    XBRL Taxonomy Extension Schema

101.CAL**    XBRL Taxonomy Extension Calculation

101.DEF**     XBRL Taxonomy Extension Definition

101.LAB**    XBRL Taxonomy Extension Labels

101.PRE**     XBRL Taxonomy Extension Presentation

** XBRL information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

14

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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.

By:	/s/ Terrence G. Gallagher
	Terrence G. Gallagher
	Executive Vice President and Chief Financial Officer

Dated: May 8, 2015

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Ronald Michels, certify that:

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 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.

Date:     May 8, 2015                                                                                 

By:	/s/ Ronald Michels Ronald Michels
	Chairman and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Terrence G. Gallagher, certify that:

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 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.

Date:     May 8, 2015          

By:	/s/ Terrence G. Gallagher
	Terrence G. Gallagher
	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

   The undersigned, Ronald Michels, Chairman and Chief Executive Officer of ANADIGICS, Inc. (the "Company"), hereby certifies that the Quarterly Report of the Company on Form 10-Q for the period ended April 4, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 8, 2015

By:	/s/ Ronald Michels
	Ronald Michels
	Chairman and Chief Executive Officer

This certification shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to ANADIGICS, Inc. and will be retained by ANADIGICS, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

CERTIFICATION

   The undersigned, Terrence G. Gallagher, Vice President and Chief Financial Officer of ANADIGICS, Inc. (the "Company"), hereby certifies that the Quarterly Report of the Company on Form 10-Q for the period ended April 4, 2015 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 8, 2015

By:	/s/ Terrence G. Gallagher
	Terrence G. Gallagher
	Executive Vice President and
	Chief Financial Officer

This certification shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934, as amended, and will not be incorporated by reference into any registration statement filed under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated by reference.

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to ANADIGICS, Inc. and will be retained by ANADIGICS, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Note 8 - Bank Borrowings Under Credit Facility (Details) (USD $) In Thousands, unless otherwise specified	1 Months Ended
	Oct. 24, 2014	Apr. 04, 2015
Note 8 - Bank Borrowings Under Credit Facility (Details) [Line Items]
Debt Instrument, Term	3 years
Prime Rate [Member] | SVB Loan Agreement [Member] | Line of Credit [Member]
Note 8 - Bank Borrowings Under Credit Facility (Details) [Line Items]
Debt Instrument, Basis Spread on Variable Rate	0.50%
PNC Credit Agreement [Member] | Line of Credit [Member]
Note 8 - Bank Borrowings Under Credit Facility (Details) [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity	$ 11,000
SVB Loan Agreement [Member] | Line of Credit [Member]
Note 8 - Bank Borrowings Under Credit Facility (Details) [Line Items]
Debt Instrument, Term	2 years
Line of Credit Facility, Maximum Borrowing Capacity	10,000
Line of Credit Facility, Expiration Date	Oct. 24, 2016
Line of Credit Facility, Percent of Eligible Accounts Receivable	85.00%
Long-term Line of Credit		$ 4,000

XML

Note 3 - Fair Value and Marketable Securities (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 29, 2014
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Note 3 - Fair Value and Marketable Securities (Details) [Line Items]
Proceeds from Sale of Available-for-sale Securities, Debt	$ 2,960
Interest and Other (Expense) [Member]
Note 3 - Fair Value and Marketable Securities (Details) [Line Items]
Gain (Loss) on Sale of Equity Investments	$ 1,160

XML

Note 3 - Fair Value and Marketable Securities

3 Months Ended

Apr. 04, 2015

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

3.     FAIR VALUE AND MARKETABLE SECURITIES

The carrying amounts of the Company’s cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the relatively short maturity of these items.

During the first quarter of 2014, a former-auction corporate debt security held by the Company sold for $2,960, resulting in a realized gain of $1,160 which was recorded to Interest and other (expense) income, net.

XML

Note 5 - Stock Based Compensation (Details) - Allocation of Share-based Compensation (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	$ 1,196	$ 1,843
Cost of Sales [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	274	276
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	453	554
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation	$ 469	$ 1,013

XML

Note 5 - Stock Based Compensation (Details) - Summary of Stock Option and Restricted Stock Activity (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Apr. 04, 2015	Dec. 31, 2014
Time-based Restricted Stock Units (RSUs) [Member]
Note 5 - Stock Based Compensation (Details) - Summary of Stock Option and Restricted Stock Activity [Line Items]
Balance, Restricted Stock Shares	4,476	2,790
Balance, Restricted Stock Weighted Average per Share	$ 1.39	$ 1.58
Exercisable at April 4, 2015	0
Exercisable at April 4, 2015	$ 0
Granted	2,635
Granted	$ 1.18
Shares vested/options exercised	(905)
Shares vested/options exercised	$ 1.39
Forfeited/expired	(44)
Forfeited/expired	$ 0.96
Performance-base Restricted Stock Units (RSUs) [Member]
Note 5 - Stock Based Compensation (Details) - Summary of Stock Option and Restricted Stock Activity [Line Items]
Balance, Restricted Stock Shares	578	314
Balance, Restricted Stock Weighted Average per Share	$ 1.50	$ 1.87
Exercisable at April 4, 2015	0
Exercisable at April 4, 2015	$ 0
Granted	264
Granted	$ 1.05
Time-based Stock Options [Member]
Note 5 - Stock Based Compensation (Details) - Summary of Stock Option and Restricted Stock Activity [Line Items]
Balance, Stock Options Shares	1,105	1,219
Balance, Stock Options Weighted Average Exercise Price	$ 4.85	$ 4.82
Balance, Stock Options Weighted Average Remaining Contractual Life	3 years 6 months
Exercisable at April 4, 2015	1,094
Exercisable at April 4, 2015	$ 4.88
Exercisable at April 4, 2015	3 years 146 days
Granted	6
Granted	$ 1.37
Forfeited/expired	(120)
Forfeited/expired	$ 4.41

XML

Note 5 - Stock Based Compensation (Details) - Weighted Average Assumptions and Fair Values for Stock-based Compensation Grants (USD $)	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
Employee Stock Option [Member]
Note 5 - Stock Based Compensation (Details) - Weighted Average Assumptions and Fair Values for Stock-based Compensation Grants [Line Items]
Risk-free interest rate	1.30%	1.70%
Expected volatility	63.00%	58.00%
Average expected term (in years)	5 years	5 years
Expected dividend yield	0.00%	0.00%
Weighted average fair value of (in Dollars per share)	$ 0.73	$ 0.97
Employee Stock Purchase Plan [Member]
Note 5 - Stock Based Compensation (Details) - Weighted Average Assumptions and Fair Values for Stock-based Compensation Grants [Line Items]
Risk-free interest rate	0.20%	0.10%
Expected volatility	75.00%	45.00%
Average expected term (in years)	1 year	1 year
Expected dividend yield	0.00%	0.00%
Weighted average fair value of (in Dollars per share)	$ 0.34	$ 0.49
Performance Shares [Member]
Note 5 - Stock Based Compensation (Details) - Weighted Average Assumptions and Fair Values for Stock-based Compensation Grants [Line Items]
Risk-free interest rate	0.60%	0.30%
Expected volatility	66.50%	54.60%
Average expected term (in years)	3 years	3 years
Expected dividend yield	0.00%	0.00%
Weighted average fair value of (in Dollars per share)	$ 1.05	$ 1.84

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Note 6 - Loss Per Share (Details) - Reconciliation of Earnings (Loss) Per Share In Thousands, unless otherwise specified	3 Months Ended
	Apr. 04, 2015		Mar. 29, 2014
Reconciliation of Earnings (Loss) Per Share [Abstract]
Weighted average common shares for basic loss per share	87,108		84,763
Effect of dilutive securities:
Stock options (*)	0	[1]	0	[1]
Unvested restricted stock units (*)	0	[1]	0	[1]
Adjusted weighted average shares for diluted loss per share	87,108		84,763

[1] Incremental shares from restricted stock units and stock options are computed using the treasury stock method.

XML

Note 2 - Restructuring and Subsequent Event

3 Months Ended

Apr. 04, 2015

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

2.     RESTRUCTURING AND SUBSEQUENT EVENT

RESTRUCTURING

In February 2014, the Company implemented a workforce reduction that eliminated approximately 40 positions throughout the Company, and recorded a restructuring charge of $1,451 during the first quarter of 2014 for severance, related benefits and other costs. In mid 2014, the Company implemented a strategic restructuring plan to better address growth opportunities in infrastructure markets and to lower operating costs. The strategy included expanding the Company’s presence in the infrastructure space and reducing fixed costs associated with certain legacy mobile activities through a resizing of staff and manufacturing capability. By the end of 2014 and inclusive of the aforementioned first quarter 2014 charge, approximately 150 positions were eliminated throughout the Company and a $4,199 workforce reduction charge was recorded to Restructuring charges.

Activity and liability balances related to the restructurings were as follows:

	Workforce- related			Lease-related			Total
December 31, 2013 balance	$	245			-		$	245
Restructuring expense		4,002			197			4,199
Payments		(3,502	)		(38	)		(3,540	)
December 31, 2014 balance	$	745		$	159		$	904
Payments		(350	)		(40	)		(390	)
April 4, 2015 balance	$	395		$	119		$	514

SUBSEQUENT EVENT

In May 2015, as an extension of its strategic shift to Infrastructure and migration of its business model, the Company implemented a workforce reduction that eliminated approximately 25 positions throughout the Company and anticipates recording approximately $550 of restructuring charges during the second quarter of 2015 covering severance, related benefits and other costs.

XML

Note 6 - Loss Per Share (Details) - Antidilutive Securities Excluded from Earnings (Loss) Per Share In Thousands, unless otherwise specified	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities	1,105	1,340
Unvested Restricted Shares and Units [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive Securities	5,054	3,646

XML

Condensed Consolidated Balance Sheets (Current Period Unaudited) (USD $) In Thousands, unless otherwise specified	Apr. 04, 2015	Dec. 31, 2014
ASSETS
Cash and cash equivalents	$ 17,042	$ 18,430
Accounts receivable, net	5,540	5,335
Inventories	11,458	13,844
Prepaid expenses and other current assets	3,299	2,721
Assets held for sale	335	335
Total current assets	37,674	40,665
Equipment and furniture	190,890	190,718
Leasehold improvements	46,850	46,850
Projects in process	1,179	1,415
	238,919	238,983
Less accumulated depreciation and amortization	223,916	221,812
	15,003	17,171
Other assets	117	180
Total assets	52,794	58,016
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable	5,410	5,913
Accrued liabilities	3,059	3,419
Accrued restructuring costs	514	904
Bank borrowings	4,000	4,000
Total current liabilities	12,983	14,236
Other long-term liabilities	982	1,122
Total liabilities	13,965	15,358
Commitments and contingencies
Common stock, $0.01 par value, 144,000 shares authorized, 87,783 issued at April 4, 2015 and 86,878 issued at December 31, 2014	878	869
Additional paid-in capital	643,870	642,683
Accumulated deficit	(605,660)	(600,635)
Treasury stock at cost: 115 shares	(259)	(259)
Total stockholders’ equity	38,829	42,658
Total liabilities and stockholders’ equity	$ 52,794	$ 58,016

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (5,025)	$ (11,750)
Depreciation	2,226	3,332
Amortization	9	17
Stock based compensation	1,196	1,843
Gain on marketable securities		(1,160)
Gain on disposal of equipment	3
Accounts receivable	(205)	2,735
Inventories	2,386	(1,408)
Prepaid expenses and other assets	(595)	(1,499)
Accounts payable	(503)	(2,206)
Accrued liabilities and other liabilities	(890)	193
Net cash used in operating activities	(1,398)	(9,903)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of plant and equipment	(20)	(407)
Proceeds from sale of equipment	30
Proceeds from sale of marketable securities		2,960
Net cash provided by investing activities	10	2,553
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of common stock		10
Proceeds from bank borrowings	4,000	700
Repayments of bank borrowings	(4,000)	(700)
Net cash provided by financing activities		10
Net decrease in cash and cash equivalents	(1,388)	(7,340)
Cash and cash equivalents at beginning of period	18,430	20,947
Cash and cash equivalents at end of period	$ 17,042	$ 13,607

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Note 1 - Summary of Significant Accounting Policies (Details) - Changes in Warranty Reserve (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
Changes in Warranty Reserve [Abstract]
Beginning balance	$ 237	$ 383
Net (release) addition charged to Cost of sales	(35)	51
Claims processed	(27)	(101)
Ending balance	$ 175	$ 333

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Note 2 - Restructuring and Subsequent Event (Details) - Liability Balance Related to Restructuring (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended	1 Months Ended
	Apr. 04, 2015	Mar. 29, 2014	Dec. 31, 2014	May 31, 2015
Restructuring Cost and Reserve [Line Items]
Balance	$ 904	$ 245	$ 245
Restructuring expense		1,451
Payments	(390)		(3,540)
Balance	514		904
Workforce-related [Member]
Restructuring Cost and Reserve [Line Items]
Balance	745	245	245
Restructuring expense			4,002
Payments	(350)		(3,502)
Balance	395		745
Lease-related [Member]
Restructuring Cost and Reserve [Line Items]
Balance	159
Restructuring expense			197
Payments	(40)		(38)
Balance	119		159
Employee Severance [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring expense		$ 1,451	$ 4,199	$ 550

XML

Note 1 - Summary of Significant Accounting Policies

3 Months Ended

Apr. 04, 2015

Accounting Policies [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

1.     Summary of Significant Accounting Policies

  Basis of Presentation

ANADIGICS, Inc. (the Company) is a global leader in the design and manufacture of radio frequency semiconductor solutions for Infrastructure and Mobile applications. Infrastructure is comprised of products for the following applications:  CATV, small cell, WiFi, M2M, optical and other general RF applications.  Mobile is comprised of WiFi and Cellular products that primarily address the smartphone, handset and tablet markets.

    The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation have been included. Operating results for the three month period ended April 4, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

The condensed consolidated balance sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

The Company has evaluated subsequent events and determined that, other than the workforce reduction disclosed in Note 2, there were no subsequent events to recognize or disclose in these unaudited interim condensed consolidated financial statements.

RECENTLY ADOPTED ACCOUNTING STANDARDS

In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. The ASU became effective January 1, 2015. Adoption of this guidance did not impact the Company’s consolidated financial statements.

IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS

In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The guidance states that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition. The guidance is effective for annual and interim periods beginning after December 15, 2015 and early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which will replace most current revenue recognition guidance. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. It also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The amended guidance permits the initial application to be applied either retrospectively to each prior reporting period presented, or retrospectively with a cumulative effect adjustment made at the date of initial application. The guidance is effective for annual and interim periods beginning after December 15, 2016, with early adoption prohibited. The Company is currently evaluating the adoption method and the impact of adopting this guidance on its consolidated financial statements.

INCOME TAXES

The Company maintains a full valuation allowance on its deferred tax assets. Accordingly, the Company has not recorded a benefit or provision for income taxes. The Company recognizes interest and penalties related to the underpayment of income taxes in income tax expense. No unrecognized tax benefits, interest or penalties were accrued at April 4, 2015. The Company’s U.S. federal net operating losses have occurred since 1998 and as such, tax years subject to potential tax examination could apply from that date because carrying-back net operating loss opens the relevant year to audit.

WARRANTY

Based on the examination of historical returns and other information it deems critical, the Company estimates that a current charge to income will need to be provided in order to cover future warranty obligations for products sold during the year. The accrued liability for warranty costs is included in Accrued liabilities in the condensed consolidated balance sheets. Changes in the Company’s product warranty reserve are as follows:

	Three months ended
	April 4, 2015			March 29, 2014
Beginning balance	$	237		$	383
Net (release) addition charged to Cost of sales		(35	)		51
Claims processed		(27	)		(101	)
Ending balance	$	175		$	333

RECLASSIFICATIONS

Certain prior period amounts have been reclassified to conform to the current presentation.

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Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) In Thousands, except Per Share data, unless otherwise specified	Apr. 04, 2015	Dec. 31, 2014
Common stock, par value (in Dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	144,000	144,000
Common stock, shares issued	87,783	86,878
Treasury stock at cost: shares	115	115

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Note 2 - Restructuring and Subsequent Event (Tables)

3 Months Ended

Apr. 04, 2015

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs [Table Text Block]

	Workforce- related			Lease-related			Total
December 31, 2013 balance	$	245			-		$	245
Restructuring expense		4,002			197			4,199
Payments		(3,502	)		(38	)		(3,540	)
December 31, 2014 balance	$	745		$	159		$	904
Payments		(350	)		(40	)		(390	)
April 4, 2015 balance	$	395		$	119		$	514

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Document And Entity Information	3 Months Ended
	Apr. 04, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	ANADIGICS INC
Document Type	10-Q
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding	87,668,442
Amendment Flag	false
Entity Central Index Key	0000940332
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Accelerated Filer
Entity Well-known Seasoned Issuer	No
Document Period End Date	Apr. 04, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1

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Note 4 - Inventories (Tables)

3 Months Ended

Apr. 04, 2015

Inventory Disclosure [Abstract]

Schedule of Inventory, Current [Table Text Block]

	April 4, 2015		December 31, 2014
Raw materials	$	3,536	$	4,584
Work in process		2,677		3,052
Finished goods		5,245		6,208
Total	$	11,458	$	13,844

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Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
Net sales	$ 18,446	$ 23,271
Cost of sales	14,438	21,000
Gross profit	4,008	2,271
Research and development expenses	5,211	8,576
Selling and administrative expenses	3,803	5,126
Restructuring charges		1,451
Operating loss	(5,006)	(12,882)
Interest and other (expense) income, net	(19)	1,132
Net loss	$ (5,025)	$ (11,750)
Basic and diluted loss per share (in Dollars per share)	$ (0.06)	$ (0.14)
Basic and diluted (in Shares)	87,108	84,763

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Note 6 - Loss Per Share

3 Months Ended

Apr. 04, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

6.     Loss Per Share

The reconciliation of shares used to calculate basic and diluted loss per share consists of the following:

	Three months ended
	April 4, 2015		March 29, 2014
Weighted average common shares for basic loss per share		87,108		84,763
Effect of dilutive securities:
Stock options (*)		-		-
Unvested restricted stock units (*)		-		-
Adjusted weighted average shares for diluted loss per share		87,108		84,763

* Incremental shares from restricted stock units and stock options are computed using the treasury stock method.

For the three months ended April 4, 2015 and March 29, 2014, potential additional dilution arising from any of the Company's outstanding stock options or unvested restricted stock units is detailed below. Such potential dilution was excluded as their effect was anti-dilutive.

	Three months ended
	April 4, 2015		March 29, 2014
Stock options		1,105		1,340
Unvested restricted stock units		5,054		3,646

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Note 5 - Stock Based Compensation

3 Months Ended

Apr. 04, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

5.     STOCK BASED COMPENSATION

Equity Compensation Plans

As of April 4, 2015, the Company had one equity compensation plan: 2005 Long-Term Incentive and Share Award Plan (the “2005 Plan”). The 2005 Plan expired on April 6, 2015; therefore, as of that date, the Company has no shares reserved for issuance under any equity compensation plan. The Company has submitted for approval by its stockholders on May 12, 2015 a new equity compensation plan: 2015 Long-Term Incentive and Share Award Plan (the “2015 Plan”). If approved on May 12, 2015, the Company will have reserved for issuance under the 2015 Plan a maximum of 10,000 shares. Both the expired 2005 Plan and the proposed 2015 Plan provide for the granting of stock options, stock appreciation rights, restricted stock units and other share-based awards to eligible employees and directors, as defined in the respective plans.

The Company also has one employee stock purchase plan (the “ESP Plan”). As of April 4, 2015, approximately 1,820 shares of common stock remain available for grant under the ESP Plan.

The following table summarizes information related to awards of restricted stock units and stock options as well as changes during the three months period ended April 4, 2015:

	Restricted Stock Units									Stock Options
	Time-based					Performance- based				Time-based
	Units			Weighted Average (WA) grant date fair value		Units		WA price/ unit		Issuable upon exercise			WA exercise price		WA remaining contractual life
Outstanding at January 1, 2015		2,790		$	1.58		314	$	1.87		1,219		$	4.82
Granted		2,635			1.18		264		1.05		6			1.37
Shares vested/options exercised		(905	)		1.39		-		-
Forfeited/expired		(44	)		0.96		-		-		(120	)		4.41
Outstanding at April 4, 2015		4,476		$	1.39		578	$	1.50		1,105		$	4.85	3.5 years
Exercisable at April 4, 2015	N/A			N/A		N/A		N/A			1,094		$	4.88	3.4 years

In February 2015, the Company awarded 264 restricted stock units to its officers and other key employees which have market performance-based vesting conditions contingent upon the Company’s relative shareholder returns measured against defined peer group companies. The market performance-based awards will be evaluated annually in one-third increments measuring Company shareholder returns during the one, two and three year periods following the award. Company performance within the top 75^th percentile tier in a measurement period would result in maximum performance attainment, while performance below the 25th-percentile results in no vesting for that period. These market performance-based restricted stock units, included in the table above, have an average fair value of $1.05 calculated using a Monte Carlo Simulation model on the date of grant.

The table below summarizes stock based compensation by financial statement line item for the three month periods ended April 4, 2015 and March 29, 2014:

	Three months ended
	April 4, 2015		March 29, 2014
Cost of sales	$	274	$	276
Research and development expenses		453		554
Selling and administrative expenses		469		1,013
Total stock based compensation	$	1,196	$	1,843

        No tax benefits have been recorded due to the Company’s full valuation allowance position.

As of April 4, 2015, there was $4,514 of unrecognized stock based compensation cost related to unvested restricted awards and unvested stock options. The weighted average remaining recognition periods for our restricted stock units and stock options are 1.2 and 2.3 years, respectively.

Valuation Method for ESP Plan, Stock Option Awards and Performance Awards

For ESP Plan and stock option awards, the fair value is estimated at the date of grant using a Black-Scholes option pricing model. The fair value of Company-based performance awards are fixed upon the date of grant. Market-based performance equity award fair values are calculated with the assistance of a valuation consultant using a Monte Carlo simulation method. The weighted average assumptions and fair values for stock-based compensation grants used for the three month periods ended April 4, 2015 and March 29, 2014 are summarized below:

	Three months ended
	April 4, 2015			March 29, 2014
Stock option awards:
Risk-free interest rate		1.3	%		1.7	%
Expected volatility		63	%		58	%
Average expected term (in years)		5.0			5.0
Expected dividend yield		0.0	%		0.0	%
Weighted average fair value of options granted	$	0.73		$	0.97
ESP Plan:
Risk-free interest rate		0.2	%		0.1	%
Expected volatility		75	%		45	%
Average expected term (in years)		1.0			1.0
Expected dividend yield		0.0	%		0.0	%
Weighted average fair value of purchase option	$	0.34		$	0.49
Performance awards:
Average risk-free interest rate		0.6	%		0.3	%
Expected volatility		66.5	%		54.6	%
Average expected term (in years)		3.0			3.0
Expected dividend yield		0.0	%		0.0	%
Weighted average fair value of performance awards	$	1.05		$	1.84

For equity awards with an expected term of one year or less, the assumption for expected volatility is solely based on the Company’s historical volatility, whereas for equity awards with expected terms of greater than one year, the assumption is based on a combination of implied and historical volatility.

Equity-based compensation recognized is reduced for estimated forfeitures and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

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Note 2 - Restructuring and Subsequent Event (Details) (USD $) In Thousands, unless otherwise specified	1 Months Ended		3 Months Ended	12 Months Ended
	May 31, 2015	Feb. 28, 2014	Mar. 29, 2014	Dec. 31, 2014
Note 2 - Restructuring and Subsequent Event (Details) [Line Items]
Restructuring and Related Cost, Number of Positions Eliminated	25	40		150
Restructuring Charges			$ 1,451
Employee Severance [Member]
Note 2 - Restructuring and Subsequent Event (Details) [Line Items]
Restructuring Charges	550		$ 1,451	4,199

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Note 5 - Stock Based Compensation (Tables)

3 Months Ended

Apr. 04, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Nonvested Share Activity [Table Text Block]

	Restricted Stock Units									Stock Options
	Time-based					Performance- based				Time-based
	Units			Weighted Average (WA) grant date fair value		Units		WA price/ unit		Issuable upon exercise			WA exercise price		WA remaining contractual life
Outstanding at January 1, 2015		2,790		$	1.58		314	$	1.87		1,219		$	4.82
Granted		2,635			1.18		264		1.05		6			1.37
Shares vested/options exercised		(905	)		1.39		-		-
Forfeited/expired		(44	)		0.96		-		-		(120	)		4.41
Outstanding at April 4, 2015		4,476		$	1.39		578	$	1.50		1,105		$	4.85	3.5 years
Exercisable at April 4, 2015	N/A			N/A		N/A		N/A			1,094		$	4.88	3.4 years

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block]

	Three months ended
	April 4, 2015		March 29, 2014
Cost of sales	$	274	$	276
Research and development expenses		453		554
Selling and administrative expenses		469		1,013
Total stock based compensation	$	1,196	$	1,843

Schedule of Share-based Payment Award Stock Option Awards and Employee Stock Purchase Plan Valuation Assumptions [Table Text Block]

	Three months ended
	April 4, 2015			March 29, 2014
Stock option awards:
Risk-free interest rate		1.3	%		1.7	%
Expected volatility		63	%		58	%
Average expected term (in years)		5.0			5.0
Expected dividend yield		0.0	%		0.0	%
Weighted average fair value of options granted	$	0.73		$	0.97
ESP Plan:
Risk-free interest rate		0.2	%		0.1	%
Expected volatility		75	%		45	%
Average expected term (in years)		1.0			1.0
Expected dividend yield		0.0	%		0.0	%
Weighted average fair value of purchase option	$	0.34		$	0.49
Performance awards:
Average risk-free interest rate		0.6	%		0.3	%
Expected volatility		66.5	%		54.6	%
Average expected term (in years)		3.0			3.0
Expected dividend yield		0.0	%		0.0	%
Weighted average fair value of performance awards	$	1.05		$	1.84

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Accounting Policies, by Policy (Policies)

3 Months Ended

Apr. 04, 2015

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

ANADIGICS, Inc. (the Company) is a global leader in the design and manufacture of radio frequency semiconductor solutions for Infrastructure and Mobile applications. Infrastructure is comprised of products for the following applications:  CATV, small cell, WiFi, M2M, optical and other general RF applications.  Mobile is comprised of WiFi and Cellular products that primarily address the smartphone, handset and tablet markets.

    The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and adjustments) considered necessary for a fair presentation have been included. Operating results for the three month period ended April 4, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015.

The condensed consolidated balance sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all the information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.

The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

The Company has evaluated subsequent events and determined that, other than the workforce reduction disclosed in Note 2, there were no subsequent events to recognize or disclose in these unaudited interim condensed consolidated financial statements.

New Accounting Pronouncements, Policy [Policy Text Block]

RECENTLY ADOPTED ACCOUNTING STANDARDS

In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of an Entity, which changes the criteria for determining which disposals can be presented as discontinued operations and modifies the related disclosure requirements. The ASU became effective January 1, 2015. Adoption of this guidance did not impact the Company’s consolidated financial statements.

IMPACT OF RECENTLY ISSUED ACCOUNTING STANDARDS

In June 2014, the FASB issued ASU 2014-12, Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. The guidance states that a performance target in a share-based payment that affects vesting and that could be achieved after the requisite service period should be accounted for as a performance condition. The guidance is effective for annual and interim periods beginning after December 15, 2015 and early adoption is permitted. The Company is currently evaluating the impact of adopting this guidance on its consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which will replace most current revenue recognition guidance. The core principle of the ASU is that an entity should recognize revenue for the transfer of goods or services equal to the amount that it expects to be entitled to receive for those goods or services. It also requires additional disclosures about the nature, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. The amended guidance permits the initial application to be applied either retrospectively to each prior reporting period presented, or retrospectively with a cumulative effect adjustment made at the date of initial application. The guidance is effective for annual and interim periods beginning after December 15, 2016, with early adoption prohibited. The Company is currently evaluating the adoption method and the impact of adopting this guidance on its consolidated financial statements.

Income Tax, Policy [Policy Text Block]

INCOME TAXES

The Company maintains a full valuation allowance on its deferred tax assets. Accordingly, the Company has not recorded a benefit or provision for income taxes. The Company recognizes interest and penalties related to the underpayment of income taxes in income tax expense. No unrecognized tax benefits, interest or penalties were accrued at April 4, 2015. The Company’s U.S. federal net operating losses have occurred since 1998 and as such, tax years subject to potential tax examination could apply from that date because carrying-back net operating loss opens the relevant year to audit.

Standard Product Warranty, Policy [Policy Text Block]

WARRANTY

Based on the examination of historical returns and other information it deems critical, the Company estimates that a current charge to income will need to be provided in order to cover future warranty obligations for products sold during the year. The accrued liability for warranty costs is included in Accrued liabilities in the condensed consolidated balance sheets. Changes in the Company’s product warranty reserve are as follows:

	Three months ended
	April 4, 2015			March 29, 2014
Beginning balance	$	237		$	383
Net (release) addition charged to Cost of sales		(35	)		51
Claims processed		(27	)		(101	)
Ending balance	$	175		$	333

Reclassification, Policy [Policy Text Block]

RECLASSIFICATIONS

Certain prior period amounts have been reclassified to conform to the current presentation.

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Note 7 - Legal Proceedings

3 Months Ended

Apr. 04, 2015

Disclosure Text Block Supplement [Abstract]

Legal Matters and Contingencies [Text Block]

7.     LEGAL PROCEEDINGS

    The Company is a party to ordinary course litigation arising out of the operation of its business. The Company accrues for a loss contingency when it determines that it is probable, after consultation with counsel, that a liability has been incurred and the amount of such loss can be reasonably estimated. The Company believes that the ultimate resolution of such ordinary course litigation, either individually or in the aggregate, will not have a material adverse effect on its consolidated financial condition, results of operations, or cash flows.

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Note 8 - Bank Borrowings Under Credit Facility

3 Months Ended

Apr. 04, 2015

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

8.     BANK BORROWINGS UNDER CREDIT FACILITY

On October 24, 2014, the Company terminated a three-year $11,000 revolving credit facility with PNC Bank, N.A which had been scheduled to expire in 2016 and entered into a Loan and Security Agreement with Silicon Valley Bank (the “SVB Loan Agreement”). The SVB Loan Agreement provides the Company with a two-year revolving credit facility of $10,000 that expires on October 24, 2016. The Credit Agreement enables borrowings based upon 85% of eligible accounts receivable and is secured by certain insured accounts receivable and substantially all of the Company’s other assets. The SVB Loan Agreement requires compliance with certain covenants, including minimum EBITDA (as defined in the SVB Loan Agreement) and quick ratio levels, in addition to certain capital expenditure limits. The interest rate on the outstanding balance under the SVB Loan Agreement is Prime plus 0.5%. The SVB Loan Agreement contains a fee for any unused portion of the facility. As of April 4, 2015, the Company was in compliance with its covenants and $4,000 was outstanding under the SVB Loan Agreement.

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Note 1 - Summary of Significant Accounting Policies (Tables)

3 Months Ended

Apr. 04, 2015

Accounting Policies [Abstract]

Schedule of Product Warranty Liability [Table Text Block]

	Three months ended
	April 4, 2015			March 29, 2014
Beginning balance	$	237		$	383
Net (release) addition charged to Cost of sales		(35	)		51
Claims processed		(27	)		(101	)
Ending balance	$	175		$	333

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Note 1 - Summary of Significant Accounting Policies (Details) (USD $)	Apr. 04, 2015
Accounting Policies [Abstract]
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	$ 0

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Note 4 - Inventories (Details) - Summary of Inventories (USD $) In Thousands, unless otherwise specified	Apr. 04, 2015	Dec. 31, 2014
Summary of Inventories [Abstract]
Raw materials	$ 3,536	$ 4,584
Work in process	2,677	3,052
Finished goods	5,245	6,208
Total	$ 11,458	$ 13,844

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Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Apr. 04, 2015	Mar. 29, 2014
Net loss	$ (5,025)	$ (11,750)
Unrealized loss on marketable securities		(37)
Effect of net recognized gain on marketable securities reclassified to Interest and other (expense) income, net		(1,160)
Comprehensive loss	$ (5,025)	$ (12,947)

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Note 4 - Inventories

3 Months Ended

Apr. 04, 2015

Inventory Disclosure [Abstract]

Inventory Disclosure [Text Block]

4.     Inventories

Inventories are stated at the lower of cost (first-in, first-out method) or market.

Inventories consist of the following:

	April 4, 2015		December 31, 2014
Raw materials	$	3,536	$	4,584
Work in process		2,677		3,052
Finished goods		5,245		6,208
Total	$	11,458	$	13,844

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Note 5 - Stock Based Compensation (Details) (USD $) Share data in Thousands, except Per Share data, unless otherwise specified	12 Months Ended	1 Months Ended	0 Months Ended	3 Months Ended		12 Months Ended
	Dec. 31, 2014	Feb. 28, 2015	Feb. 13, 2013	Apr. 04, 2015	Mar. 29, 2014	Dec. 31, 2012
Note 5 - Stock Based Compensation (Details) [Line Items]
Number of Equity Compensation Plans				1
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense (in Dollars)	$ 0
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized (in Dollars)				4,514,000
Restricted Stock Units (RSUs) [Member] | Officers and Key Employees [Member]
Note 5 - Stock Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period		264
Restricted Stock Units (RSUs) [Member]
Note 5 - Stock Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value (in Dollars per share)			$ 1.05
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				1 year 73 days
Employee Stock Option [Member]
Note 5 - Stock Based Compensation (Details) [Line Items]
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition				2 years 109 days
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term				5 years	5 years
The 2015 Plan [Member]
Note 5 - Stock Based Compensation (Details) [Line Items]
Deferred Compensation Arrangement with Individual, Common Stock Reserved for Future Issuance				10,000
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant				1,820
Employee Stock Purchase Plan [Member]
Note 5 - Stock Based Compensation (Details) [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period				1
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term						1 year

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Note 6 - Loss Per Share (Tables)

3 Months Ended

Apr. 04, 2015

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	Three months ended
	April 4, 2015		March 29, 2014
Weighted average common shares for basic loss per share		87,108		84,763
Effect of dilutive securities:
Stock options (*)		-		-
Unvested restricted stock units (*)		-		-
Adjusted weighted average shares for diluted loss per share		87,108		84,763

Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]

	Three months ended
	April 4, 2015		March 29, 2014
Stock options		1,105		1,340
Unvested restricted stock units		5,054		3,646