SOURCE: ANADIGICS, Inc.

February 17, 2011 07:00 ET

ANADIGICS Announces Fourth Quarter and Full Year 2010 Results

Quarterly Net Sales of $60.2 Million; up 44.1% Year-Over-Year; Full Year $216.7 Million; up 54.3% Over 2009; Quarterly GAAP EPS of $0.05; Non-GAAP EPS of $0.07; Full Year GAAP EPS $0.02; Non-GAAP EPS $0.11

WARREN, NJ--(Marketwire - February 17, 2011) - ANADIGICS, Inc. (NASDAQ: ANAD), a leading provider of semiconductor solutions in the broadband wireless and wireline communications markets, reported fourth quarter 2010 net sales of $60.2 million, a decrease of 1.7% sequentially and an increase of 44.1% from the fourth quarter of 2009. Revenue for the full year 2010 grew 54.3% over 2009 to $216.7 million.

As of December 31, 2010, cash, cash equivalents and short and long-term marketable securities totaled $106.1 million, an increase of $13.6 million over 2009.

Net income for the fourth quarter of 2010 was $3.4 million, or $0.05 per diluted share. Net income for 2010 was $1.3 million, or $0.02 per share. Non-GAAP net income for the fourth quarter of 2010 was $4.9 million, or $0.07 per share. Non-GAAP net income for the year was $7.7 million or $0.11 per diluted share.

"I am very proud of our accomplishments during this past year in which we significantly increased revenue by 54.3%, consisting of 72% growth in our Wireless business and 20% in Broadband. We also exceeded our goals for both profitability and free cash flow," said Mario Rivas, president and chief executive officer. "Our strong performance in 2010 is a result of successful execution on the strategic initiatives that we outlined at the beginning of the year. Looking forward, we remain well positioned to benefit from the continued growth in the 3G and 4G markets as we strive to expand our market share at new and existing customers, execute on design wins and continue to introduce superior new products."

Outlook for the First Quarter 2011

Tom Shields, chief financial officer, commented, "We are seeing indications of greater than normal seasonality in the first quarter of 2011 primarily due to softness in China and through our distribution channels relating to excess inventories, coupled with a continued market correction expected to further impact our Cable and WiMax revenue. As a result, we currently anticipate total revenue to be in the range of $42 million to $44 million. Net loss per share on a GAAP basis for the first quarter of 2011 is expected to be ($0.11) to ($0.12). Non-GAAP loss per share, excluding non-cash stock compensation expense, is expected to be between ($0.07) and ($0.08). The GAAP net loss and non-GAAP loss per share are based on an estimated weighted average outstanding common share count of 69.2 million."

The statements regarding the Company's anticipated future performance are forward-looking and actual results may differ materially. Please see safe harbor statement at the end of this press release.

This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP net income or loss and non-GAAP income or loss per share. Management uses non-GAAP net income or loss and non-GAAP income or loss per share to evaluate the Company's operating and financial performance in light of business objectives, for planning purposes, when publicly providing our business outlook and to facilitate period-to-period comparisons. ANADIGICS believes that these measures are useful to investors because they enhance investors' ability to review the Company's business from the same perspective as the Company's management and facilitate comparisons of this period's results with prior periods. These non-GAAP measures exclude charges related to stock-based compensation, restructuring and impairment charges and recoveries, auction rate securities' adjustments, the refund of certain R&D tax credits and non-comparative charges in 2009 resulting from the settlement of a commercial dispute with a customer and inventory reserves associated with reduced demand. Non-GAAP measures are used by some investors when assessing the ongoing operating and financial performance of our Company. These financial measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Management acknowledges that stock-based compensation is a recurring cost and is an important part of our employee's compensation and impacts their performance. However the expense is non-cash in nature and there are various valuation methodologies and assumptions used in determining stock-based compensation that may be unrelated to operations, such as volatility and current interest rates. The presentation of the additional information should not be considered a substitute for net income or loss or income or loss per share prepared in accordance with GAAP.

Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP measures as compared to the most directly comparable GAAP financial measures are (i) they may not be comparable to similarly titled measures used by other companies in ANADIGICS industry, and (ii) they exclude financial information that some may consider important in evaluating our performance. We compensate for these limitations by providing reconciliations of reported net income or loss and income or loss per share to non-GAAP net income or net loss and non-GAAP income or loss per share, respectively, within this press release.

Conference Call

ANADIGICS' senior management will conduct a conference call today at 8:30 AM Eastern time. A live audio Webcast will be available at www.anadigics.com/investors. A recording of the call will be available approximately two hours after the end of the call on the ANADIGICS Web site or by dialing 800-642-1687 conference ID 42515180 (available until February 24, 2011).

Recent Highlights

February 9, 2011 - ANADIGICS Maximizes Wireless Network Connectivity With New Power Amplifier

February 7, 2011 - ANADIGICS Expands Industry's Most Efficient 4G LTE Power Amplifier Family

February 3, 2011 - ANADIGICS Introduces New Power Amplifier for WiMax Customer Premises Equipment

January 21, 2011 - ANADIGICS Joins Exclusive NASDAQ Global Select Market

December 15, 2010 - ANADIGICS Provides LTE PA for LG's First 4G USB Wireless Modem

November 18, 2010 - Samsung Selects ANADIGICS Power Amplifiers for New Galaxy Tab Devices

About ANADIGICS, Inc.

ANADIGICS, Inc. (NASDAQ: ANAD) is a leading provider of semiconductor solutions in the growing broadband wireless and wireline communications markets. The Company's products include power amplifiers, tuner integrated circuits, active splitters, line amplifiers, and other components, which can be sold individually or packaged as integrated radio frequency and front end modules.

Safe Harbor Statement

Except for historical information contained herein, this press release contains projections and other forward-looking statements (as that term is defined in the Securities Exchange Act of 1934, as amended). These projections and forward-looking statements reflect the Company's current views with respect to future events and financial performance and can generally be identified as such because the context of the statement will include words such as "believe," "anticipate," "expect," or words of similar import. Similarly, statements that describe our future plans, objectives, estimates or goals are forward-looking statements. No assurances can be given, however, that these events will occur or that these projections will be achieved and actual results and developments could differ materially from those projected as a result of certain factors. Important factors that could cause actual results and developments to be materially different from those expressed or implied by such projections and forward-looking statements include those factors detailed from time to time in our reports filed with the Securities and Exchange Commission, including the Company's Annual Report on Form 10-K for the year ended December 31, 2009, and those discussed elsewhere herein.



ANADIGICS, INC.
Consolidated Statements of Operations
(Amounts in thousands, except per share amounts)


                           Three months ended       Twelve months ended
                        ------------------------  ------------------------
                        December 31, December 31, December 31, December 31,
                           2010         2009         2010         2009
                        -----------  -----------  -----------  -----------
                        (unaudited)  (unaudited)  (unaudited)

Net sales               $    60,229  $    41,810  $   216,714  $   140,484
Cost of sales                37,920       30,132      140,869      120,326
                        -----------  -----------  -----------  -----------
Gross profit                 22,309       11,678       75,845       20,158
Research and
 development expenses        12,799       12,943       50,120       45,969
Selling and
 administrative
 expenses                     6,992        6,829       27,977       26,914
Restructuring and
 impairment (recovery)
 charges                          -            -       (1,717)       2,598
                        -----------  -----------  -----------  -----------
Operating income (loss)       2,518       (8,094)        (535)     (55,323)
Interest income                 492          104          784        1,134
Interest expense                (25)        (131)        (154)      (1,897)
Other income (expense),
 net                            380          138          868       (1,318)
                        -----------  -----------  -----------  -----------
Income (loss) before
 income taxes                 3,365       (7,983)         963      (57,404)
Benefit from income
 taxes                            -            0         (297)        (321)
                        -----------  -----------  -----------  -----------
Net income (loss)       $     3,365  $    (7,983) $     1,260  $   (57,083)
                        ===========  ===========  ===========  ===========

Net earnings (loss) per
 share
                        -----------  -----------  -----------  -----------
Basic                   $      0.05  $     (0.13) $      0.02  $     (0.92)
                        ===========  ===========  ===========  ===========
Diluted                 $      0.05  $     (0.13) $      0.02  $     (0.92)
                        ===========  ===========  ===========  ===========

Basic shares
 outstanding                 65,911       62,920       65,084       62,372
                        ===========  ===========  ===========  ===========
Basic & dilutive shares
 outstanding                 68,711       62,920       67,554       62,372
                        ===========  ===========  ===========  ===========

Unaudited Reconciliation of GAAP to Non-GAAP Financial Measures

GAAP net income (loss)  $     3,365  $    (7,983) $     1,260  $   (57,083)
Stock compensation
 expense
   Cost of sales                421          498        2,173        2,441
   Research and
    development                 666          991        3,228        4,706
   Selling and
    administrative              864        1,198        3,834        5,030
Other non-GAAP
 adjustments
   Cost of sales (1)              -            -            -        5,289
   Research and
    development (2)               -        1,755            -        1,755
   Selling and
    administrative (3)            -          370            -          370
Auction rate securities
 adjustments (4)               (429)         (38)        (808)       1,492
Restructuring and
 impairment (recovery)
 charges                          -            -       (1,717)       2,598
Benefit for income
 taxes                            -            -         (297)        (321)
                        -----------  -----------  -----------  -----------
Non-GAAP net income
 (loss)                 $     4,887  $    (3,209) $     7,673  $   (33,723)
                        ===========  ===========  ===========  ===========

Non-GAAP earnings
 (loss) per share (*)
Basic                   $      0.07  $     (0.05) $      0.12  $     (0.54)
                        ===========  ===========  ===========  ===========
Diluted                 $      0.07  $     (0.05) $      0.11  $      0.54
                        ===========  ===========  ===========  ===========

(*) Calculated using related GAAP shares outstanding

(1) Twelve months ended December 31, 2009 included $3,879 for the October
    26, 2009 settlement of a commercial dispute with a customer recorded in
    the third quarter and $1,410 inventory reserves charge for products
    with reduced demand recorded in first quarter of 2009.
(2) Three and twelve months ended December 31, 2009 included executive
    officer separation costs of $1,755 for which $382 was non-cash.
(3) Three and twelve months ended December 31, 2009 included officer
    separation costs of $370 for which $35 was non-cash.
(4) Auction rate securities adjustments include impairments, recoveries
    upon sale and interest accretion.





ANADIGICS, INC.
Condensed Consolidated Balance Sheets
(Amounts in thousands)


                                                 December 31,  December 31,
                                                     2010        2009 (*)
                                                 ------------  ------------
Assets                                            (unaudited)
Current assets:
   Cash and cash equivalents                     $     97,129  $     83,172
   Accounts receivable                                 35,299        20,013
   Inventory                                           20,734        18,250
   Prepaid expenses and other current assets            3,319         2,503
                                                 ------------  ------------
Total current assets                                  156,481       123,938

Marketable securities                                   8,964         9,354
Plant and equipment, net                               68,119        80,884
Other assets                                              248           276
                                                 ------------  ------------
                                                 $    233,812  $    214,452
                                                 ============  ============

Liabilities and stockholders' equity
Current liabilities:
   Accounts payable                              $     17,968  $     11,287
   Accrued liabilities                                 10,191        10,208
   Accrued restructuring costs                              -            55
                                                 ------------  ------------
Total current liabilities                              28,159        21,550

Other long-term liabilities                             2,689         3,844
Stockholders' equity                                  202,964       189,058
                                                 ------------  ------------
                                                 $    233,812  $    214,452
                                                 ============  ============

(*) The condensed balance sheet at December 31, 2009 has been derived from
    the audited financial statements at such date but does not include all
    the information and footnotes required by U.S. generally accepted
    accounting principles for complete financial statements.

Contact Information

  • Investor Relations
    Thomas Shields
    ANADIGICS, Inc.
    141 Mt. Bethel Road
    Warren, NJ 07059
    Tel: +1 908 412-5995
    E-mail: Email Contact