GAAP net loss for the second quarter of 2009 was $14.3 million, or ($0.23) per share. Non-GAAP net loss for the second quarter of 2009 was $11.3 million, or ($0.18) per share. Non-GAAP financial measures exclude charges of $3.0 million, or ($0.05) per share, associated with stock-based compensation. The details of the Non-GAAP adjustments are available in the accompanied financial schedules.
"This has been an important quarter for ANADIGICS. We have implemented many changes within the company focused on operational excellence and the results demonstrate that we are on the right track. We achieved sequential revenue growth coupled with better than expected gross margins," remarked Mario Rivas, President and Chief Executive Officer of ANADIGICS. "We are pleased to see strong revenue growth in wireless products driven by our tier 1 handset customers and we see significant opportunities not only with our current product offering but with new product solutions currently under development. Our differentiated products remain the key factor in driving a high level of customer engagement in design activity positioning the company for a stronger second half of the year."
Outlook for the Third Quarter 2009
Net sales for the third quarter of 2009 are estimated to increase sequentially over the second quarter of 2009 by approximately 5% to 10%. Net loss per share on a GAAP basis for the third quarter is expected to be approximately ($0.20) to ($0.21). Non-GAAP loss per share, excluding non-cash stock compensation expense, is expected to be approximately ($0.15) to ($0.16).
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 charges, impairment of auction rate securities and non-comparative charges in the first quarter of 2009 resulting from inventory reserves associated with reduced demand. Non-GAAP measures are used by some investors when assessing the ongoing operating and financial performance of our Company. These financial measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Management acknowledges that stock-based compensation is a recurring cost and is an important part of our employee's compensation and impacts their performance. However the expense is non-cash in nature and there are various valuation methodologies and assumptions used in determining stock-based compensation that may be unrelated to operations, such as volatility and current interest rates. The presentation of the additional information should not be considered a substitute for net income or loss or income or loss per share prepared in accordance with GAAP.
Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP measures as compared to the most directly comparable GAAP financial measures are (i) they may not be comparable to similarly titled measures used by other companies in ANADIGICS industry, and (ii) they exclude financial information that some may consider important in evaluating our performance. We compensate for these limitations by providing reconciliations of reported net income or loss and income or loss per share to non-GAAP net income or net loss and non-GAAP income or loss per share, respectively, within this press release.
Conference Call
ANADIGICS' senior management will conduct a conference call today at 5:00 PM Eastern Time. A live audio Webcast will be available at www.anadigics.com/investors. A recording of the call will be available approximately two hours after the end of the call on the ANADIGICS Web site or by dialing 800-642-1687 conference ID 19084476 (available until August 4, 2009).
Recent Highlights
July 23, 2009 - Samsung Leverages ANADIGICS' WCDMA PA Portfolio to Power New Omnia HD and Memoir Handsets
July 22, 2009 - ANADIGICS Announces New High Power, Dual-Band Front End IC for WiFi in Mobile Electronics
June 23, 2009 - ANADIGICS' Broad Portfolio of 3G PAs Power LG Electronics' New ARENA Handsets
June 9, 2009 - ANADIGICS' Innovative New WCDMA/HSPA Family of Power Amplifiers Simplify 3G Mobile Device Design
June 8, 2009 - ANADIGICS Appoints New Vice President of Operations
June 2, 2009 - ANADIGICS' Technology Leadership Rewarded With Four New Patents
May 20, 2009 - ANADIGICS Launches New WiMAX 4G Power Amplifier To Drive Evolution from Fixed-Point to Mobile Services
May 13, 2009 - ANADIGICS Wins China Telecommunication Technology Innovation Award
About ANADIGICS, Inc.
ANADIGICS, Inc. (
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, 2008, and those discussed elsewhere herein.
ANADIGICS, INC.
Consolidated Statements of Operations
(Amounts in thousands, except per share amounts, unaudited)
Three months ended Six months ended
--------- --------- --------- ---------
July 4, June 28, July 4, June 28,
2009 2008 2009 2008
--------- --------- --------- ---------
Net sales $ 31,463 $ 80,493 $ 61,958 $ 154,862
Cost of sales 28,703 50,573 57,948 98,337
--------- --------- --------- ---------
Gross profit 2,760 29,920 4,010 56,525
Research and development
expenses 10,376 14,797 22,001 29,128
Selling and administrative
expenses 6,338 9,441 13,770 18,321
Restructuring charge - - 2,598 -
--------- --------- --------- ---------
Operating (loss) income (13,954) 5,682 (34,359) 9,076
Interest income 287 1,281 846 3,219
Interest expense (591) (591) (1,182) (1,182)
Other expense - (324) (1,545) (1,136)
--------- --------- --------- ---------
Net (loss) income $ (14,258) $ 6,048 $ (36,240) $ 9,977
========= ========= ========= =========
Net (loss) earnings per share
--------- --------- --------- ---------
Basic $ (0.23) $ 0.10 $ (0.58) $ 0.17
========= ========= ========= =========
Diluted $ (0.23) $ 0.10 $ (0.58) $ 0.16
========= ========= ========= =========
Basic shares outstanding 62,209 60,027 61,976 59,669
========= ========= ========= =========
Basic & dilutive shares
outstanding 62,209 69,351 61,976 68,596
========= ========= ========= =========
Unaudited Reconciliation of
GAAP to Non-GAAP Financial
Measures
GAAP net (loss) income $ (14,258) $ 6,048 $ (36,240) $ 9,977
Stock compensation expense in
continuing operations
Cost of sales 617 1,026 1,342 1,752
Research and development 1,117 1,905 2,548 3,801
Selling and administrative 1,243 2,010 2,688 3,794
Cost of sales adjustment (1) - - 1,410 -
Auction rate securities
impairment - 614 1,565 1,437
Restructuring charge - - 2,598 -
--------- --------- --------- ---------
Non-GAAP net (loss) income $ (11,281) $ 11,603 $ (24,089) $ 20,761
========= ========= ========= =========
Non-GAAP earnings (loss) per
share *
Basic $ (0.18) $ 0.19 $ (0.39) $ 0.35
========= ========= ========= =========
Diluted $ (0.18) $ 0.18 $ (0.39) $ 0.32
========= ========= ========= =========
(*) Calculated using related GAAP shares outstanding
(1) Six months ended July 4, 2009 includes $1,410 inventory reserves charge
for products with reduced demand recorded in first quarter of 2009.
ANADIGICS, INC.
Condensed Consolidated Balance Sheets
(Amounts in thousands)
July 4, December 31,
2009 2008
------------ ------------
Assets Unaudited
Current assets:
Cash and cash equivalents $ 96,743 $ 123,552
Marketable securities 23,216 13,340
Accounts receivable 16,757 25,384
Inventory 22,320 33,578
Prepaid expenses and other current assets 4,115 3,121
------------ ------------
Total current assets 163,151 198,975
Marketable securities 8,438 8,832
Plant and equipment, net 89,519 95,671
Other assets 293 299
------------ ------------
$ 261,401 $ 303,777
============ ============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 11,965 $ 18,267
Accrued liabilities 6,671 13,203
Accrued restructuring costs 433 1,165
Convertible notes 38,000 38,000
------------ ------------
Total current liabilities 57,069 70,635
Other long-term liabilities 3,079 3,134
Stockholders' equity 201,253 230,008
------------ ------------
$ 261,401 $ 303,777
============ ============
* The condensed balance sheet at December 31, 2008 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.
