ANADIGICS, INC REPORTS FOURTH QUARTER SALES OF $14.5 MILLION, INCOME BEFORE TAXES OF $2.8 MILLION AND NET INCOME OF $0.32 PER SHARE; 1995 Net Sales $51.5 Million - Up 48%; 1995 Net Income per share $0.96 vs.$0.34 in 1994.

WARREN, N.J.--(BUSINESS WIRE)--Jan. 30, 1996--ANADIGICS, INC. (Nasdaq: ANAD) today reported financial results for the fourth quarter and year ended December 31, 1995. Net sales rose 42% to $14.5 million in the 1995 fourth quarter, up from $10.2 million in the 1994 fourth quarter. The strong increase in sales is attributable primarily to increases in Cellular IC sales in addition to strong growth in Fiber Optic and CATV IC sales, somewhat offset by a decrease in DBS sales. Cellular sales represented 25% of 1995 fourth quarter net sales, compared to 13% of net sales in the year ago quarter.

1995 fourth quarter net income totalled $2.6 million compared to $971,000 in the year ago period. On a per share basis, net income increased to $0.32 based upon 8.3 million weighted average common shares outstanding, compared to 1994 fourth quarter net income of $0.17 based upon 5.8 million weighted average shares outstanding. Net income for the 1995 fourth quarter was favorably impacted by a lower effective tax rate of 5% versus 15% in the 1994 fourth quarter. The lower effective income tax rate was attributable to an adjustment of the 1995 effective tax rate to 17% from 23%.

The gross profit margin was 49.1% in the 1995 fourth quarter, compared to 48.6% in the 1994 fourth quarter and 52.6% in the 1995 third quarter. The decrease in the gross profit margin from the third to fourth quarter of 1995 is primarily attributable to lower prices partially offset by favorable volume leverage as well as increased DBS assembly costs associated with ramp-up of a new subcontractor.

Research & development expenses totalled $3.0 million, or 20.7% of 1995 fourth quarter net sales compared to $2.6 million or 25.4% of net sales in the 1994 fourth quarter. Selling & administrative expenses totalled $1.7 million, or 12.0% of net sales in the 1995 fourth quarter compared to $1.1 million, or 10.6% of net sales in the year-ago quarter.

Ron Rosenzweig, President and Chief Executive Officer of ANADIGICS, commented, "We were very pleased to have achieved record revenues of $14.5 million in the fourth quarter of 1995. We saw the benefits of our strategy to diversify our product offerings, achieving a more balanced contribution to revenue from our four major product lines. CATV and Fiber Optic sales were at record levels and DBS sales were at the holiday seasonal high point, while sales of cellular products to the U.S. market declined somewhat compared to third quarter sales.

"As a result of our substantial investment in research and development this year, we are beginning to ramp up production on three major new products. During 1995 cellular R&D has focused on the GSM market and we are pleased to be ramping up production of our first GaAs IC power amplifier for the GSM market. We are expanding our cellular presence into cellular infrastructure by starting production of two GaAs IC receiver chips for dual mode (TDMA/AMPS) cellular base stations - a new market for our GaAs ICs. We are also starting production of GaAs IC amplifiers for the 750 MHz hybrid fiber-coax CATV distribution systems that will enable us to increase our presence as a supplier to the CATV industry. We would expect that over the next couple of quarters the gross margin may be impacted by start-up costs and manufacturing inefficiencies, normally associated with new product introductions. All of these products have target customers that are significant suppliers in their industry sector. We expect first significant revenue contributions from these products to commence in the second quarter of 1996 assuming no unforeseen production problems, cancellation of orders or customer delay of product shipments," Mr. Rosenzweig added.

For the year, net sales totaled $51.5 million, an increase of 48% over 1994 net sales of $34.8 million. Sales of Cellular ICs drove this increase in revenues with Cellular sales of $15.1 million, or 29% of net sales, up significantly from $1.6 million, or 4.6% of net sales in 1994. Fiber Optic ICs sales were also up sharply, increasing 55% in 1995. Net income increased almost three-fold to $7.3 million or $0.96 per share on a 38% increase in weighted average shares outstanding. In 1994 net income was $1.9 million or $0.34 per share.

Mr. Rosenzweig commented, "We are very pleased that in our first year as a public company we achieved record sales and profitability. Our revenue base grew 48% and our operating profit margin doubled to approximately 16% of net revenues from just under 8% in 1994. We firmly established ANADIGICS' position with our GaAS IC technology as a significant supplier of power amplifiers and receivers to the rapidly expanding cellular telephone marketplace. We also met with success in expanding our Fiber Optic and CATV product sales. Fiber Optic IC sales increased 55% in 1995 and sales of CATV ICs also experienced strong year over year results with sales rising 33%. The only area of disappointment was DBS IC sales where we experienced a sales decline. We are targeting new customers in 1996 with ICs having improved performance that we believe have the opportunity of increasing DBS sales."

Research & development totalled $11.7 million in 1995, an increase of 28%. The increase in research and development is primarily attributable to increased spending related to ICs for cellular and PCS applications. R&D declined as a percentage of revenues to 23% from 26% in 1994. Capital expenditures for the year were $10.5 million, compared to $6.6 million in 1994.

Operating income in 1995 was $8.1 million, or 16% of net sales, up significantly from 1994 operating income of $2.7 million, or 8% of sales. The increase in operating income primarily reflects higher sales and gross margin.

ANADIGICS, INC. is a leading supplier of gallium arsenide integrated circuits used to receive and transmit radio and microwave frequency signals in a variety of high-volume consumer communications applications. The Company primarily focuses on supplying to the cable television, direct broadcast satellite television, fiber optic telecommunications, and wireless communication markets. ANADIGICS's objective is to be the leading supplier of RF/microwave solutions using GaAs integrated circuits. -0-

                            ANADIGICS, Inc.
                     CONDENSED STATEMENTS OF INCOME
            (Amounts in thousands, except per share amounts)

                         Three Months Ended         Year Ended
                            December 31,            December 31,
                         1995        1994        1995         1994
                           (unaudited)              (audited)

Net sales             $  14,470   $  10,202  $   51,460   $   34,832

Cost of sales             7,359       5,241      24,995       18,454

Gross profit              7,111       4,961      26,465       16,378

Research and development
 expenses                 2,997       2,592      11,733        9,195

Selling and
 administrative expenses  1,734       1,086       6,640        4,530

Operating income          2,380       1,283       8,092        2,653

Interest income
 (expense), net             403        (142)        728         (488)

Income before income
 taxes                    2,783       1,141       8,820        2,165

Provision for income
 taxes                      138         170       1,527          300

Net income             $  2,645     $   971    $  7,293    $   1,865

Net income per share   $   0.32     $  0.17    $   0.96    $    0.34

Weighted average
 common shares
 outstanding          8,334,301   5,801,852   7,583,163    5,506,953

-0-

                               ANADIGICS, INC.
                           CONDENSED BALANCE SHEETS
                            (Dollars in thousands)

                                    December 31, 1995    December 31, 1994
Assets                                   (note 1)              (note 1)
Current assets
 Cash and cash equivalents            $   6,394                $ 4,564
 Marketable securities                   22,788                      0
 Accounts receivable, net                 7,379                  5,864
 Inventory                                8,735                  7,983
 Prepaid expenses and
  other current assets                      981                    496
Deferred taxes                              184                      0
Total current assets                     46,461                 18,907

Plant and equipment at cost              34,537                 23,035
Less accumulated depreciation and
 amortization                           (16,060)               (11,517)
Total net plant and equipment            18,477                 11,518
Deferred taxes                            1,032                   --
Deposits and other assets                   280                    460

Total assets                          $  66,250                $30,885

Liabilities and stockholders' equity

Current liabilities
 Accounts payable                     $   2,671                $ 1,588
 Accrued liabilities                      4,027                  2,041
 Income taxes payable                     2,092                    100
 Notes payable                              -                    1,896
 Current maturities of capital lease
   obligations and long-term debt         1,718                  1,933
Total current liabilities                10,508                  7,558
Capital lease obligation, less
 current portion                          1,919                  1,980
Long-term debt, less current portion         -                     827

Total stockholders' equity               53,823                 20,520

Total liabilities and
 stockholders' equity                 $  66,250                $30,885

Note 1: The condensed balance sheets at December 31, 1994 and
1995 have been derived from the audited financial statements at that
date but do not include all the information and footnotes required by
generally accepted accounting principles for complete financial
statements.

CONTACT: John Lyons 

Chief Financial Officer

908-412-5972

or

Michele Katz/Jason Langer

Press: Lee Foley/Gina Gardner

Morgen-Walke Associates, Inc.

212/850-5600