ANADIGICS Announces Record Sales and Profits for Fourth Quarter: Net Sales Up 78% Over Fourth Quarter 1998 on 149% Rise in Wireless Sales.Business Editors WARREN, N.J.--(BUSINESS WIRE)--Jan. 28, 2000 Quarterly Net Income Hits $4.4 Million, $0.22 EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. ANADIGICS, Inc. (Nasdaq:ANAD ANAD Anorexia Nervosa and Associated Disorders ANAD National Association of Anorexia Nervosa and Associated Disorders ANAD Anniston Army Depot ANAD Asociación Nacional de Abogados Democráticos (National Association of Democratic Lawyers, Mexico) ) today announced record net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $40.1 million for the fourth quarter ended December December: see month. 31, 1999. Net sales rose 78% over the $22.6 million reported in the fourth quarter of the previous year. Net income for the fourth quarter was $4.4 million or $0.22 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share compared with a net loss in the year-ago quarter. Net sales were up 13% sequentially over the $35.5 million in net sales reported in the third quarter of 1999. Net income in the 1999 fourth quarter increased 83% to $4.4 million over the $2.4 million or $0.15 per diluted share (excluding special charges) recorded in the 1999 third quarter. Net sales for full-year 1999 of $131.1 million were a record high for the Company, reflecting a 52% increase over 1998 net sales of $86.1 million. Net income for full-year 1999 excluding one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. special charges was $11.6 million or $0.69 per diluted share. This compares with a net loss for 1998 of $199,000, or $0.01 per basic share, excluding one-time special charges. &uot;This was a year of tremendous success for ANADIGICS,&uot; said Dr. Bami BAMI Cardiology A study–Biochemical markers for Acute Myocardial Infarction that compared serum troponin I levels with CK-MB levels for diagnosing acute MI. See Cardiac profile guideline, Troponin I. Bastani, ANADIGICS' President and Chief Executive Officer. &uot;Our growth was fueled by a very strong wireless handset The part of the telephone that contains the speaker and the microphone. On a desktop phone, the part you hold in your hand is the handset. On a cellphone, the entire phone is the handset. See multihandset cordless and headset. market that drove increased demand for our power amplifiers Power amplifier The final stage in multistage amplifiers, such as audio amplifiers and radio transmitters, designed to deliver appreciable power to the load. . The introduction of our new 3-volt HBT HBT Heterojunction Bipolar Transistor HBT HyCult Biotechnology (Uden, The Netherlands) HBT Hanbury-Brown-Twiss (interferometer) HBT Herring Bone Twill HBT Heflex Bioengineering Test power amplifiers and RF switches positions ANADIGICS to capture an even larger share of this growing market in the future.&uot; Cable, wireless and fiber all contributed to this successful year. For the full year, wireless products led with a 77% year-over-year increase, and 44% sequential growth on stronger than expected sales in both Europe and the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Cable products rose 38% year-over-year and 7% sequentially. Fiber products yielded 33% year-over-year growth. Gross margin continued to show both year-over-year and sequential improvement. For the quarter, gross margin was 48.1%, up 130 basis points sequentially over the 46.8% reported last quarter. For the same period last year, gross margin was 32.8%, excluding one time special charges. The sequential improvement was primarily attributable to the Company's migration to its 6-inch GaAs fab. On September 21, 1999 the Company successfully transitioned from its previous 4-inch fabrication fabrication (fab´rikā´sh  n),n the construction or making of a restoration. facility to its state-of-the-art 6-inch fab. &uot;We added significant depth and breadth to our technological expertise,&uot; said Dr. Bastani. &uot;We continue to reach new levels of success in our relationships with well-established customers, including Ericsson, Motorola and Scientific-Atlanta. We recently launched our new 24-volt line amplifier and tuner An electronic part of a radio or TV that locks on to a selected carrier frequency (station, channel) and filters out the audio and video signals for amplification and display. IC for the cable market. These developments and our plans to approximately double current production capacity at our 6-inch fab set the stage for ANADIGICS to advance to new levels of competition--and to win.&uot; DESIGN WIN FOR RF SWITCHES IN CDMA (Code Division Multiple Access) A method for transmitting simultaneous signals over a shared portion of the spectrum. The foremost application of CDMA is the digital cellular phone technology from QUALCOMM that operates in the 800 MHz band and 1.9 GHz PCS band. PHONE ANADIGICS has been added to the preferred supplier list for RF switches by a world-leading US manufacturer of CDMA handsets. The Company has received its first high-volume production order from this customer for the single-supply 3-volt RF switches with shipments commencing in Q1 2000. THREE-FOR-TWO STOCK SPLIT In a separate release today, the Company announced that its Board of Directors has declared a three-for-two stock split in the form of a stock dividend. The record date for the stock split is February 10, 2000 and the effective date is February 29, 2000. HIGHLIGHTS OF THE QUARTER - 3-Volt HBT PA samples shipped to wireless customers. The Company announced the shipment of its first high-efficiency InGaP HBT power amplifier samples to major wireless handset manufacturers. The introduction of these HBT power amplifiers more than doubles the available market for ANADIGICS' wireless products. - Launch of world's first 6-inch InGaP HBT wafer (1) A small, thin continuous-loop magnetic tape cartridge that has been used from time to time for data storage and specialized applications. (2) The base unit of chip making. It is a slice taken from a salami-like silicon crystal ingot up to 12" (300mm) in diameter. fab. ANADIGICS achieved its goal of internal InGaP HBT (indium gallium phosphide Indium gallium phosphide (InGaP) is a semiconductor composed of indium, gallium and phosphorus. It is used in high-power and high-frequency electronics because of its superior electron velocity with respect to the more common semiconductors silicon and gallium arsenide. heterojunction bipolar transistor The heterojunction bipolar transistor (HBT) is an improvement of the bipolar junction transistor (BJT) that can handle signals of very high frequencies up to several hundred GHz. It is common in modern ultrafast circuits, mostly radio-frequency (RF) systems. ) process capability. The Company began InGaP HBT wafer manufacturing in addition to GaAs MESFET See FET. and PHEMT See FET. wafer production at its 6-inch manufacturing facility. - 3Volt tri-mode dual-band PA driver/3Volt PA introduced. The Company announced a new single supply 3V Power Amplifier and a Power Amplifier driver that meet the requirements for higher integration, smaller sized packages, lower costs, and lower power consumption in advanced dual-band multi-mode phones. - Power Amplifier patent awarded. ANADIGICS was granted another US patent for its single-chip power amplifier (PA) architecture. The Company has been awarded a total of 18 patents and has five patents pending. - New DOCSIS-compliant integrated tuner enables high-speed data, video, and voice over cable. ANADIGICS introduced a low power, high performance integrated data tuner that conserves valuable printed circuit board real estate while enabling high-speed data, video, and voice over cable. It features one of the lowest power consumption available in an integrated tuner for cable set-top, cable modem cable modem Modem used to convert analog data signals to digital form and vise versa, for transmission or receipt over cable television lines, especially for connecting to the Internet. , and cable telephony See cable telephone. applications. - ANADIGICS passes 1 million milestone in shipments of tuner ICs to Motorola. The Company announced that in 1999, it shipped more than 1 million GaAs QAM tuner A QAM tuner is a device present in some digital televisions and similar devices which enables direct reception of digital cable channels without the use of a set-top box. QAM stands for "quadrature amplitude modulation," the format by which digital cable channels are encoded and ICs for implementation in Motorola's cable modem products. ANADIGICS' DOCSIS-compliant 64/256 QAM (1) (Quality Assessment Measurement) A system used to measure and analyze voice transmission. (2) (Quadrature Amplitude Modulation) A modulation technique that employs both phase modulation (PM) and amplitude modulation (AM). chipset A group of chips designed to work as a unit to perform a function. For example, a modem chipset contains all the primary circuits for transmitting and receiving. A PC chipset provides the electronic interfaces between all subsystems (see PC chipset for illustration). performs the functions of a double-conversion cable television tuner, features industry-leading linearity and noise figure, and delivers a superior bit-error-rate than discrete single or double conversion solutions over a wide dynamic range. - Design centers open in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and the UK. ANADIGICS expanded its Wireless and Cable design capacity and strengthened its ability to deliver leading-edge RFIC RFIC Radio Frequency Integrated Circuit RFIC Radio Frequency Interface Chip solutions with the opening of its second and third remote design centers. ANADIGICS designs and manufactures radio frequency integrated circuit integrated circuit (IC), electronic circuit built on a semiconductor substrate, usually one of single-crystal silicon. The circuit, often called a chip, is packaged in a hermetically sealed case or a nonhermetic plastic capsule, with leads extending from it for (RFIC) solutions for growing broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). and wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. markets. The Company's innovative high frequency RFICs enable manufacturers of communications equipment to enhance overall system performance, manufacturing cost, and time to market. By utilizing state-of-the-art manufacturing processes for its RFICs, ANADIGICS achieves the high-volume, and cost-effective cost-effective, n the minimal expenditure of dollars, time, and other elements necessary to achieve the health care result deemed necessary and appropriate. products required by leading companies in its targeted high-growth communications markets. ANADIGICS was the first GaAs IC manufacturer to receive ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. 9001 certification. Except for historical information contained herein, this press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that involve risks and uncertainties, including, but not limited to, order rescheduling or cancellation, changes in estimated product lives, timely product and process development, individual product pricing pressure, variation in production yield, difficulties in obtaining components and assembly services needed for production of integrated circuits Integrated circuits Miniature electronic circuits produced within and upon a single semiconductor crystal, usually silicon. Integrated circuits range in complexity from simple logic circuits and amplifiers, about 1/20 in. (1. , change in economic conditions of the various markets the Company and its customers serve, as well as other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including the report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1998. Forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company &uot;believes&uot;, &uot;anticipates&uot;, &uot;expects&uot;, or words of similar import. Similarly, statements that describe the Company's future plans, objectives, estimates, or goals are forward-looking statements.
ANADIGICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share amounts)
Three months ended Year ended
------------------------ ------------------------
Dec. 31, Dec. 31, Dec. 31, Dec. 31,
1999 1998 1999 1998
---------- ---------- ---------- ----------
(unaudited) (unaudited)
Net sales $ 40,117 $ 22,574 $ 131,159 $ 86,075
Cost of sales 20,809 17,838 75,820 66,228
---------- ---------- ---------- ----------
Gross profit 19,308 4,736 55,339 19,847
Research and
development
expenses 9,398 4,739 29,658 18,824
Selling and
administrative
expenses 5,257 3,437 19,092 12,926
Restructuring
charge 4,669 (441)(1) 7,126
---------- ---------- ---------- ----------
Operating income
(loss) 4,653 (8,109) 7,030 (19,029)
Interest income,
net 1,796 511 3,293 2,296
Provision for
litigation
settlement 6,925
---------- ---------- ---------- ----------
Income (loss)
before income
taxes 6,449 (7,598) 3,398 (16,733)
Provision
(benefit)
for income
taxes 2,064 (3,749) 810 (7,175)
---------- ---------- ---------- ----------
Net income
(loss) $ 4,385 $ (3,849) $ 2,588(1) $ (9,558)
========== ========== ========== ==========
Basic earnings
(loss) per
share 0.24 $ (0.26) $ 0.16 (1) $ (0.65)
========== ========== ========== ==========
Weighted
average
common shares
outstanding 18,326,707 14,738,689 15,735,199 14,723,941
========== ========== ========== ==========
Diluted earnings
(loss) per
share 0.22 $ (0.26) $ 0.15(1) $ (0.65)
========== ========== ========== ==========
Weighted
average common
and dilutive
securities
outstanding 19,699,426 14,738,689 16,802,608 14,723,941
========== ========== ========== ==========
(1) Excluding accelerated depreciation expense of $5,320 (associated
with the planned closing of the Company's existing wafer
fabrication facility), the provision for litigation settlement of
$6,925, and the reversal of the restructuring charge of $441, the
Company reported net income of $11,579 and diluted earnings per
share of $0.69 during the year ended December 31, 1999.
ANADIGICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)
Dec. 31, Dec. 31,
1999 1998
--------- ---------
Assets
Current assets:
Cash and cash equivalents $ 149,895 $ 23,987
Marketable securities 14,452 16,923
Accounts receivable, net 25,151 11,848
Inventory 10,334 8,729
Prepaid expenses and other current assets 2,708 2,531
Insurance settlement receivable 5,325
Deferred taxes 13,465 4,345
--------- ---------
Total current assets 221,330 68,363
Marketable securities 7,404 1,486
Property and equipment:
Equipment and furniture 115,195 71,625
Leasehold improvements 27,553 15,717
Projects in process 8,525 34,286
Less accumulated depreciation and
amortization 66,383 44,199
--------- ---------
84,890 77,429
Other assets 2,164 865
Deferred taxes 1,822 5,955
--------- ---------
Total assets $ 317,610 $ 154,098
========= =========
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 15,901 $ 6,138
Accrued litigation settlement costs 11,761
Accrued liabilities 6,577 2,306
Accrued restructuring costs 993 1,567
Current maturities of long-term debt 1,000 1,000
Current maturities of capital lease
obligations 151 229
--------- ---------
Total current liabilities 36,383 11,240
Capital lease obligations, less current
portion 32 183
Other long-term liabilities 1,546 868
Long-term debt, less current portion 3,000 4,000
--------- ---------
Total liabilities 40,961 16,291
Stockholders' equity
Common Stock, $0.01 par value, 68,000,000
shares authorized, 19,235,743 and
14,738,356 issued and outstanding at
December 31, 1999 and 1998, respectively 192 147
Additional paid-in capital 296,593 160,215
Accumulated deficit (20,010) (22,598)
Accumulated other comprehensive income
(loss) (126) 43
--------- ---------
Total stockholders' equity 276,649 137,807
--------- ---------
Total liabilities and stockholders' equity $ 317,610 $ 154,098
========= =========
- The condensed balance sheets at December 31, 1999 and 1998 have
been derived from the audited financial statements at such date
but do not include all the information and footnotes required by
generally accepted accounting principles for complete financial
statements.
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