ANADIGICS Reports First Quarter 2001 Results; Revenue of $28.5 Million and EPS Loss of $0.15 in Line With Expectations.Business Editors WARREN, N.J.--(BUSINESS WIRE)--April 23, 2001 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 reported 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 $28.5 million for the first quarter ended March 31, 2001, compared with $43.0 million reported in the first quarter of 2000. Sequentially, net sales were down 7% from the fourth quarter 2000, in line with expectations. The company reported a net loss of $4.6 million and a loss per share of $0.15, compared with net income of $5.5 million and diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of of $0.18 reported in the prior year. The net loss reported in the first quarter included a pretax inventory charge of $3.5 million, predominantly in the datacom fiber products. Excluding the inventory charge, the net loss was $2.3 million or $0.08 per share. Gross margin in the first quarter was 25.6% (excluding the inventory charge, gross margin was 37.9%). "Business conditions have remained soft throughout the communications markets, particularly within broadband," remarked Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "However, we believe the Company's outlook remains positive as we continue to invest in new products." In the quarter, Broadband revenues were $22.2 million (cable: $19.1 million and fiber: $3.1 million), representing a 13% increase from the year-ago quarter and a 7% decline from the fourth quarter. Wireless revenues were $6.3 million, down 73% from the year-ago quarter and 9% from the prior quarter. "Design win activity across all product lines is strong and we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that these new products will be the major drivers of future growth," continued Dr. Bastani. "In wireless, our InGaP HBT HBT Heterojunction Bipolar Transistor HBT HyCult Biotechnology (Uden, The Netherlands) HBT Hanbury-Brown-Twiss (interferometer) HBT Herring Bone Twill HBT Heflex Bioengineering Test GSM and 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. power amplifier Power amplifier The final stage in multistage amplifiers, such as audio amplifiers and radio transmitters, designed to deliver appreciable power to the load. module design activity momentum has increased with handset manufacturers in Asia. In fiber, we completed the acquisition of Telcom Devices Corporation, which further increases ANADIGICS' IC content in the fiber optical component market. In cable, the number of customers requesting samples of the PicoTuner(TM) has more than doubled since last quarter." The Company's balance sheet remains strong. Cash and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has were $163 million at March 31, 2001 before the $28 million purchase acquisition of Telcom Devices on April 2. Days sales outstanding In accountancy, Days Sales Outstanding is a company's average collection period. A low figure indicates that the company collects its outstanding receivables quickly. Typically it is looked at either quarterly or yearly (90 or 365 days). was 53 days (versus 60 days reported last quarter), an improvement of 7 days. OUTLOOK The current outlook for the second quarter 2001 calls for revenues of $18.5 million and an 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. loss of $0.24 before acquisition-related charges. The lower revenues from previous estimates reflect the current market conditions. HIGHLIGHTS OF THE QUARTER - ACQUISITION - Telcom Devices Corporation On April 2, 2001, the Company acquired Telcom Devices Corporation of Camarillo, California Camarillo is a city in Ventura County, California, United States. The population was 57,077 at the 2000 census. A January 1, 2006 California Department of Finance estimate lists the population at 64,034. The Ventura Freeway (U.S. Route 101) is the city's primary thoroughfare. , a leader in manufacturing InP (indium indium (ĭn`dēəm), a metallic chemical element; symbol In; at. no. 49; at. wt. 114.82; m.p. 156.6°C;; b.p. about 2,080°C;; sp. gr. 7.31 at 20°C;; valence +1, +2, or +3. phosphide phosphide Any of a class of chemical compounds in which phosphorous is combined with a metal. Phosphides exhibit a wide variety of chemical and physical properties. Phosphides that are rich in metal have high melting points and are hard, brittle, and chemically inert; these ) -based photodiodes for the telecommunication and data communication markets. The acquisition of Telcom Devices is a key step in ANADIGICS' fiber strategy to provide high performance, chip-set solutions by adding long wavelength PIN photodiodes and unique packaging capabilities to its fiber product line. - NEW PRODUCT - InGaP HBT TIA (1) (Telecommunications Industry Association, Arlington, VA, www.tiaonline.org) A membership organization founded in 1988 that sets telecommunications standards worldwide. It was originally an EIA working group that was spun off and merged with the U.S. for OC-192 Fiber Networks On March 19, 2001, the Company announced a new multi-feature TIA (transimpedance amplifier) for SONET OC-192 (10Gb/s) and DWDM (Dense WDM) The term given to wavelength division multiplexing (WDM) when significantly more channels were being added. Since WDM is increasingly more "dense" all the time, both terms are used synonymously. See WDM. DWDM - wavelength division multiplexing fiber networks. The second in a series of five planned InGaP (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. ) HBT (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. ) TIAs, this latest product offers the added feature of an offset voltage control. These five planned products leverage a common RF platform, utilizing ANADIGICS' leading InGaP HBT process. - NEW PRODUCT - Broadband Linear Amplifier A linear amplifier is an electronic circuit whose output is proportional to its input, but capable of delivering more power into a load. The term usually refers to a type of radio-frequency (RF) power amplifier, some of which have output power measured in kilowatts, and are used in On February 28, 2001, the Company introduced a new high performance balanced linear amplifier targeted for residential gateway, set-top box The cable TV box that sits on "top" of the TV "set," although it is often located several feet away in an equipment rack. The set-top box descrambles the premium channels and provides a tuner for the higher cable numbers that very old TVs did not support. , and other digital interactive cable devices. This device serves as an LNA LNA Low-Noise Amplifier LNA Locked Nucleic Acid (Link Technologies Ltd.) LNA Linolenic Acid LNA Licensed Nursing Assistant LNA Launch Numerical Aperture LNA Ladies National Association LNA Leading National Advertisers, Inc. (low noise amplifier) for use in advanced digital set-top boxes by compensating for the loss in signal level within the box. Additionally, the device can be employed in cellular telephone base stations; driver amplifiers; CATV (Community Antenna TV) The original name for cable TV. It used a single antenna at the highest location in the community in order to deliver a quality signal to homes in areas with hilly terrain or other interference. fiber optic receiver/distribution amplifiers; and CATV drop amplifiers. ANADIGICS' senior management will conduct a conference call today at 10:00 AM Eastern time. A live audio Webcast will be available at www.anadigics.com. 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 (pass code 670744). ANADIGICS, Inc. (Nasdaq: ANAD) 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 RFIC Radio Frequency Integrated Circuit RFIC Radio Frequency Interface Chip ) solutions for growing broadband 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, and reduce 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 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 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, 2000. Forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company "believes", "anticipates", "expects", 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 per share and per share amounts)
Three Months Ended
------------------
Mar 31, 2001 April 2, 2000
------------ -------------
(unaudited) (unaudited)
Net sales $ 28,520 $ 43,005
Cost of sales 21,205 21,833
------------ -------------
Gross profit 7,315 21,172
Research and development expenses 10,051 9,789
Selling and administrative expenses 6,640 6,137
------------ -------------
Operating (loss) income (9,376) 5,246
Interest income, net 2,362 2,499
(Loss) gain on sale of equipment (60) 1,049
------------ -------------
(Loss) Income before income taxes (7,074) 8,794
(Benefit) provision for income taxes (2,476) 3,254
------------ -------------
Net (loss) income $ (4,598) $ 5,540
============ =============
Basic (loss) earnings per share $ (0.15) $ 0.19
============ =============
Weighted average common
shares outstanding 30,063,509 29,277,268
============ =============
Diluted (loss) earnings per share $ (0.15) $ 0.18
============ =============
Weighted average common and
dilutive securities outstanding 30,063,509 31,629,984
============ =============
ANADIGICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share and per share amounts)
March 31, 2001 December 31, 2000(a)
-------------- --------------------
Assets (unaudited)
Current assets:
Cash and cash equivalents $92,606 $95,116
Marketable securities 42,705 53,254
Accounts receivable 16,682 21,794
Inventory 22,774 22,969
Prepaid expenses and other
current assets 4,843 3,475
Deferred taxes 3,035 3,035
-------------- -------------------
Total current assets 182,645 199,643
Marketable securities 27,864 17,791
Property and equipment:
Equipment and furniture 134,757 137,819
Leasehold improvements 33,144 32,767
Projects in process 16,016 19,083
Less accumulated depreciation and
amortization 81,004 83,034
-------------- -------------------
102,913 106,635
Other assets 5,253 5,302
Deferred taxes 25,608 23,102
-------------- -------------------
$344,283 $352,473
============== ===================
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable $7,506 $10,985
Accrued liabilities 6,266 6,824
Accrued restructuring costs 521 597
Current maturities of long-term
debt 1,000 1,000
Current maturities of capital
lease obligations 140 250
-------------- -------------------
Total current liabilities 15,433 19,656
Capital lease obligations,
less current portion
Other long-term liabilities 2,084 1,985
Long-term debt, less current
portion 1,750 2,000
Stockholders' equity
Total stockholders' equity 325,016 328,832
-------------- -------------------
$344,283 $352,473
============== ===================
(a) The condensed balance sheet at December 31, 2000 has been
derived from the audited financial statements at such date but
does not include all the information and footnotes required by
generally accepted accounting principles for complete
financial statements.
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