Quarterly Net Sales of $18.4 Million; a
sequential decrease of 11.7% Infrastructure Revenues grow 23.3%
sequentially to $12.0 Million Non-GAAP Gross Margin Increases
Sequentially by 455 Basis Points Quarterly GAAP EPS ($0.06);
Non-GAAP EPS ($0.04)
ANADIGICS, Inc. (Nasdaq:ANAD) (the "Company"), a world leader in
radio frequency solutions, reported first quarter 2015 net sales of
$18.4 million, a sequential decrease of 11.7% and in line with
prior guidance.
GAAP net loss for the first quarter of 2015 was $5.0 million, or
($0.06) per diluted share, a sequential improvement of 7.6%.
Non-GAAP net loss for the first quarter of 2015 was $3.8 million,
or ($0.04) per share, representing a sequential improvement of
18.6%.
As of April 4, 2015, cash and cash equivalents totaled $17.0
million, or net cash of $13.0 million, after excluding $4.0 million
drawn under the Company's credit facility.
"We are very pleased with the 23.3% sequential increase in
Infrastructure revenues in the first quarter. The resulting
financial performance was enabled by our ongoing strategic shift to
an Infrastructure business model," said Ron Michels, chairman &
CEO. "While we anticipate some near-term market headwinds in
Infrastructure, we believe this will be temporary, and our current
outlook for long-term growth remains positive."
"In line with our continued migration to a leaner Infrastructure
business model, we are implementing the next phase of cost
improvement measures designed to match our supply capability with
demand," said Terry Gallagher, executive vice president and CFO.
"These actions are expected to enable a more streamlined operating
structure that lays the foundation for ANADIGICS' long-term
improvement."
ANADIGICS' financial outlook for Q2:
- We anticipate a sequential revenue decline of 10-15% driven
principally by a decline in Mobile of approximately 20-25% in
accordance with our shift to Infrastructure. Infrastructure
revenues are expected to decline sequentially by 7-9% following
higher-than-expected growth in Q1 2015.
- Non-GAAP gross margin is expected to decline sequentially by
100-300 basis points on the lower expected revenue.
- Operating expenses are expected to be 5-7% lower,
sequentially.
The statements regarding the Company's anticipated future
performance are forward-looking in nature and actual results may
differ materially. All forward-looking statements are made
expressly subject to the Safe Harbor Statement set forth 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 and loss
per share. Management uses these measures 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 amounts related to stock-based
compensation, marketable securities' adjustments, certain
non-recurring charges to cost of goods and restructuring charges.
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. To
listen to the conference via telephone, please call 866-459-1514,
conference ID 29337546. A recording of the call will be available
approximately two hours after the end of the call on the ANADIGICS
Web site at www.anadigics.com/investors or by
dialing 855-859-2056 conference ID 29337546 (available until May
12, 2015).
Recent Highlights
April 14 - ANADIGICS WiFi Infrastructure Amplifier Powers New
High-Performance TRENDnet Router April 2 - ANADIGICS Expands
Small-Cell Wireless Infrastructure Power Amplifier Family March 19
- ANADIGICS WiFi Power Amplifier Enables Video Transmission System
in DJI Phantom 2 Vision Series of Drones March 2 - Huawei Selects
ANADIGICS WiFi FEIC for Honor 4X Smartphone
About ANADIGICS, Inc.
ANADIGICS, Inc. (Nasdaq:ANAD) (the "Company")
designs and manufactures innovative radio frequency (RF) solutions
for the growing CATV infrastructure, small-cell, WiFi, and cellular
markets. Headquartered in Warren, NJ, ANADIGICS offers RF products
with exceptional reliability, performance and integration to
deliver a unique competitive advantage to OEMs and ODMs for
infrastructure and mobile applications. The Company's award-winning
solutions include line amplifiers, upstream amplifiers, power
amplifiers, front-end ICs, front-end modules and other RF
components. For more information, visit
www.anadigics.com
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", "goal," "objective," "plan" 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. You are cautioned that
any such forward-looking statements are not guarantees of future
performance and involve risk and uncertainties, as well as
assumptions that if they materialize or prove incorrect, could
cause results to differ materially from those expressed or implied
by such forward-looking statements. Further, all statements, other
than statements of historical fact, are statements that could be
deemed forward-looking statements. We assume no obligation and do
not intend to update these forward-looking statements, except as
may be required by law. 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, 2014, and those discussed elsewhere herein.
ANADIGICS,
INC. |
Consolidated Statements
of Operations |
(Amounts in thousands,
except per share amounts) |
|
|
|
|
Three months
ended |
|
April 4, 2015 |
March 29, 2014 |
|
Unaudited |
Unaudited |
|
|
|
Net sales |
$18,446 |
$23,271 |
Cost of sales |
14,438 |
21,000 |
Gross profit |
4,008 |
2,271 |
Research and development
expenses |
5,211 |
8,576 |
Selling and
administrative expenses |
3,803 |
5,126 |
Restructuring
charges |
-- |
1,451 |
Operating loss |
(5,006) |
(12,882) |
Interest and other income
(expense), net |
(19) |
1,132 |
Net loss |
($5,025) |
($11,750) |
|
|
|
Net loss per share: |
|
|
Basic and diluted |
($0.06) |
($0.14) |
|
|
|
Basic and dilutive shares outstanding |
87,108 |
84,763 |
|
|
|
Unaudited Reconciliation
of GAAP to Non-GAAP Financial Measures |
|
|
|
GAAP net loss |
($5,025) |
($11,750) |
Stock compensation expense |
|
|
Cost of sales |
274 |
276 |
Research and
development |
453 |
554 |
Selling and
administrative |
469 |
1,013 |
Marketable securities redemptions and
accretion (1) |
-- |
(1,160) |
Restructuring charges (2) |
-- |
1,451 |
Non-GAAP net loss |
($3,829) |
($9,616) |
|
|
|
Non-GAAP loss per share (*): |
|
|
Basic and
diluted |
($0.04) |
($0.11) |
|
|
|
Supplemental Information |
|
|
Infrastructure |
$12,010 |
$9,227 |
Mobile |
6,436 |
14,044 |
Net Sales |
$18,446 |
$23,271 |
|
|
|
Depreciation |
$2,226 |
$3,332 |
|
|
|
(*) Calculated using related GAAP
shares outstanding |
|
|
|
(1) Marketable securities
adjustments include realized gains upon redemptions. |
(2) Restructuring for the three
months ended March 29, 2014 includes $1,451 workforce
reduction. |
|
|
|
ANADIGICS, INC. |
|
|
Condensed Consolidated
Balance Sheets |
(Amounts in
thousands) |
|
|
|
|
|
April 4, 2015 |
December 31, 2014
(*) |
Assets |
Unaudited |
|
|
|
|
Current assets: |
|
|
Cash and cash equivalents |
$17,042 |
$18,430 |
Accounts receivable |
5,540 |
5,335 |
Inventory |
11,458 |
13,844 |
Prepaid expenses and other
current assets |
3,299 |
2,721 |
Assets held for sale |
335 |
335 |
Total current assets |
37,674 |
40,665 |
|
|
|
Plant and equipment, net |
15,003 |
17,171 |
Other assets |
117 |
180 |
|
$52,794 |
$58,016 |
|
|
|
Liabilities and
stockholders' equity |
|
|
|
|
Current liabilities: |
|
|
Accounts payable |
$5,410 |
$5,913 |
Accrued liabilities |
3,059 |
3,419 |
Accrued restructuring
costs |
514 |
904 |
Bank borrowings |
4,000 |
4,000 |
Total current liabilities |
12,983 |
14,236 |
|
|
|
Other long-term liabilities |
982 |
1,122 |
|
|
|
Stockholders' equity |
38,829 |
42,658 |
|
$52,794 |
$58,016 |
|
|
|
(*) The condensed balance sheet
at December 31, 2014 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: Investor Relations
Terry Gallagher
Executive Vice President and CFO
ANADIGICS, Inc.
141 Mt. Bethel Road
Warren, NJ 07059
Tel: +1 908 668-5000
E-mail: tgallagher@anadigics.com
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