News

28 April 2010

 

Anadigics revenue rises 4.1% to $43.5m as loss is cut further

For first-quarter 2010, GaAs-based wireless and broadband communications component maker Anadigics Inc of Warren, NJ, USA has reported a fourth consecutive quarter of revenue growth, to $43.5m ($30.4m wireless and $13.1m broadband).

This is up 42.7% on $30.5m a year ago and up 4.1% from last quarter’s $41.8m (despite the industry’s seasonal softness, and surpassing expectations of being flat sequentially) driven by 22% sequential growth in the wireless product line due to the high level of handset design wins secured in second-half 2009, which continued to move into production.

“Our new product releases and design-win activity remains strong as we are gaining increased market share in wireless and across our customer base,” comments president & CEO Mario Rivas.

The core drivers of continued growth are strength in the growing 3G and 4G wireless markets, which is being further fueled by Anadigics’ top customers gaining market share in their respective markets as well as the increasing power amplifier content in 3G handset, continues Rivas.

There was also better-than-expected growth in WiMAX, dual-band wideband CDMA, and cable business (which specifically benefited from recent infrastructure build-out in developing countries, which is expected to be consistent for the rest of this year). Anadigics is also gaining market share in the China market with some of the leading handset suppliers in TD-SCDMA, says Rivas.

Gross margin was 32.3%, exceeding the expected 29–30% and up from 29.1% last quarter, due mainly to better product mix.

On a non-GAAP basis, net loss has been cut from $12.8m a year ago and $3.2m last quarter to $2.7m.

“Over the last year, we increased our revenue by approximately $13m, or over 40%, and reduced our non-GAAP loss by $10.1m, nearly double the percentage rate of the improvement in revenue,” comments executive VP & chief financial officer Tom Shields.

During the quarter, cash, cash equivalents and short and long-term marketable securities fell further from $92.5m to $90.4m after using $2.1m principally to fund accounts receivable on the increased net sales.

For second-quarter 2010, Anadigics expects revenue of $48.7m (up 12% sequentially), driven by 20% growth in wireless sales (again, due to demand for 3G wideband CDMA products). Target gross margin is 35%.

“We anticipate crossing another key milestone for the company by generating a non-GAAP profit in the second quarter of 2010 by capitalizing on the operating leverage created from our product mix and manufacturing operations,” says Shields. Excluding non-cash stock compensation expense, non-GAAP income should be $0.1m.

See related items:

Anadigics’ sales rise 13.9% in Q4/2009

Anadigics upbeat on future wireless markets

Samsung helps Anadigics to revenue gain

Anadigics’ revenue falls by a third, driven by WLAN and cable shortfall

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