2 November 2011

Anadigics’ sales rise 4.7% in Q3 to $37.3m

For third-quarter 2011, GaAs-based broadband wireless and wireline communications component maker Anadigics Inc of Warren, NJ, USA has reported net sales of $37.3m, down 39.2% on $61.3m a year ago but up 4.7% on $35.6m last quarter, driven by increased sales at key wireless OEMs. The top customers were Samsung, ZTE, RIM, Cisco, Huawei, LG, World Peace Group, and Richardson Electronics.

After falling by 29% in Q2 to $25.7m (mostly due to falling revenue with RIM), Wireless revenue rebounded by 9.1% to $28m in Q3 (rising from 72% of total revenue to 75%). This is attributed to further increases in market share with a number of key wireless customers, offsetting the further decline with RIM.

Specifically, market share with Anadigics’ largest customer Samsung has doubled year-on-year (via Anadigics being in a number of new smartphones such as the Galaxy S2, WAVE 3, Galaxy Tab 4G, and Galaxy Note). Overall, Anadigics’ CDMA market share was just a couple of percent a year ago and is now 16%, while WCDMA has gone from 3% to 15% in the last four quarters, according to president & CEO Ron Michels. Anadigics has seen most traction lately with WCDMA and LTE design wins, rather than CDMA, “which is good for us, because it’s where our strength is and it’s where things are reading down the road, with all of our multi-band parts that we’re developing,” he adds.

However, after rising by 36% in Q2 to $9.9m, Broadband revenue fell back by 6.1% to $9.3m in Q3 (dropping from 28% of total revenue to 25%). This was primarily due to WiMAX falling from $1.5m to about $1m, while all other product lines were relatively flat ($2.3m for set-top boxes, $1.3m for WiFi, $4.7m for cable infrastructure).

Gross margin was 20% (level with last quarter), with fab utilization remaining in the low 50s. On a non-GAAP basis, net loss has been cut from $9.4m last quarter to $7.8m, due mainly to operating expenses dropping by $1.1m to $15.5m. However, this loss compares with a profit of $4.4m a year ago.

Cash used in operating activities was $800,000 and capital expenditures were $1.5m. During the quarter, cash, cash equivalents and short- and long-term marketable securities fell from $103.4m to $100.6m.

“We continued to make notable progress with the largest reference design partner [Qualcomm] on next-generation product development,” says Michels. “Additionally, we are expanding our served available market with new product introductions, including PADs [power amplifier and duplexers], MMPAs [multi-mode power amplifiers] and dual-band PAs, which will be the driving force behind our future growth,” he adds.

See related items:

Anadigics’ revenue falls 18% in Q2 to $35.6m

Anadigics’ sales fall 28% in Q1 to $43.5m

Anadigics’ sales fall less-than-expected 1.7% in Q4 to $60m

Anadigics’ revenue grows 18.6% in Q3 to $61.3m

Anadigics enters profit as sales rise 18.7% in Q2 to $51.7m

Tags: Anadigics

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