Loss per share of $0.12 on GAAP basis and $0.08 on a Pro Forma basis
Net loss calculated in accordance with generally accepted accounting principles in the U.S. ("GAAP") for the quarter was $4.6 million, or $0.12 per share, compared with a GAAP net loss of $3.9 million, or $0.11 per share, in the prior quarter, and a GAAP net loss of $11.5 million, or $0.34 per share, in the year ago quarter. Pro forma net loss for the quarter, excluding non-cash stock compensation expense, was $3.2 million or $0.08 per share.
As of April 1, 2006, cash and short and long-term marketable securities totaled $134.5 million compared with $86.4 million as of December 31, 2005. The net increase of $48.1 million reflects net proceeds of $53.2 million from the underwritten public offering of 10,446,200 common shares during the first quarter of 2006, less $5.2 million of cash used to fund working capital and capital expenditures.
"We increased our net sales 64% compared to the year ago quarter and 7% sequentially, despite typical seasonality in the sector. Our growth was driven by strong demand for our GSM/EDGE/WCDMA PAs, WLAN and Tuner ICs," said Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "Our market share expansion and increased content in these key growth markets represent a powerful combination which we expect will allow us to continue our positive revenue and gross margin trajectory in 2006."
This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP, or pro forma, net loss and non-GAAP, or pro forma, loss per share. Management uses non-GAAP net loss and non-GAAP loss per share to evaluate the company's operating and financial performance in light of business objectives and for planning purposes. 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 charges related to equity-based compensation. These financial measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. The presentation of this additional information should not be considered a substitute for net loss or loss per share prepared in accordance with GAAP. Reconciliations of reported net loss and reported loss per share to non-GAAP net loss and non-GAAP loss per share, respectively, are included at the end of this press release.
Outlook for the Second Quarter 2006
We expect net sales for the second quarter of 2006 to approximate $39.3 million, up 10% sequentially and up 64% over the year ago quarter. Loss per share for the second quarter of 2006 is expected to be $0.07 on a GAAP basis and $0.03 on a pro forma basis.
RECENT HIGHLIGHTS
March 29, 2006: ANADIGICS Completes Public Offering of Common Stock
February 16, 2006: ANADIGICS Introduces High Performance Power Amplifier
for WiBro Applications
February 15, 2006: ANADIGICS' WCDMA (UMTS) & EDGE Power Amplifier Modules
Adopted for Advanced Reference Design by QUALCOMM
February 14, 2006: ANADIGICS Announces World's First Penta-Band,
Multi-Mode 3G (GPRS/EDGE/HSDPA) Power Amplifier
February 13, 2006: ANADIGICS Introduces World's Most Efficient WCDMA Power
Amplifiers
February 7, 2006: ANADIGICS to Showcase New Cutting-Edge 3G Solutions at
the 2006 3GSM World Congress
CONFERENCE CALL
ANADIGICS' senior management will conduct a conference call today at 8:30 AM Eastern time. A live audio Webcast will be available at http://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) 283-8183 (available until May 1).
ANADIGICS, Inc. (NASDAQ: ANAD) is a leading provider of radio frequency integrated circuits and radio frequency front end solutions in the rapidly growing wireless handset and broadband communications markets. The Company's products include power amplifiers, tuner integrated circuits, active splitters and other components, which can be sold individually or packaged as integrated RF modules.
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 customers' forecasts of product demand, timely product and process development and protection of the associated intellectual property rights, individual product pricing pressure, variation in production yield, changes in estimated product lives, difficulties in obtaining components and assembly and test services needed for production of integrated circuits, change in economic conditions of the various markets the Company serves, as well as the 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 for the year ended December 31, 2005. Actual results could differ materially from the Company's forward-looking statements. These forward-looking statements can generally be identified as such because the context of the statement will include words such as "believe", "anticipate", "expect", or words of similar import. Similarly, statements that describe the Company's future plans, objectives, estimates, or goals are forward-looking statements. Important factors that could cause actual results and developments to be materially different from those expressed or implied by such statements include those factors discussed herein.
ANADIGICS, INC.
Consolidated Statements of Operations
(Unaudited)
(Amounts in thousands, except per share amounts)
Three months ended
April 1, 2006 April 2, 2005
Net sales $35,721 $ 21,773
Cost of sales 26,284 19,252
Gross profit 9,437 2,521
Research and development expenses 8,159 7,862
Selling and administrative
expenses 5,493 5,552
Restructuring and other charges - (120)
Operating loss (4,215) (10,773)
Interest income 866 577
Interest expense (1,288) (1,249)
Other expense - (6)
Net loss $(4,637) $(11,451)
Basic and diluted net loss per
share $(0.12) $(0.34)
Weighted average common and
dilutive securities outstanding 38,376 33,579
Unaudited Reconciliation of GAAP
to Non-GAAP Financial Measures
GAAP net loss $(4,637) $(11,451)
Less Stock compensation expense
Cost of sales 309 135
Research and development 571 282
Selling, general and
administrative 569 230
Pro forma net loss $(3,188) $(10,804)
Pro forma basic and diluted net
loss per share $ (0.08) $ (0.32)
ANADIGICS, INC.
Condensed Consolidated Balance Sheets
(Amounts in Thousands)
April 1, 2006 December 31, 2005
Assets (Unaudited)
Current assets:
Cash and cash equivalents $ 19,282 $ 11,891
Marketable securities 114,244 70,364
Accounts receivable 20,295 18,755
Inventory 18,428 16,009
Prepaid expenses and other
current assets 4,687 2,188
Total current assets 176,936 119,207
Marketable securities 996 4,102
Plant and equipment, net 36,310 36,307
Goodwill and other intangibles,
net of amortization 6,010 6,044
Other assets 1,831 2,613
$222,083 $168,273
Liabilities and stockholders'
equity
Current liabilities:
Accounts payable $ 18,720 $ 15,519
Accrued liabilities 3,916 4,672
Accrued restructuring costs 27 40
Current portion of long-term
debt 46,700 46,700
Capital lease obligations 296 269
Total current liabilities 69,659 67,200
Other long-term liabilities 3,218 3,175
Long-term debt 38,000 38,000
Long-term capital lease
obligations 1,691 1,763
Stockholders' equity 109,515 58,135
$222,083 $168,273
CONTACT: Brian Ribeiro, Corporate Contact, +1-908-668-5000, Fax -
+1-908-412-5978, or Thomas Shields, Investor Relations, +1-908-412-5995,
Email Contact, both of ANADIGICS, Inc.
Web site: http://www.anadigics.com/