ANADIGICS 2Q Net Sales Up 49%

(Business News & Technology News, 25 Jul 2008)

ANADIGICS Inc., a provider of semiconductor solutions in the rapidly growing broadband wireless and wireline communications markets, reported record second quarter 2008 net sales of $80.5 million, up 8.2 percent compared with net sales of $74.4 million in the prior quarter, and an increase of 49.4 percent compared to net sales of $53.9 million in the year ago quarter.

Net income was $6 million, or $0.10 per share, compared with $3.9 million, or $0.07 per share, in the prior quarter and net income of $1.9 million, or $0.03 per share, in the year ago quarter. Pro forma income for the second quarter 2008, which excludes non-cash stock compensation expense, discontinued operations and an impairment charge of $0.6 million on the company's investment in auction rate securities, was $11.6 million, or $0.18 per diluted share, compared with $9.2 million, or $0.15 per diluted share, in the prior quarter and $5.7 million, or $0.10 per diluted share, in the year ago quarter.

"Our second quarter 2008 results were driven by strong sequential revenue growth in broadband for both Wi-Fi and CATV including initial production shipments of our new digital tuner, FiOS and DOCSIS 3.0 products," says Dr. Bami Bastani, President and CEO. "As we enter the third quarter 2008, Broadband will continue to have strong momentum, which will partially offset an expected decline in wireless as certain of our customers have lowered their demand expectations and are reducing inventory levels. However, we believe this to be temporary as design-in activity has increased and therefore, are aggressively pursuing our capacity expansion plans in China to meet future demand."

The company reported that it will accelerate previous plans announced on April 11, 2007 to expand wafer capacity in China. Such accelerated plans include increasing the total investment in the build-out of the 6in gallium arsenide (GaAs) integrated circuit (IC) wafer fabrication facility in Kunshan, China from $49.88 million to approximately $100 million. Such investments are expected to provide the completion of building construction by October 2008 and expanded wafer capacity commencing with the third quarter 2009. Additionally, the Company has initiated the immediate recruiting of required resources and will incur certain operating costs relative to the wafer fabrication facility in the third quarter 2008, which are estimated at $1.0 million. ANADIGICS expects to have the ability to fund the China investments from internally generated operating cash flows and cash on-hand. However, if advantageous, the company will explore other available and alternative means of financing.

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