Anadigics' first quarter 2014 adjusted loss came in at $0.11 per
share, which was narrower than the Zacks Consensus Estimate of a
loss of $0.12. Anadigics expects sequential growth in its wireless
segment as new products offset the decline in legacy business.
Management also expects gross margin to improve as the company
completes the transition from legacy to new products. However, we
remain concerned with the cash burn and do not expect the company
to return to profitability before 2016. Anadigics continues to be
affected by the uncertain economic environment and there is no
respite from the weakening demand in the near term. We prefer to
remain on the sidelines and retain our Neutral recommendation.
Founded in 1984, Anadigics, Inc. is headquartered in Warren, New
Jersey. The company designs and manufactures semiconductor
solutions for the broadband wireless and wireline communications
markets. Its products include power amplifiers, tuner integrated
circuits, active splitters, line amplifiers, and other components.
These products are sold individually or packaged as integrated
radio frequency (RF) and front end modules. In the wireless market,
the company focuses on handsets and infrastructure equipment. In
the broadband market, the company focuses on cable set-top box and
other related equipment.
The company offers third generation products that use the
wideband code-division multiple access (W-CDMA) and enhanced data
rates for global system for mobile communication evolution (EDGE)
standards, as well as combinations of W-CDMA and EDGE platforms
(WEDGE) third generation (3G) products that use the high speed
packet access (HSPA) and Evolution Data Optimized (EVDO) standards
fourth generation (4G) products for worldwide interoperability for
microwave access (WiMAX) wireless fidelity (WiFi) products cable
television (CATV) cable modem and set-top box products CATV
infrastructure products and Fiber-To-The-Premises products.
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