Anadigics' third quarter 2014 adjusted loss with employee stock
option adjustments came in at $0.08 per share, which was narrower
than the Zacks Consensus Estimate of a loss of $0.09. 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 appears to be 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.
Effective second-quarter 2014, Anadigics will report its
operating results in two categories: Infrastructure and Mobile. For
the infrastructure market, the company manufactures RF and optical
products for cable television, cellular wireless small cell, WiFi
and machine-to-machine (M2M). The Mobile segment comprises of WiFi
and Cellular products that primarily address the smartphone,
handset and tablet markets
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