) reported a loss of $20.9 million or 30 cents per diluted share in
the second quarter of 2012 compared with a net loss of $15.8
million or 23 cents per diluted share in the previous quarter and a
net loss of $13.0 million or 19 cents per diluted share in the
Excluding one-time items, loss came in at 28 cents per diluted
share, wider than the Zacks Consensus Estimate of 23 cents per
ANADIGICS generated revenues of $25.1 million in the second
quarter of 2012, down 11.7% sequentially and 29.5% year over
Wireless segment contributed 72% to the total revenue in the
second quarter while Broadband contributed the remaining 28%.
ANADIGICS reported Wireless revenues of $18 million in the
second quarter, down 14.3% sequentially. This was primarily due to
an anticipated reduction of $2 million in revenues from
Research in Motion Limited
) and smaller declines in China OEMS, which witnessed a drop in
their own market share as Apple and Samsung enhanced their presence
in the smartphone market.
Infrastructure (formerly Broadband) segment generated revenues
of $7.1 million in the reported quarter, roughly flat on a
The company had three customers who generated more than 10% of
the total revenue - Samsung, ZTE, and Hauwei. Other customers in
the quarter include Cisco (CSCO), LG; two distributors - Richardson
and World Peace Group; and also Sierra Wireless (SWIR), which
replaced RIMM in the quarter.
ANADIGICS reported a gross profit of ($2.1) million in the
quarter, down from $6.5 million in the first quarter of 2012. This
was mainly due to a decline in revenue and higher costs. ANADIGICS
incurred additional costs as the company introduced and deployed
new technologies, processes and products.
Research and development expenses declined 4% sequentially.
Selling and administrative expenses decreased 6% sequentially to
$5.4 million as the company continues to undertake measures to
streamline the cost structure. Management implemented new
strategies to further reduce its expenses by over $1 million.
ANADIGICS ended the quarter with cash and equivalents of $17.1
million, down from $24.1 million at the end of the previous
During the quarter, ANADIGICS incurred $0.7 million in capital
expenditures while capacity utilization was 40% during the
Going forward, management did not provide any specific guidance
for the coming quarter. ANADIGICS believes that revenues have
stabilized as new products and wireless ramp will offset the
decline in the legacy business. Management also expects gross
margin to improve as revenues recover and the company completes the
transition from legacy to new products.
Hence, we continue to maintain our long-term Neutral
recommendation on ANADIGICS. Our recommendation is supported by a
Zacks #3 Rank, which translates into a short-term Hold rating.
ANADIGICS CORP (ANAD): Free Stock Analysis
RESEARCH IN MOT (RIMM): Free Stock Analysis
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