) reported relatively modest fourth quarter and full year 2013
results with a balanced sales mix, more efficient production and
stringent cost-cutting initiatives. The company incurred a loss
of $9.96 million or loss of 12 cents per share in the reported
quarter, narrower than a loss of $16.06 million or loss of 23
cents per share in the year-ago quarter.
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Excluding one-time items, adjusted net loss for the reported
quarter came in at 10 cents per share vis-à-vis a loss of 20
cents per share in the year-earlier quarter. The adjusted loss
per share for fourth quarter 2013 was narrower than the Zacks
Consensus Estimate of a loss of 12 cents.
For full year 2013, Anadigics recorded a loss of $53.98 million
or loss of 67 cents per share, compared with a loss of $69.85
million or loss of 99 cents per share in the previous year.
Adjusted net loss for full year 2013 was 55 cents per share
versus a loss of 88 cents in 2012. The adjusted loss per share
for full year 2013 was narrower than the Zacks Consensus Estimate
of a loss of 64 cents.
Total revenue for the reported quarter was $36.3 million, up
19.1% year over year and in line with the Zacks Consensus
Estimate. The Cellular wireless segment contributed $16.7 million
to total revenue, while legacy WiFi and Infrastructure accounted
for $14.4 million and $5.2 million, respectively.
For full year 2013, revenues improved 19.2% year over year to
$134.2 million primarily driven by a 700% increase in WiFi
revenues. Anadigics has won accolades for its 11n and 11ac design
wins in the mobile WiFi space and has ramped up production
anticipating wider industry acceptance. In the Cellular wireless
segment, the transition from 3G to 4G data services, especially
in China and emerging markets, has accelerated demand for the
company's products. The ProFicient and ProVantage solutions,
which help producers to reduce design complexity and cost while
extending battery life, have particularly stimulated revenue
During the reported quarter, Anadigics continued to improve its
cost structure through stringent cost-cutting initiatives, while
maintaining a sharp focus on new product developments. Gross
margin for the quarter increased 1,250 basis points on a
year-over-year basis to 12.8%. The margin improvement was
primarily driven by higher manufacturing throughput and other
operational efficiencies with an optimization of ILD
(inter-level-dielectric) technology, higher yields, larger
volumes of newer products and improvement on production costs.
Anadigics ended the year with cash and marketable securities of
$24.4 million. Inventories stood at $21.1 million or
approximately 68 days. During the quarter, Anadigics incurred
$1.3 million in capital expenditures while capacity utilization
Management did not provide any specific guidance for the ongoing
quarter. For the first quarter of 2014, Anadigics expect revenues
to be down 34% to 37% sequentially in the wake of seasonal and
inventory related softness in Cellular and WiFi. Despite the
lower revenues, considerable improvements in the cost structure,
overall product cost and sales mix are expected to reap
double-digit gross margins for the quarter.
Moving forward, Anadigics expects increasing mix of ILD and
continued product efficiencies to support growth in 2014 and
beyond. The company is working on driving R&D and SG&A
efficiencies further. Its year-to-date efforts are expected to
reap annualized savings of $5.5 million. At the same time,
Anadigics is continuing with its workforce reduction strategy to
cut annual payroll related expense by approximately $4.5 million.
Anadigics continues to focus on three market drivers that it
believes will expand its served available market. These drivers
include the rapid adoption of 3G and 4G data connectivity in
wireless mobile devices, expansion of wireless and CATV
infrastructure to support increase data use, and proliferation of
high performance WiFi connectivity in mobile devices. Together
with all these initiatives, the company expects to return to
profitability in 2014.
Anadigics presently has a Zacks Rank #3 (Hold). Better-ranked
players in the industry that are worth mentioning include
Himax Technologies, Inc.
), each carrying a Zacks Rank #2 (Buy).