) recently announced that the company is shipping production
volumes of various versions of fourth generation power amplifiers
to ZTE for its smartphones. The smartphones include the V889D,
V788D, N788, N910, and PF200 smartphones.
ANADIGICS expects to be continually involved with ZTE as the
latter develops innovative smartphones for the global wireless
market. The customer ZTE comprised more than 10% of revenue in the
first quarter of 2012.
In the long term, ANADIGICS expects business to thrive based on
three key factors: continued and accelerated growth in the
established markets for 3G, 4G and CATV and Wireless infrastructure
products, increasing penetration of newer-generation wireless and
wireline broadband communications technology into developing
markets, such as China and India worldwide, and an increased demand
for solutions within the latest-generation products in these end
Meanwhile, earnings estimates have declined severely after the
company reported a wider loss in the first quarter of 2012.
ANADIGICS reported a loss of $15.8 million or 23 cents per
diluted share compared with a net loss of $10.7 million or 16 cents
per diluted share in the year-ago quarter. Excluding one-time
charges but including stock-based compensation expense, net loss
came in at 24 cents per share, wider than the Zacks Consensus
Estimate of a loss of 21 cents per share.
ANADIGICS continues to face challenges in an uncertain economic
environment and there is no respite from weakening demand in the
near term. The company expects a drop in revenue in the second
quarter due to a final step down in sales to one of its former
Research in Motion
We continue to maintain a Neutral recommendation on ANADIGICS in
the long run. However, the near-term weakness forces us to have a
Zacks #4 Rank, which translates into a short-term rating of
ANADIGICS CORP (ANAD): Free Stock Analysis
RESEARCH IN MOT (RIMM): Free Stock Analysis
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