) reported a loss of $17.0 million or 24 cents per diluted share
in the third quarter of 2012 compared to a loss of $20.9 million
or 30 cents per diluted share in the second quarter of 2012 and a
loss of $10.0 million or 15 cents per diluted share in the
Excluding one-time items, loss came in at 23 cents per diluted
share, narrower than the Zacks Consensus Estimate of a loss of 27
cents per share.
ANADIGICS generated revenues of $28.6 million in the third
quarter of 2012, down 23.1% year over year but up 14.1%
sequentially as revenues from the new products ramp up offset
declines in legacy products.
ANADIGICS reported Wireless revenues of $21.1 million in the
third quarter, up 17.2% sequentially; driven by greater 3G
content per device at top customers arising from increased
Dual-band shipments along with growth at ProEficient and MMPA
Infrastructure (formerly Broadband) segment generated revenues
of $7.5 million in the reported quarter, up 5.6% on a sequential
basis, driven by CATV infrastructure. In this segment, $3.8
million of revenues came from CATV infrastructure; $1.1 million
came from CATV subscriber. WiMAX generated revenues of $1 million
and WiFi about $1.3 million.
The company had three customers who generated more than 10% of
the total revenue namely, Samsung, ZTE, and Hauwei. Other
customers in the quarter include
) along with two distributors - Richardson and World Peace
ANADIGICS reported a gross profit of negative $0.2 million in
the quarter, compared to negative $2.5 million in the previous
quarter, due to incremental contribution from the revenue
increase and improved absorption of manufacturing costs.
ANADIGICS continues to incur additional costs as the company
introduces and deploys new technologies, processes and
Research and development expenses declined 3% sequentially.
Selling and administrative expenses decreased 8% sequentially to
$5 million as the company continues to undertake cost
ANADIGICS ended the quarter with cash and equivalents of $10.3
million, down from $17.1 million at the end of the previous
During the quarter, ANADIGICS incurred $0.25 million in
capital expenditures while capacity utilization was 45% during
the quarter, versus 40% in the previous quarter.
Going forward, management did not provide any specific
guidance for the coming quarter. ANADIGICS expects sequential
growth in the coming quarter in its wireless segment as new
products offset the decline in legacy business.
Samsung had selected ANADIGICS solutions for its flagship
devices namely, Galaxy Note 2 and Galaxy S3.
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.
Management also expects gross margin to improve as revenues
recover and the company completes the transition from legacy to
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
ANADIGICS CORP (ANAD): Free Stock Analysis
CISCO SYSTEMS (CSCO): Free Stock Analysis
To read this article on Zacks.com click here.