) reported a loss of $15.8 million in the first quarter of 2012 or
23 cents per diluted share compared to 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 generated revenues of $28.4 million in the first
quarter of 2012, down 22% sequentially and down 35% year over
Wireless segment contributed 75% to the total revenue in the
first quarter and Broadband contributed the remaining 25%.
As expected by ANADIGICS, wireless revenues came in at $21.0
million in the first quarter, down 29.8% sequentially due to
seasonality and the tailing off a business with one of its prime
customers - RIMM. In addition, other customers are also reducing
Broadband segment generated revenues of $7.4 million in the
fourth quarter, up 12.1% sequentially and up 12.0% year over year.
The growth was primarily due attributable to the loosening of
fourth quarter supply constraints caused by the flooding in
The company had four customers who generated more than 10% of
total revenue - Samsung, ZTE, and Hauwei.
Gross margin plummeted to 6.7% from 16.5% in the previous
quarter due to lower revenues leading to lesser absorption of fixed
manufacturing costs. Capacity utilization was 45% during the
Research and Development spending was up sequentially 12% to $10
million, as the company continued to introduce new product
offerings, such as MMPA and PADs, as well as advanced-generation
dual- and single-band discretes. Selling and administrative
expenses were largely flat on a sequential basis.
The company ANADIGICS ended the quarter with cash and
equivalents of $24.8 million, down from $32.7 million at the end of
The company is taking steps to reduce its expenses by $8 million
on an annualized basis. The majority of the savings are being
implemented in areas where operating efficiency can be improved
while maintaining strong R&D investments in support of growth
beginning in the late second half 2012 and into 2013.
Going forward, ANADIGICS expects a sequential decline in
revenues primarily due to a final step down in sales to one of the
former customer. ANADIGICS continues to face challenges in an
uncertain economic environment and there is no respite from
weakening demand in the near-term.
Hence, we continue to maintain a Neutral recommendation on
ANADIGICS. Our recommendation is supported by Zacks #3 Rank, which
translates into a short-term rating of Hold.
ANADIGICS CORP (ANAD): Free Stock Analysis
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