ANADIGICS, Inc. (ANAD)
Q4 2009 Earnings Call Transcript
February 18, 2010 5:00 pm ET
Tom Shields – EVP and CFO
Mario Rivas – President and CEO
Neil Wagner – Stephens, Inc.
Anthony Stoss – Craig Hallum
Mike Alexander – Charter Equity
Richard Shannon – Northland Securities
Colin Detman – D.A. Davidson
Mike Bertham – FBM Securities
Previous Statements by ANAD
» ANADIGICS, Inc. Q3 2009 Earnings Call Transcript
» ANADIGICS Q2 2009 Earnings Transcript
» Anadigics, Inc. Q1 2009 Earnings Call Transcript
I would now like to turn the call over to Mr. Thomas Shields, CFO of ANADIGICS. Please go ahead, sir.
Thank you, operator. Good evening, everyone, and welcome to the ANADIGICS fourth quarter and year 2009 earnings conference call.
Before we get started, please remember any comments made in this call by management as part of prepared remarks or in response to your questions may contain forward-looking information. Such information is subject to risks and uncertainties as described in this evening's press release and in the company's various filings with the SEC.
I would like now to turn the call over to Mario for his opening remarks.
Thank you, Tom and good evening everyone from Barcelona at the Mobile World Congress. If you may recall, it was exactly at this time one year ago that I joined ANADIGICS as CEO and I outlined a number of key strategic initiatives for 2009. These initiatives centered specifically on rebuilding customer relationships, achieving operational excellence, and preserving cash. Our successful execution of the 2009 initiatives allowed us to regain market share, thanks to new design win opportunities, leveraging our InGap-Plus BiFET technology through new product developments for the growing 3G and 4G markets. And as you can tell from the consistent quarterly financial improvements that we made, I am quite pleased to report that 2009 was a favorable year for ANADIGICS.
First, our customer relationships have been quite strong at LG and RIM were the only 10% customers for the entire calendar year 2009. We successfully gained market share at Samsung, having achieved 10% customer status in both Q2 and Q3. Samsung rebounded very well and is showing even stronger signs of growth in the first quarter of 2010. In addition, VTE became a new customer of ANADIGICS in 2009 and remained quite steady each and every quarter.
Second, we introduced new leadership in our manufacturing operations, which resulted in best-in-class product cycle times and manufacturing yields. Cycle times averaged less than 30 days consistently, and yields have been in the mid-90% range. Further, we announced our hybrid manufacturing strategy with WIN Semiconductors to provide additional and flexible capacity beyond our main fab in Warren with no additional capital investment.
Third, for the fourth quarter of 2009, we successfully crossed over into the profitable EBITDA territory, generated positive cash flow and ended the year 2009 above $90 million in cash and marketable securities. We reported revenue of $41.8 million, which grew 14% sequentially and exceeded our revenue guidance range of 5% to 8% sequential growth. The stronger results were primarily due to better-than-expected growth in wireless LAN, WiMAX, cable, and in wideband CDMA.
Looking forward, we are very excited about our unprecedented pipeline of new products exiting 2009, as we look to continue to release to market our new families of power amplifiers for wideband CDMA, HSPA, EDGE, WiMAX and MPE. We have a significant number of new products in the pipeline across three product families, dual band PA, HELP3 plus coppers and our HELP4 technology. All three product families gratified our industry-leading technology with unparalleled linearity and efficiency.
Recently, we announced industry-leading power amplifier solutions for UMPS and CDMA handsets, smartphones, modems, and modules with the lowest current consumption and longest talk times, which are enabled by (inaudible), driving average current drain as low as 21.5 milli-amps in our HELP4 family. Our product families have the lowest footprint on the phone board, 3x3 mm for single band with integrated coppers, and 3x5 mm for dual band with integrated coppers. Furthermore, we pride ourselves in offering the customers the best application support in the industry. Demand for our new families of products is extremely high and will drive revenue growth in 2010.
In the WiMAX market, we recently previewed our new AWT6283R, which is the industry's first power amplifier to deliver high linear output power, exceptional efficiency, and consistent RF performance over the full 3.3-3.8 GHz frequency band.
Turning to WiFi, we are offering five new highly integrated high-performance front end modules and front end ISP products designed for the notebook and netbook PC and wireless smartphone market segments. Most notably, during the quarter, we secured a dual band WiFi smartphone reference we signed with one of the global semiconductor leaders in storage, communications, and consumer solutions. We are currently something in some WiFi smartphones and anticipate the production ramp to begin in the second half of 2010.
So now, let me talk about 2010 and discuss with you our three key initiatives for the coming year. First, leverage our operational excellence. Second, introduction of superior products to win business over our competitors, and capitalize on the growth in both the 3G and 4G spaces. And third, achieve profitability. We are focused and committed to our achieving non-GAAP EPS this year.