Quarterly Net Sales of $20.9 Million; a
Sequential Increase of 10.6%
Quarterly GAAP EPS ($0.06); Non-GAAP EPS
($0.05)
Full Year Net Sales $86.3 Million
Full Year GAAP EPS ($0.45); Non-GAAP EPS
($0.32)
ANADIGICS, Inc. (Nasdaq:ANAD) (the "Company"), a world leader in
radio frequency solutions reported fourth quarter 2014 net sales of
$20.9 million, a sequential increase of 10.6%. Revenue for the full
year 2014 was $86.3 million.
GAAP net loss for the fourth quarter of 2014 was $5.4 million,
or ($0.06) per diluted share, a sequential improvement of 18.5%.
GAAP net loss for the full year 2014 was $38.9 million, or ($0.45)
per share. Non-GAAP net loss for the fourth quarter of 2014 was
$4.7 million, or ($0.05) per share, representing a sequential
improvement of 17.4%. Non-GAAP net loss for the year was $27.8
million or ($0.32) per diluted share.
As of December 31, 2014, cash and cash equivalents totaled $18.4
million, or net cash of $14.4 million, after excluding $4.0 million
drawn under the Company's credit facility.
"We have made remarkable progress since we announced our
strategic restructuring late last June, and in virtually all
aspects, outperformed our stated objectives in the second half of
2014," said Ron Michels, chairman & CEO. "Infrastructure is
taking the leadership position in the Company with strength across
all of our key target markets, and we believe the Company is well
positioned for success."
"The benefits of our new business model are evident in our
improving metrics, including cash efficiency and expanding gross
margin," said Terry Gallagher, executive vice president and CFO.
"Our expense base, particularly R&D investments, is very well
aligned with our growth plan."
ANADIGICS' financial outlook for Q1:
- Revenue growth in Infrastructure is expected to offset
some of the normal seasonal decrease in mobile revenue, which
should result in a less-than-typical sequential decline in total
revenue of only 10 to 13%
- Non-GAAP gross margin is expected to improve sequentially by
approximately 400 basis points
- Operating expenses are expected to be approximately flat,
sequentially
The statements regarding the Company's anticipated future
performance are forward-looking in nature and actual results may
differ materially. Please see the safe harbor statement at the end
of this press release for additional information.
This press release includes financial measures that are not in
accordance with GAAP, consisting of non-GAAP net income and loss
per share. Management uses these measures to evaluate the Company's
operating and financial performance in light of business
objectives, for planning purposes, when publicly providing our
business outlook and to facilitate period-to-period comparisons.
ANADIGICS believes that these measures are useful to investors
because they enhance investors' ability to review the Company's
business from the same perspective as the Company's management and
facilitate comparisons of this period's results with prior periods.
These non-GAAP measures exclude amounts related to stock-based
compensation, marketable securities' adjustments, certain
non-recurring charges to cost of goods and restructuring charges.
Non-GAAP measures are used by some investors when assessing the
ongoing operating and financial performance of our Company. These
financial measures are not in accordance with GAAP and may differ
from non-GAAP methods of accounting and reporting used by other
companies. Management acknowledges that stock-based compensation is
a recurring cost and is an important part of our employee's
compensation and impacts their performance. However, the expense is
non-cash in nature and there are various valuation methodologies
and assumptions used in determining stock-based compensation that
may be unrelated to operations, such as volatility and current
interest rates. The presentation of the additional information
should not be considered a substitute for net income or loss or
income or loss per share prepared in accordance with GAAP.
Limitations of non-GAAP financial measures. The primary material
limitations associated with the use of non-GAAP measures as
compared to the most directly comparable GAAP financial measures
are (i) they may not be comparable to similarly titled measures
used by other companies in ANADIGICS industry, and (ii) they
exclude financial information that some may consider important in
evaluating our performance. We compensate for these limitations by
providing reconciliations of reported net income or loss and income
or loss per share to non-GAAP net income or net loss and non-GAAP
income or loss per share, respectively, within this press
release.
Conference Call
ANADIGICS' senior management will conduct a conference call
today at 5:00 PM Eastern Time. A live audio Webcast will be
available at www.anadigics.com/investors. To
listen to the conference via telephone, please call 866-459-1514,
conference ID 80993222. A recording of the call will be available
approximately two hours after the end of the call on the ANADIGICS
Web site at www.anadigics.com/investors or by
dialing 855-859-2056 conference ID 80993222 (available until
February 24, 2015).
Recent Highlights
February 10 - ANADIGICS' Board of Directors Elects Richard B.
Kelson as a Member
February 9 - ANADIGICS to Maintain its Listing on the NASDAQ
Global Select Market
January 14 - ANADIGICS to Update Fourth Quarter 2014 Guidance
and Present at the 17th Annual Needham Growth Conference
December 18 - ANADIGICS Expands WiFi Infrastructure Product
Line
November 24 - Huawei Ascend Mate 7 Powered by ANADIGICS WiFi
Solution
November 5 - ANADIGICS Expands Infrastructure Product Line with
New Family of Voltage-Controlled Oscillators
About ANADIGICS, Inc.
ANADIGICS, Inc. (Nasdaq:ANAD) (the "Company") designs and
manufactures innovative radio frequency (RF) solutions for the
growing CATV infrastructure, small-cell, WiFi, and cellular
markets. Headquartered in Warren, NJ, ANADIGICS offers RF products
with exceptional reliability, performance and integration to
deliver a unique competitive advantage to OEMs and ODMs for
infrastructure and mobile applications. The Company's award-winning
solutions include line amplifiers, upstream amplifiers, power
amplifiers, front-end ICs, front-end modules and other RF
components. For more information, visit
www.anadigics.com
Safe Harbor Statement
Except for historical information contained herein, this press
release contains projections and other forward-looking statements
(as that term is defined in the Securities Exchange Act of 1934, as
amended). These projections and forward-looking statements reflect
the Company's current views with respect to future events and
financial performance and can generally be identified as such
because the context of the statement will include words such as
"believe", "anticipate", "expect", or words of similar import.
Similarly, statements that describe our future plans, objectives,
estimates or goals are forward-looking statements. No assurances
can be given, however, that these events will occur or that these
projections will be achieved and actual results and developments
could differ materially from those projected as a result of certain
factors. You are cautioned that any such forward-looking statements
are not guarantees of future performance and involve risk and
uncertainties, as well as assumptions that if they materialize or
prove incorrect, could cause results to differ materially from
those expressed or implied by such forward-looking statements.
Further, all statements, other than statements of historical fact,
are statements that could be deemed forward-looking statements. We
assume no obligation and do not intend to update these
forward-looking statements, except as may be required by law.
Important factors that could cause actual results and developments
to be materially different from those expressed or implied by such
projections and forward-looking statements include those factors
detailed from time to time in our reports filed with the Securities
and Exchange Commission, including the Company's Annual Report on
Form 10-K for the year ended December 31, 2013, and those discussed
elsewhere herein.
ANADIGICS,
INC. |
Consolidated Statements
of Operations |
(Amounts in thousands,
except per share amounts) |
|
|
Three months
ended |
Twelve months
ended |
|
December 31,
2014 |
December 31,
2013 |
December 31,
2014 |
December 31,
2013 |
|
Unaudited |
Unaudited |
Unaudited |
Audited |
|
|
|
|
|
Net sales |
$20,879 |
$36,286 |
$86,282 |
$134,242 |
Cost of sales |
17,139 |
31,640 |
76,793 |
125,922 |
Gross profit |
3,740 |
4,646 |
9,489 |
8,320 |
Research and development
expenses |
5,270 |
9,321 |
26,708 |
38,585 |
Selling and administrative
expenses |
3,640 |
5,574 |
17,094 |
23,813 |
Restructuring charges |
133 |
-- |
6,098 |
1,915 |
Operating loss |
(5,303) |
(10,249) |
(40,411) |
(55,993) |
Interest income |
-- |
33 |
7 |
237 |
Interest expense |
(134) |
(31) |
(303) |
(82) |
Other income, net |
-- |
290 |
1,817 |
1,859 |
Net loss |
($5,437) |
($9,957) |
($38,890) |
($53,979) |
|
|
|
|
|
Net loss per share: |
|
|
|
|
Basic and diluted |
($0.06) |
($0.12) |
($0.45) |
($0.67) |
|
|
|
|
|
Basic and dilutive shares outstanding |
86,591 |
84,039 |
85,810 |
80,991 |
|
|
|
|
|
Unaudited Reconciliation of GAAP to
Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
GAAP net loss |
($5,437) |
($9,957) |
($38,890) |
($53,979) |
Stock compensation expense (excluding
Restructuring charges) |
|
|
|
|
Cost of sales |
156 |
127 |
861 |
1,041 |
Research and development |
294 |
465 |
1,744 |
2,118 |
Selling and administrative |
151 |
636 |
2,067 |
3,428 |
Cost of sales charge (1) |
-- |
665 |
2,080 |
2,589 |
Marketable securities redemptions and
accretion (2) |
-- |
(303) |
(1,728) |
(1,777) |
Restructuring charges (3) |
133 |
-- |
6,098 |
1,915 |
Non-GAAP net loss |
($4,703) |
($8,367) |
($27,768) |
($44,665) |
|
|
|
|
|
Non-GAAP loss per share (*): |
|
|
|
|
Basic and diluted |
($0.05) |
($0.10) |
($0.32) |
($0.55) |
|
|
|
|
|
Supplemental Information |
|
|
|
|
Infrastructure |
$9,737 |
$11,256 |
$39,161 |
$36,199 |
Mobile |
11,142 |
25,030 |
47,121 |
98,043 |
Net Sales |
$20,879 |
$36,286 |
$86,282 |
$134,242 |
|
|
|
|
|
Depreciation |
$2,496 |
$3,446 |
$11,317 |
$14,510 |
|
|
|
|
|
(*) Calculated using related GAAP shares
outstanding |
|
|
|
|
|
|
|
|
|
(1) Cost of sales charge for the
twelve months ended December 31, 2014 includes $2,080 inventory
write-down. |
Cost of sales charge for the
three months ended December 31, 2013 includes $665 for product
scrap from process standardization implementation. The twelve
months ended December 31, 2013 includes $756 for customer cost
reimbursement, $438 for costs from power interruptions, $730
charges for repair and product scrap from accelerated production
ramp, and $665 for product scrap from process standardization
implementation. |
(2) Marketable securities
adjustments include realized gains upon redemptions and interest
accretion. |
(3) Restructuring for the three
months ended December 31, 2014 includes $365 workforce reduction,
$479 fixed asset write-downs, and $711 realized gain on the sale of
certain surplus fixed assets. The twelve months ended December 31,
2014 includes $4,199 workforce reduction charges and $4,201 fixed
asset write-downs, partly offset by $2,302 from realized gains on
the sale of certain surplus fixed assets identified following the
strategic restructuring in the second quarter of 2014. The
twelve months ended December 31, 2013 included $1,915 workforce
reduction charge recorded in the first quarter of 2013. |
|
|
|
|
|
ANADIGICS,
INC. |
Condensed Consolidated
Balance Sheets |
(Amounts in
thousands) |
|
|
|
|
December 31,
2014 |
December 31,
2013(*) |
Assets |
Unaudited |
|
|
|
|
Current assets: |
|
|
Cash and cash equivalents |
$18,430 |
$20,947 |
Marketable securities |
-- |
3,447 |
Accounts receivable |
5,335 |
15,156 |
Inventory |
13,844 |
21,114 |
Prepaid expenses and other current
assets |
2,721 |
3,628 |
Assets held for sale |
335 |
-- |
Total current assets |
40,665 |
64,292 |
Plant and equipment, net |
17,171 |
33,176 |
Other assets |
180 |
213 |
|
$58,016 |
$97,681 |
|
|
|
Liabilities and stockholders'
equity |
|
|
|
|
|
Current liabilities: |
|
|
Accounts payable |
$5,913 |
$13,043 |
Accrued liabilities |
3,419 |
4,380 |
Accrued restructuring costs |
904 |
245 |
Bank borrowings |
4,000 |
-- |
Total current liabilities |
14,236 |
17,668 |
|
|
|
Other long-term liabilities |
1,122 |
1,604 |
|
|
|
Stockholders' equity |
42,658 |
78,409 |
|
$58,016 |
$97,681 |
|
|
|
(*) The condensed balance sheet
at December 31, 2013 has been derived from the audited financial
statements at such date but does not include all the information
and footnotes required by U.S. generally accepted accounting
principles for complete financial statements. |
CONTACT: Investor Relations
Terry Gallagher
Executive Vice President and CFO
ANADIGICS, Inc.
141 Mt. Bethel Road
Warren, NJ 07059
Tel: +1 908 668-5000
E-mail: tgallagher@anadigics.com
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