ANADIGICS, INC. Reports First Quarter 1998 Results
WARREN, N. J.--(BUSINESS WIRE)--April 17, 1998--ANADIGICS, INC. (Nasdaq: ANAD - news) today reported financial results for the first quarter ended March 29, 1998.
For the first quarter, the Company reported net sales of $18.8 million and a net loss of $1.1 million, or $0.07 per diluted share. Included in the recent quarter results is a non- recurring charge of $1.1 million (pre-tax) or $0.05 per share on an after-tax basis related to a workforce reduction. In the first quarter of 1997, net sales were $22.9 million and net profit was $3.2 million or $0.23 per diluted share.
Results for the 1998 quarter primarily reflect a significant decrease in sales of integrated circuits for cellular and personal communication services (''PCS'') wireless applications. Sales of integrated circuits for fiber optic communications increased 32% over the prior year quarter, while CATV integrated circuit sales were essentially unchanged from the first quarter of 1997.
The gross profit for the quarter was $6.7 million which included a $1 million charge for obsolete inventory related to end of life products. The first quarter 1997 gross profit was $10.5 million. Gross margin for the quarter was 35.8%, compared to 46.1% in the first quarter of 1997.
Ron Rosenzweig, President and Chief Executive Officer of ANADIGICS, INC. commented, ''During the first quarter of 1998, orders received were stronger than sales led by strong demand for cable television and fiber optic communication products. Demand for wireless products continued to be soft, as customer inventories are worked down and our new dual-band products are still in the early stages of the customer's production ramp.''
During the quarter, ANADIGICS unveiled its new family of 3 volt GaAs power amplifiers designed to enable cellular handset designers to develop smaller and lighter phones with low power consumption, while addressing all the major cellular standards, AMPS, DAMPS, GSM, CDMA. The Company also introduced two additional GaAs power amplifiers in its dual-band/dual-mode family, featuring a high level of integration by offering the functionality of two amplifiers packaged in one low cost surface mount package, again addressing the demand for smaller and more cost-effective telephones.
Research and development expenses in the first quarter of 1998 totaled $4.6 million compared to $4.8 million in the fourth quarter of 1997 and $3.4 million in the first quarter of 1997. Selling and administrative expenses in the first quarter of 1998 totaled $3.3 million, compared to $3.1 million in the fourth quarter of 1997 and $2.7 million in the first quarter of 1997. |
