ANAD earnings:
ANADIGICS Reports Record Third Quarter Results
Net Sales rose 44 Percent to $51.1M
$0.23 EPS More Than Double Last Year, Broadband Revenues Increase 38 Percent Sequentially
WARREN, N.J.--(BUSINESS WIRE)--Oct. 23, 2000--ANADIGICS, Inc. (Nasdaq:ANAD - news) today reported record net sales of $51.1 million for the third quarter ended September 30, 2000, a 44% increase over the $35.5 million reported in the third quarter of 1999. Net income for the third quarter was $7.1 million or $0.23 per diluted share, also a record for the company, compared with adjusted net income of $2.5 million or $0.10 per diluted share in the year-ago quarter.
Net sales were up 7.5% sequentially from the $47.5 million reported in the second quarter ended July 2, 2000. Net income and diluted earnings per share increased sequentially 7% and 10%, respectively, from the $6.6 million and $0.21 reported in the 2000 second quarter.
Net sales of $141.6 million for the first nine months of 2000 rose 56% from the $91.0 million reported in the comparable period of 1999. Excluding special items, net income of $19.4 million and diluted earnings per share of $0.61 increased 275% and 190%, respectively, from the $5.2 million and $0.21 reported in the 1999 period.
The record revenues in the third quarter were achieved through increased product demand in our broadband businesses -- cable and fiber optic communications IC products. Broadband revenues reached $30.4 million (cable -- $23.6 million and fiber -- $6.8 million), a 38% sequential increase from the second quarter. This increase was spurred by increased orders from existing customers, reflecting the rapid growth in the broadband markets, the success of our broadband product offerings, and the continued expansion of our customer base.
``Our broadband cable access and fiber optics businesses enjoyed a tremendous quarter,'' said Dr. Bami Bastani, ANADIGICS President and Chief Executive Officer. ``We have an ideally balanced Communication IC marketplace and product portfolio. Further, our newly introduced PicoTunerTM is an industry breakthrough, one that we anticipate will change the tuner landscape for the cable industry. In our estimation, the PicoTuner(TM) puts us one year ahead of our competitors.''
Broadband revenues for the first nine months of 2000 were $72 million ($55.9 million cable and $16.1 million fiber), up 36% from the comparable 1999 period. Cable revenues alone were up 68%, while fiber revenues were lower by 18%, reflecting the impact of the strategic repositioning of the fiber optics product line to serve higher data rate communication applications.
Wireless products revenues, principally power amplifier ICs for mobile phones, were $20.7 million in the quarter, an increase of 32% from the year-ago quarter, but a decline of 18% sequentially from the second quarter. As previously discussed in ANADIGICS' second quarter earnings release and consistent with the Company's September 15, 2000 comments on the outlook for the second half 2000 and calendar year 2001, inventory corrections and component shortage issues at our largest customer led to a shift in revenue mix to broadband products. Wireless revenues for the first nine months of 2000 were up 82% from the year-ago period.
``Our relationship with our largest customer is excellent and we're well positioned as a strategic supplier in 2001. At the same time, our new 3-Volt, InGaP HBT power amplifier products are on track to generate the needed diversification in the wireless customer base,'' Dr. Bastani continued. ``At the recent European Microwave Week exhibition in Paris, France, we introduced the industry's first InGaP HBT power amplifier featuring dual band (GSM/DCS) voice operation as well as GPRS data services capability in a single, highly integrated module solution.''
Gross margin in the third quarter of 51.4% increased slightly from 51.3% in the second quarter. For the same period last year, gross margin was 46.8%. The Company completed the migration to its state-of-the-art, six-inch GaAs RF wafer fabrication facility on September 21, 1999 and expects to complete the expansion of the facility by the end of this year. ANADIGICS is the leader in the industry with its 6-inch manufacturing capability.
The Company's balance sheet remains strong. Cash generated from operations in the quarter was $4.9 million. The Company's cash position, including marketable securities, was $168.7 million at quarter's end, which allows the Company financial flexibility to fund future growth. Days sales outstanding at September 30, 2000 was 56 days, an increase from 54 days from last quarter. Inventory levels of 62 days were up from 56 days last quarter.
Highlights of the Quarter
-- NEW PRODUCT - PicoTuner(TM) -- A fully integrated, dual
conversion RF data tuner. Delivers DOCSIS performance while
eliminating the need for up to 50 off-chip components required by
other IC-based tuner designs. A lower cost, yet higher
performance, industry revolution that also reduces customer time
to market by requiring less design and manufacturing time.
-- NEW PRODUCT - InGaP HBT Power Amplifier for GSM/DCS and GPRS
Data-Enabled Wireless Handsets -- Latest product in the family of
3-Volt, InGaP (Indium Gallium Phosphide), HBT (Heterojunction
Bipolar Transistor) power amplifiers designed for GSM, TDMA, CDMA
and 3G wireless handsets. This power amplifier delivers dual band
(GSM/DCS) voice operation as well as GPRS data services capability
in a single, highly integrated module solution.
-- NEW PRODUCT - IP Telephony Reverse Path Amplifier -- A new reverse
path amplifier targeted specifically for the residential gateway
and IP Telephony applications. This product compensates for noisy
reverse paths that can plague typical cable systems and allows
cable operators to remotely diagnose and isolate noise ingress
problems that have the potential to take down the cable system.
-- NEW PRODUCT AND DESIGN WIN - Rate-Agile Optical Receiver;
Selected by Stratos Lightwave For Use in Small form Factor
Transceivers -- The company simultaneously introduced a new
rate-agile optical receiver solution and announced that Stratos
Lightwave, Inc. had selected the product for use in its small form
factor transceivers for storage area networks (SANs). This
receiver offers the unique flexibility to operate at both 1X and
2X Fibre Channel data rates using one high performance solution,
enabling network designers to easily scale up capacity in SANs.
-- NEW PRODUCT - Small Form Factor Receiver for Datacom Fiber Optic
Systems -- A highly integrated fiber receiver specifically
designed for use in small form factor (SFF) modules for Gigabit
Ethernet and Fibre Channel fiber optic networks. This product
offers system designers a high performance solution for 850nm
systems in a small TO-56 package ideally suited for SFF modules,
enabling increased overall system board density in next-generation
datacom transceivers.
-- INDIVIDUAL INVESTOR Names ANADIGICS One of America's 100 Fastest
Growing Companies -- In its seventh ranking, Individual Investor
magazine announced that ANADIGICS is ranked number 40 among this
year's list of 100 fastest growing companies in the United States.
Individual Investor ranked this year's fastest growing companies
in the special September 2000 issue.
-- NEW PRODUCT - 24-Volt Surface Mount Linear Amplifier -- The
broadband product line was expanded with the introduction of a
high performance, low cost 24-volt cable distribution amplifier
that meets increased demands for advanced services and additional
bandwidth in cable distribution networks. This high performance
amplifier is designed for broadband cable distribution systems,
including head-ends, distribution networks, fiber nodes, line
extenders, and system amplifiers.
-- MILESTONE - Over 100 Million ICs Shipped To Date for Broadband
Network Applications -- The Company announced that it has to date
shipped over 100 million industry-leading broadband RFICs for
cable systems and fiber optic networks.
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