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Technology Stocks : Anadigics(ANAD) - Is anyone following this Company? -- Ignore unavailable to you. Want to Upgrade?

To: Rodolfo Salazar who wrote (317)	1/31/1998 3:22:00 AM
From: SemiBull	Read Replies (1) \| Respond to of 1079

Salazar, It is my understanding that SiGe is much further along than many think. Having said that it is still a 2000-2001 technology. And even then GaAs still provides certain advantages over SiGe - though cost is a definite disadvantage which will need to come down for it to survive long term. BTW, IMHO VTSS will take a hit shortly. Just one man's spin....SemiBull

To: Rodolfo Salazar who wrote (317)	1/31/1998 8:42:00 AM
From: Larry Garrison	Read Replies (2) \| Respond to of 1079

Solid, huh? Here's a cut-and-paste excerpt from the Sep'97 quarter 10Q: >>Liquidity and Capital Resources As of September 28, 1997, the Company had $25.5 million in cash and cash equivalents and $27.8 million in marketable securities. Approximately $18.3 million of the marketable securities have been designated for the purchase of capital equipment and to make leasehold improvements. No amounts were drawn on the Company's credit facilities during the nine month period ended September 28, 1997. Net cash provided by financing activities was $57.5 million during the nine month period ended September 28, 1997. On February 26, 1997, the Company received $55.4 million in net proceeds from a public offering of 1,875,000 shares of common stock. Net cash used in investing activities was $60.5 million during the nine month period ended September 28, 1997. Purchases of equipment and leasehold improvements totaled $41.7 million (primarily for the new four-inch wafer fabrication facility) and net purchases of marketable securities amounted to $18.8 million during the nine month period ended September 28, 1997. Net cash provided by operations was $5.4 million during the nine month period ended September 28, 1997, compared to $8.0 million provided by operations during the nine month period ended September 29, 1996. The reduction in cash provided by operations during the nine month period ended September 28, 1997 of $2.6 million, compared to the same period of 1996, was primarily due to increases in accounts receivable and inventory. The Company expects to spend approximately $36 million on equipment and furniture and approximately $10 million on leasehold improvements during the twelve month period ending September 27, 1998. At September 28, 1997 the Company had committed to purchase approximately $16 million of equipment and furniture, and leasehold improvements, including approximately $7 million for the Company's new four-inch wafer fab. The Company believes that its sources of capital, including internally generated funds and existing bank credit facilities, will be adequate to satisfy anticipated capital needs for the next twelve months. Nevertheless, the Company may elect to finance its future capital requirements through additional equity or debt financing.<< It looks like a lot of the money raised in the secondary is already spent, with some invested. Net cash used exceeded net cash provided by financing activities. It looks like a good chunk of change is already committed for FY '98 equipment/furniture buys. You have got to wonder how much all this equipment and "furniture" is going to be worth in 2-3 years in these high-tech businesses where technologies change so fast. It appears that net cash provided from operations only accounted for about 10% of the cash they needed to expand. It appears they already had accounts receiveable and inventory increases starting back last quarter. One might want to wonder what the unidentified $18 million of "marketable securities" were (hopefully NOT their own stock!!). Let's keep in mind that all this stuff is 3 months old now, but its food for thought; we should look at these items in the latest 10Q/10K when its released. Maybe the "street" already has, and the company's announcement of expected lower orders/revenues obviously didn't bode well. One man's opinion only. I've been burned before, and these financial situations are ALWAYS very similar!!