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

To: Richard H. who wrote (335)	2/1/1998 12:55:00 PM
From: AARON DIDICH	Read Replies (1) \| Respond to of 1079

Richard: I listened to the playback yesterday at work and though it was not the best environment to catch details I came away thinking that this company has some problems to deal with and they would not reveal the names of the customers involved which is I guess good business practice on their part; it was the old look in the 10Q report when filed. Some points I walked away with: 1. they will be delaying the opening of the fab plant until '99 at the earliest 2. business plan is changing in light of the fact people are after low priced components so they will pursue high volume phone business and move away from the high end users 3. the 3 major business issues boiled down to [1] inventory;[2]end of product life cycles on products; [3]customers going to second vendors 4. when asked about specifics on inventory problem, had no concrete ideas 5. backend problems: process malfx seemed to involve one product to one vendor only and it was a product that has been produced without incident previously in volume. software problem will cause a 1 Q delay in delivery; and a contract delay going forward has caused the loss of potential business in the future because this customer has been forced to look for a 2nd vendor to produce a comparable product 6. cable TV products are looking good 7. when asked about how many customers are experiencing problems the reply was "all of them, but for different reasons" 8. DBS business is down significantly over the past year(?50%) and the reason was Europe was their primary market originally and now that the market is open to competition the Asian contingent is taking share away 9. still feels Si can't offer long battery life for cell PA's 10. end of life cycles keep coming, felt GSM's were passe though he did not think the vendors were losing market share 11. gigabit datacom market will be actively pursued 12. Qualcomm was really the only client mentioned by name and that was because the analyst specifically asked about their Q-series; basically felt Qualcomm is not having a problem though one of their phones has always had a back-up vendor and this alternate source is taking market share 13. 3V market will be crucial arena 14. have to agree that SEA problem was not alluded to much if at all other than a round-about away(competition stealing work, not cancelling orders) Hope this helps and please correct any misunderstandings from what you heard. PS: I do recall them mentioning several times that these issues seemed to evolve slowly this past month and they honestly could not gauge the gravity of each isolated event until it became obvious that there were just too many little things. If you can judge by voice and the way it came out I have to say I almost felt sorry for them. Maybe this is true considering they did meet estimates for this quarter and hence the dire future statement on future revenue. This is all just my opinion and interpretation of what was aired.