ANADIGICS Announces Fourth Quarter and Year End Results

ANADIGICS Announces Fourth Quarter and Year End Results

    Full Year Net Sales $134.2 Million; a Year-Over-Year increase of 19.2%

               Full Year GAAP EPS ($0.67); Non-GAAP EPS ($0.55)

      Quarterly Net Sales of $36.3 Million; a Sequential Decrease of 2%

               Quarterly GAAP EPS ($0.12); Non-GAAP EPS ($0.10)

WARREN, N.J., Feb. 20, 2014 (GLOBE NEWSWIRE) -- ANADIGICS, Inc. (Nasdaq:ANAD),
a leading provider of semiconductor solutions in the broadband wireless and
wireline communications markets, reported fourth quarter 2013 net sales of
$36.3 million, a sequential decrease of 2% and an increase of 19.1% from the
fourth quarter of 2012. Revenue for the full year 2013 of $134.2 million
increased 19.2% on an annual basis.

As of December 31, 2013, cash, cash equivalents and short-term marketable
securities totaled $24.4 million.

GAAP net loss for the fourth quarter of 2013 was $10.0 million, or ($0.12) per
diluted share, a sequential improvement of 11.1%. GAAP net loss for the full
year 2013 was $54.0 million, or ($0.67) per share. Non-GAAP net loss for the
fourth quarter of 2013 was $8.4 million, or ($0.10) per share, representing a
sequential improvement of 11.9%. Non-GAAP net loss for the year was $44.7
million or ($0.55) per diluted share.

"ANADIGICS' non-GAAP gross margin increased by 1,250 basis points year over
year in the fourth quarter of 2013 and 820 basis points for the full year 2013
as compared to 2012," said Terry Gallagher, vice president and CFO. "To
sustain this forward momentum towards our EBITDA objectives, we have
implemented efficiency and expense reduction initiatives that should provide
an annual savings of over $10 million."

"I am very pleased by our fourth quarter results, which completes a year of
consistent gross margin improvement," said Ron Michels, chairman & CEO. "While
we are experiencing both seasonal and inventory-related softness in the first
quarter, our WiFi, Cellular and Infrastructure solutions have strong design
win traction. With a sharp focus on new product introduction, product mix
improvements and prudent expense management, we believe ANADIGICS is well
positioned on our path to profitability."

The Company expects that first quarter 2014 revenue will decrease by 34 - 37%
sequentially. However, through greater efficiency and expense reductions, we
anticipate a double digit gross margin in spite of the revenue decrease.
Furthermore, we expect a 10% sequential reduction in operating expenses
(research and development and selling and administrative expenses), which
establishes a lower expense baseline for 2014.

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

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 To listen to the conference via telephone, please
call 866-459-1514, conference ID 70745040. A recording of the call will be
available approximately two hours after the end of the call on the ANADIGICS
Web site at or by dialing 855-859-2056 conference
ID 70745040 (available until February 27, 2014).

Recent Highlights

January 29 - ANADIGICS Introduces New Small-Cell Power Amplifier

January 14 - Samsung Selects ANADIGICS ProVantage Solutions for GALAXY Trend 3

December 19 - ANADIGICS Appoints Alltek as a Distributor for Asia Pacific


ANADIGICS, Inc. (ANAD) designs and manufactures innovative radio frequency
solutions for the growing cellular, WiFi, and infrastructure markets.
Headquartered in Warren, NJ, ANADIGICS offers RF products with exceptional
performance and integration to deliver a unique competitive advantage to OEMs
and ODMs for mobile device, base station, CATV infrastructure, CATV
subscriber, and industrial applications. The Company's award-winning solutions
include power amplifiers, front-end ICs, front-end modules, line amplifiers,
active splitters, tuners, and other RF components. For more information, visit

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, 2012, and those discussed elsewhere herein.

Consolidated Statements of Operations
(Amounts in thousands, except per share amounts)

                          Three months ended        Twelve months ended
                          December 31, December 31, December 31, December 31,
                           2013         2012         2013         2012
                          Unaudited    Unaudited    Unaudited    Audited
Net sales                 $36,286      $30,476      $134,242     $112,643
Cost of sales             31,640       31,017       125,922      113,869
Gross profit (loss)       4,646        (541)        8,320        (1,226)
Research and development   9,321        10,145       38,585       43,892
Selling and administrative 5,574        5,516        23,813       24,289
Restructuring charges     --         --         1,915       2,338
Operating loss            (10,249)     (16,202)     (55,993)     (71,745)
Interest income           33           117          237          528
Interest expense          (31)        --         (82)         --
Other income, net         290          24           1,859        1,364
Net loss                  ($9,957)     ($16,061)    ($53,979)    ($69,853)
Net loss per share                                             
Basic and diluted         ($0.12)      ($0.23)      ($0.67)      ($0.99)
Basic and dilutive shares  84,039       71,324       80,991       70,721
Unaudited Reconciliation
of GAAP to Non-GAAP                                            
Financial Measures
GAAP net loss             ($9,957)     ($16,061)    ($53,979)    ($69,853)
Stock compensation expense
(excluding Restructuring                                       
Cost of sales             127          151          1,041        888
Research and development  465          253          2,118        1,626
Selling and                636          613          3,428        3,218
Cost of sales charge (1)   665         1,145       2,589       1,145
Marketable securities
redemptions and accretion  (303)       (28)        (1,777)     (1,393)
Restructuring charges (3) --         --         1,915        2,338
Non-GAAP net loss         ($8,367)     ($13,927)    ($44,665)    ($62,031)
Non-GAAP loss per share                                        
Basic and diluted         ($0.10)      ($0.20)      ($0.55)      ($0.88)

(*) Calculated using related GAAP shares outstanding

(1) 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. Cost of sales for the three and
twelve months ended December 31, 2012 included $1,145 charge resulting from
product scrap and replacement costs following an equipment change.

(2) Marketable securities adjustments include realized gains upon redemptions
and interest accretion.

(3) Restructuring charges for the twelve months ended December 31, 2013 and
2012 included non-cash stock compensation of ($71) and $65, respectively.

Condensed Consolidated Balance Sheets
(Amounts in thousands)
                                      December 31, 2013 December 31, 2012 (*)
Assets                                 Unaudited         
Current assets:                                         
Cash and cash equivalents              $20,947           $24,949
Marketable securities                  3,447            17,750
Accounts receivable                    15,156            12,233
Inventory                              21,114            18,840
Prepaid expenses and other current     3,628             3,031
Total current assets                   64,292            76,803
Marketable securities                 --              8,811
Plant and equipment, net               33,176            41,048
Other assets                           213               219
                                      $97,681           $126,881
Liabilities and stockholders' equity                    
Current liabilities:                                    
Accounts payable                       $13,043           $14,099
Accrued liabilities                    4,380             4,345
Accrued restructuring costs            245              395
Total current liabilities              17,668            18,839
Other long-term liabilities            1,604             2,017
Stockholders' equity                   78,409            106,025
                                      $97,681           $126,881

(*) The condensed balance sheet at December 31, 2012 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
         Vice President and CFO
         ANADIGICS, Inc.
         141 Mt. Bethel Road
         Warren, NJ  07059
         Tel: +1 908 668-5000

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