ANADIGICS Beats Estimates

ANADIGICS, Inc. (NASDAQ:ANAD) reported revenues of $41.8 million in the fourth quarter of 2009, down 7.6% from a year ago but up 13.9% sequentially and surpassed management’s revenue growth guidance of 5% – 8%.

The growth in revenues came from higher-than-expected shipments in each of the main product categories of wideband CDMA, wireless LAN, WiMAX, and cable products.

Wireless revenues came in at $24.9 million, down 5.7% sequentially. Broadband revenues came in at $16.9 million, up 64.4% sequentially and were better than management’s expectations. Within broadband, wireless LAN revenue was $5.7 million, up 90% sequentially. Cable Television (CATV) revenue was $9.9 million, an increase of 46% sequentially and WiMAX revenue came in at $1.3 million.

The top customers for the company included Research in Motion Limited (NASDAQ:RIMM), Intel Corporation (NASDAQ:INTC), LG, Richardson Electronics Ltd (NASDAQ:RELL), Motorola Inc. (NYSE:MOT), Cisco Systems Inc (NASDAQ:CSCO), and Samsung Electronics Co., Ltd.

LG and RIMM each generated more than 10% of total revenues in 2009. ANADIGICS was also able to win back lost market share at Samsung which it had lost in 2008. Samsung was a 10% customer in the second and third quarter of 2009 and continues to be strong in the first quarter of 2010 as well.

Gross margin came in at 29.1%, up 470 basis points sequentially. The increase in gross profit was driven by better-than-expected product yields, lower direct material costs, and better overall product margins from increased revenue. The increase was partially offset by the negative impact of a planned two-week fab shutdown at the end of the quarter.

Net loss came in at $3.2 million or 5 cents per share, much lower than the Zacks Consensus of 14 cents and management’s guidance of a loss of 8 to 10 cents. The lower loss was due to higher revenues and gross margin which positively impacted the bottom-line.

During the quarter, ANADIGICS generated $4.6 million of cash from operations and used $0.8 million in capital expenditures. As of December 31, 2009, cash and equivalents totaled $83.1 million.

Revenue for the year ended 2009 was $140.5 million, down 45.6% from 2008. Net loss per share came in at 54 cents.

Going forward, management stated that the company continues to see strong bookings in the quarter in the wireless product line. Hence, wireless revenue is expected to grow by approximately 20% sequentially. This growth is expected to offset a previously-expected decline in wireless LAN revenue.

Management expects net sales of $41.8 million in the first quarter of 2010. Gross margin is projected around 29% – 30%. Net loss per share is forecasted around 5 – 6 cents.

Headquartered in Warren, New Jersey, ANADIGICS designs and manufactures semiconductor solutions for the broadband wireless and wireline communications markets.