ANADIGICS Announces Fourth Quarter and Full Year 2008 Results

WARREN, NJ -- (MARKET WIRE) -- Feb 26, 2009 -- ANADIGICS, Inc. (NASDAQ: ANAD), a leading provider of semiconductor solutions in the broadband wireless and wireline communications markets, reported fourth quarter 2008 net sales of $45.2 million, a decrease of 22% sequentially and a decrease of 33% from the fourth quarter of 2007. Revenue for the year ended 2008 was $258.2 million, up 12% from 2007. As of December 31, 2008, cash, cash equivalents and short- and long-term marketable securities totaled $145.7 million.

Net loss for the fourth quarter of 2008 was $36.4 million, or ($0.60) per share. Net loss for the year ended 2008 was $41.9 million, or ($0.70) per share. Non-GAAP net loss for the fourth quarter of 2008 was $4.9 million, or ($0.08) per share. Non-GAAP financial measures exclude charges of $31.4 million or ($0.52) per share associated with stock-based compensation, asset impairments, including the termination of our China fab project, inventory, impairment of auction rate securities and a reduction in workforce. Non-GAAP net income for the year-ended 2008 was $15.8 million or $0.26 per share compared with $23.1 million or $0.39 per diluted share for the year ended 2007. The details of the Non-GAAP adjustments are disclosed in the accompanying financial schedules.

"2008 was a challenging year," said Gilles Delfassy, chairman of the board. "We had a very strong first half due to the success of our products. However, we weren't able to completely satisfy the high product demand at that time, which resulted in a loss of market share at certain customers in the second half. This has been compounded by the recent economic slowdown with customers delaying orders to reduce their exposure in this weak and continuingly uncertain economic environment. With these factors, we expect to see a decline of approximately 35% in our first quarter 2009 net sales as compared to net sales in the fourth quarter of 2008. And although we are aggressively managing expenses, the underutilization of our fab will continue to put pressure on gross margins until supply and demand are better aligned.

"At the same time however, we have many reasons to be encouraged about our future," continued Delfassy. "The plan we put in place to improve operational efficiencies and responsiveness to customers is producing results. We are achieving dramatic improvements in cycle times, yields and delivery of new product samples. More importantly, these improvements along with the technical advantages of our products have resulted in renewed traction with our customers as we are engaged in many of their new programs."

Mario Rivas, ANADIGICS' newly appointed president and chief executive officer, echoed Gilles' comments. "Customer wins that were announced in the fall of 2008 are now ramping in production, resulting in market share gains at those customers. With the new designs scheduled to ramp in the second half of 2009, we believe we are well positioned to resume growth during the next product cycle. I am encouraged that ANADIGICS can emerge out of this downturn a stronger company."

Outlook for the First Quarter 2009

Net sales for the first quarter 2009 are expected to decline approximately 35% from fourth quarter 2008. Net loss per share on a GAAP basis for the first quarter 2009 is expected to be approximately $0.33. Non-GAAP loss per share, excluding non-cash stock compensation expense, is expected to be approximately $0.28. The net loss and non-GAAP loss per share are based on an estimated diluted weighted average outstanding common share count of 62 million.

The statements regarding the Company's anticipated future performance are forward looking, and actual results may differ materially. Please see safe harbor statement at the end of this press release.

This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP net income or loss and non-GAAP income or loss per share. Management uses non-GAAP net income or loss and non-GAAP income or loss per share 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 charges related to stock-based compensation, restructuring and asset impairments, impairment of auction rate securities, discontinued operations and charges unique to the third and fourth quarters of 2008 resulting from management separations, equipment purchase cancellations and impairments on equipment held for sale and inventory reserves associated with reduced demand. 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 www.anadigics.com/investors. A recording of the call will be available approximately two hours after the end of the call on the ANADIGICS Web site or by dialing 866-459-1514 conference ID 82507901 (available until March 4, 2009).

Recent Highlights

February 18, 2009 -- ANADIGICS  announced its new AWE6157 quad-band linear
  EDGE power amplifier (PA) module for 3G wireless handsets and equipment.
February 17, 2009 -- ANADIGICS launched the AWM6424, a new worldwide WiMAX
  4G power amplifier (PA) that provides exceptional linearity and
  efficiency across the 2.3-2.7 GHz frequency range.
February 16, 2009 -- ANADIGICS Expands 4G Power Amplifier Portfolio with
  New Band 1 Femtocell Module
February 10, 2009 -- ANADIGICS Announces Availability of a NIM Reference
  Design for CATV Set-Top Boxes and other Home Gateway Subsystems
January 15, 2009  -- ANADIGICS appoints Mario Rivas as CEO:  Interim CEO
  Gilles Delfassy to stay on as Chairman of the Board
November 11, 2008 -- ANADIGICS Powers Sierra Wireless' COMPASS™ 885 USB
  Modem

About ANADIGICS, Inc.

ANADIGICS, Inc. (NASDAQ: ANAD) is a leading provider of semiconductor solutions in the growing broadband wireless and wireline communications markets. The Company's products include power amplifiers, tuner integrated circuits, active splitters, line amplifiers, and other components, which can be sold individually or packaged as integrated radio frequency and front end modules.

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. 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, 2007, and those discussed elsewhere herein.

ANADIGICS, INC.
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,
                            2008           2007                  2008                  2007
                                                -----------    -----------    -----------    -----------
                                                (Unaudited)    (Unaudited)    (Unaudited)

Net  sales                              $        45,243    $        67,569    $      258,170    $      230,556
Cost  of  sales                                36,456              44,131            179,583            151,768
                                                -----------    -----------    -----------    -----------
Gross  profit                                    8,787              23,438              78,587              78,788
Research  and
  development  expenses                12,393              13,230              54,452              46,539
Selling  and
  administrative
  expenses                                          8,201                8,109              41,098              30,171
Restructuring  and
  impairment  charges                    21,304                        -              21,304                        -
                                                -----------    -----------    -----------    -----------
Operating  (loss)  income          (33,111)              2,099            (38,267)              2,078
Interest  income                              1,057                2,259                5,254                8,035
Interest  expense                              (591)                (591)            (2,365)            (2,463)
Other  expense                                (3,736)                (907)            (6,494)                (734)
                                                -----------    -----------    -----------    -----------
(Loss)  income  from
  continuing  operations            (36,381)              2,860            (41,872)              6,916
Loss  from  discontinued
  operations                                              -                        -                        -                  (965)
                                                -----------    -----------    -----------    -----------
Net  (loss)  income              $      (36,381)  $          2,860    $      (41,872)  $          5,951
                                                ===========    ===========    ===========    ===========

Basic  (loss)  earnings
  per  share
(Loss)  income  from
  continuing  operations    $          (0.60)  $            0.05    $          (0.70)  $            0.13
Loss  from  discontinued
  operations                                              -                        -                        -    $          (0.02)
                                                -----------    -----------    -----------    -----------
Net  (loss)  income              $          (0.60)  $            0.05    $          (0.70)  $            0.11
                                                ===========    ===========    ===========    ===========

Diluted  (loss)  earnings
  per  share
(Loss)  income  from
  continuing  operations    $          (0.60)  $            0.05    $          (0.70)  $            0.12
Loss  from  discontinued
  operations                                              -                        -                        -    $          (0.02)
                                                -----------    -----------    -----------    -----------
Net  (loss)  income              $          (0.60)  $            0.05    $          (0.70)  $            0.10
                                                ===========    ===========    ===========    ===========

Basic  shares
  outstanding                                  60,884              58,414              60,183              55,189
                                                ===========    ===========    ===========    ===========
Basic  &  dilutive  shares
  outstanding                                  60,884              60,802              60,183              58,621
                                                ===========    ===========    ===========    ===========


Unaudited  Reconciliation  of  GAAP  to  Non-GAAP  Financial  Measures


GAAP  net  (loss)  income    $      (36,381)  $          2,860    $      (41,872)  $          5,951
Stock  compensation
  expense  in  continuing
  operations
      Cost  of  sales                                625                    922                3,199                3,409
      Research  and
        development                              1,394                1,517                6,665                5,855
      Selling  and
        administrative                        1,454                1,564                6,815                6,012
Other  non-GAAP
  adjustments
      Cost  of  sales  (1)                    2,919                        -                7,135                        -
      Selling  and
        administrative  (2)                        -                        -                5,729                        -
Auction  rate  securities
  impairment                                      3,746                    957                6,810                    957
Restructuring  and
  impairment  charges
      Reduction  in
        workforce                                  2,140                        -                2,140                        -
      Intangibles
        impairment
        charges                                      6,207                        -                6,207                        -
      China  fab
        impairment  charge                12,957                        -              12,957                        -
Loss  from  discontinued
  operations                                              -                        -                        -                    965
                                                -----------    -----------    -----------    -----------
Non-GAAP  net  (loss)
  income                                  $        (4,939)  $          7,820    $        15,785    $        23,149
                                                ===========    ===========    ===========    ===========

Non-GAAP  (loss)
  earnings  per  share  *
Basic                                      $          (0.08)  $            0.13    $            0.26    $            0.42
                                                ===========    ===========    ===========    ===========
Diluted                                  $          (0.08)  $            0.13    $            0.26    $            0.39
                                                ===========    ===========    ===========    ===========

(*)  Calculated  using  related  GAAP  shares  outstanding

(1)  Three  months  ended  December  31,  2008  includes  $2,298  inventory  reserves
        charge  for  products  with  reduced  demand  and  a  $621  write  down  of
        certain  manufacturing  assets  held  for  sale;  Twelve  months  ended
        December  31,  2008  includes  inventory  reserves  charges  for  products
        with  reduced  demand  of  $3,508,  manufacturing  equipment  purchase
        cancellation  charges  of  $1,860,  a  write  down  of  certain  manufacturing
        assets  held  for  sale  of  $1,470  and  certain  separation  and  related
        costs.
(2)  Separation  and  transition  costs  of  $5,729  related  to  CEO  resignation
        were  charged  to  selling  and  administrative  expenses  in  the  third
        quarter  of  2008.




ANADIGICS,  INC.
Condensed  Consolidated  Balance  Sheets
(Amounts  in  thousands)

                                                                                                    December  31,  December  31,
                                                                                                            2008                  2007
                                                                                                    ------------  ------------
Assets                                                                                          Unaudited

Current  assets:
      Cash  and  cash  equivalents                                            $        123,552  $          57,786
      Marketable  securities                                                                13,340            103,778
      Accounts  receivable                                                                    25,384              45,664
      Inventory                                                                                        33,578              23,989
      Prepaid  expenses  and  other  current  assets                          3,121                3,277
                                                                                                    ------------  ------------
Total  current  assets                                                                      198,975            234,494

Marketable  securities                                                                        8,832              15,248
Plant  and  equipment,  net                                                                95,671              76,129
Goodwill  and  other  intangibles,  net  of
  amortization                                                                                                -                6,524
Other  assets                                                                                              299                1,066
                                                                                                    ------------  ------------
                                                                                                    $        303,777  $        333,461
                                                                                                    ============  ============

Liabilities  and  stockholders'  equity

Current  liabilities:
      Accounts  payable                                                              $          18,267  $          34,184
      Accrued  liabilities                                                                    13,203                7,928
      Accrued  restructuring  costs                                                      1,165                        -
      Convertible  notes                                                                        38,000                        -
                                                                                                    ------------  ------------
Total  current  liabilities                                                              70,635              42,112

Other  long-term  liabilities                                                            3,134                3,243
Convertible  notes                                                                                        -              38,000

Total  Stockholders'  equity                                                          230,008            250,106
                                                                                                    ------------  ------------
                                                                                                    $        303,777  $        333,461
                                                                                                    ============  ============

*  The  condensed  balance  sheet  at  December  31,  2007  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.
 

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