ANADIGICS Reports Fourth Quarter and Fiscal Year 2005 Results

WARREN, N.J., Feb. 6 /PRNewswire-FirstCall/ -- ANADIGICS, Inc. (NASDAQ: ANAD), a leading supplier of wireless and broadband communications solutions, reported fourth quarter 2005 net sales of $33.3 million, an increase of 14% compared to net sales of $29.3 million in the prior quarter, and an increase of 49% compared to net sales of $22.4 million in the year ago quarter. The net loss for the quarter was $3.9 million, or $0.11 per share, compared with a net loss of $6.8 million, or $0.20 per share, in the prior quarter, and a net loss of $10.3 million, or $0.31 per share, in the year ago quarter.

For the fiscal year ended December 31, 2005 net sales were $108.3 million, an increase of 18% compared to net sales of $91.4 million in fiscal year 2004. The net loss for fiscal year 2005 was $31.2 million, or $0.92 per share, compared with a net loss of $43.1 million, or $1.33 per share, in the prior year.

As of December 31, 2005, cash and short and long-term marketable securities totaled $86.4 million compared with $87.2 million at the end of the third quarter 2005, a reduction of $0.8 million.

"We improved our gross margin to 26.5% of net sales or approximately 400 basis points over the prior quarter, and significantly reduced our loss per share in the fourth quarter and for fiscal year 2005," said Tom Shields, Executive Vice President and Chief Financial Officer of ANADIGICS. "We expect financial leverage resulting from both a margin enriched product mix as well as anticipated improved fab utilization to further improve our operating performance in 2006."

"I am extremely pleased with the considerable financial progress achieved in the fourth quarter 2005, which I believe represents an inflection point in our business," said Dr. Bami Bastani, President and Chief Executive Officer of ANADIGICS. "I expect our market share expansion in GSM/GPRS, EDGE and 3G WEDGE wireless handsets and 3G embedded applications coupled with continued growth and the strong position of our broadband products in the WLAN, integrated tuner IC, and CATV infrastructure markets, to further enhance our market leadership and results of operations in 2006."

Outlook for the First Quarter 2006

Net sales for the first quarter of 2006, which is typically down seasonally, is estimated to be flat to up 5% sequentially, and up by approximately 53% to 61%, compared to the year ago quarter. We expect our net loss in the first quarter of 2006 to be $0.12 to $0.14 per share, which includes an estimated non-cash share-based compensation expense of $0.04 per share. Non-cash share-based compensation expense in the prior quarter and year ago quarter were approximately $0.02 per share.

RECENT HIGHLIGHTS

December 19, 2005 - ANADIGICS Announces RF Front-End Reference Designs for Multi-Tuner Digital Terrestrial Televisions and DVR/PVR Set-Top Boxes

December 12, 2005 - ANADIGICS Announces New Family of WLAN Front-End Solutions for Mobile and MIMO Markets

November 14, 2005 - ANADIGICS Introduces 10 W RF Switch

November 9, 2005 - ANADIGICS Selected as Primary Supplier for Sierra Wireless' HSDPA AirCard(R) Products

November 8, 2005 - ANADIGICS Expands Line Amplifier Product Portfolio with New 1 GHz Products

November 7, 2005 - ANADIGICS Powers LG Electronics VX9800 EV-DO Multimedia Handset

October 19, 2005 - ANADIGICS Unveils High Performance Fiber-to-the- Home/Fiber-to-the-Premise RF Amplifier

CONFERENCE CALL

ANADIGICS' senior management will conduct a conference call today at 8:30 AM Eastern time. A live audio Webcast will be available at www.anadigics.com. 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 (800) 839-9302 (available until February 13).

ANADIGICS, Inc. (NASDAQ: ANAD) designs and manufactures radio frequency integrated circuit (RFIC) solutions for growing broadband and wireless communications markets. The Company's innovative high frequency RFICs enable manufacturers of communications equipment to enhance overall system performance, and reduce manufacturing cost and time to market. By utilizing state-of-the-art manufacturing processes for its RFICs, ANADIGICS achieves the high-volume and cost-effective products required by leading companies in its targeted high-growth communications markets. ANADIGICS was the first GaAs IC manufacturer to receive ISO 9001 certification and is certified to the ISO 9001:2000 and ISO 14001:1996 quality standards.

Except for historical information contained herein, this press release contains forward-looking statements that involve risks and uncertainties, including, but not limited to, order rescheduling or cancellation, changes in customers' forecasts of product demand, timely product and process development and protection of the associated intellectual property rights, individual product pricing pressure, variation in production yield, changes in estimated product lives, difficulties in obtaining components and assembly and test services needed for production of integrated circuits, change in economic conditions of the various markets the Company serves, as well as the other risks detailed from time to time in the Company's reports filed with the Securities and Exchange Commission, including the report on Form 10-K for the year ended December 31, 2004. Actual results could differ materially from the Company's forward-looking statements. These forward-looking statements 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 the Company's future plans, objectives, estimates, or goals are forward-looking statements. Important factors that could cause actual results and developments to be materially different from those expressed or implied by such statements include those factors discussed herein.



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

                                          December 31, 2005  December 31, 2004
    Assets                                    (Unaudited)

    Current assets:
      Cash and cash equivalents                 $11,891            $11,171
      Marketable securities                      70,364             63,615
      Accounts receivable                        18,755             10,770
      Inventory                                  16,009             14,436
      Prepaid expenses and other current assets   2,188              3,073
    Total current assets                        119,207            103,065

    Marketable securities                         4,102             29,265

    Plant and equipment, net                     36,307             43,038

    Goodwill and other intangibles,
       net  of  amortization                                                    6,044                            6,297
        Other  assets                                                                    2,613                            4,230
                                                                                              $168,273                      $185,895

        Liabilities  and  stockholders'  equity

        Current  liabilities:
            Accounts  payable                                                    $15,519                          $8,021
            Accrued  liabilities                                                  4,672                            4,783
            Accrued  restructuring  costs                                        40                                726
            Current  Portion  of  Long-Term  Debt                    46,700                                    -
            Capital  lease  obligations                                          269                                  18
        Total  current  liabilities                                        67,200                          13,548

        Other  long-term  liabilities                                      3,175                            3,032
        Long-term  debt                                                              38,000                          84,700
        Long-term  capital  lease  obligations                      1,763                                    -

        Stockholders'  equity                                                  58,135                          84,615
                                                                                              $168,273                      $185,895



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

                                                              Three  months  ended                    Year  Ended
                                                      December  31,  December  31,  December  31,  December  31,
                                                              2005                  2004                  2005                  2004
                                                      (Unaudited)    (Unaudited)    (Unaudited)

        Net  sales                                  $33,301            $22,415          $108,281          $91,350
        Cost  of  sales                            24,475              19,162              85,929            77,355
        Gross  profit                                8,826                3,253              22,352            13,995
        Research  and  development
          expenses                                      7,179                7,654              29,906            33,306
        Selling  and
          administrative  expenses        5,001                5,140              21,293            22,511
        Restructuring  and  other
          charges                                                -                        -                  (120)                    -
        Operating  loss                          (3,354)            (9,541)          (28,727)        (41,822)
        Interest  income                              690                    524                2,473              2,203
        Interest  expense                      (1,249)            (1,250)            (4,997)          (4,085)
        Gain  on  notes  repurchase                -                        -                        -                  327
        Other  income  (expense)                    -                    (13)                    18                  295
        Net  loss                                    $(3,913)        $(10,280)        $(31,233)      $(43,082)

        Loss  per  share                          $(0.11)            $(0.31)            $(0.92)          $(1.33)

        Weighted  average  common
          shares  outstanding                34,405              32,934              34,012            32,413

 


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