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)
WARREN, N.J., February 20, 2014—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 information.
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.
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. 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 www.anadigics.com/investors or by dialing 855-859-2056 conference ID 70745040 (available until February 27, 2014).