Anadigics, Inc. (Nasdaq: ANAD) said today second quarter earnings were $2 million, or 12 cents a share, beating First Call's estimate of 9 cents a share on record sales.
Shares in the company, which makes radio frequency integrated circuit for broadband and wireless communications markets, closed Thursday at 35 3/4, below their 52-week high of 39 1/4.
Net sales for the 1999 second quarter increased 35 percent to $30.5 million, compared to $22.7 million in the second quarter of 1998. Sales growth for the quarter was driven by strong performance in sales of integrated circuits for wireless applications, where sales increased 75 percent from last year's second quarter to $13.1 million, the company said. Fiber Optic integrated circuit sales growth for the quarter also contributed, up 43 percent to $6.9 million.
Net income did not include special charges during the turbulent quarter, in which Anadigics faced $2.7 million in expenses for the planned closing of the company's 4-inch wafer fabrication facility, and the provision for the settlement of a lawsuit filed in 1998, a $6.9 million charge. The company announced it would take $13 million in charges and close its manufacturing plant last December. Including the special charges, the company reported a loss of $4.1 million, or 27 cents a share during the second quarter of 1999.
"New product introductions and bookings are at record levels, we're ahead of our timetable for the opening of Fab 2, and our enhanced manufacturing process efficiencies are in full play,'' said Dr. Bami Bastani, President and Chief Executive Officer in a company release. "We plan to continue to make investments that should position us for sales growth in the wireless and broadband markets,'' he added.
Research and development expenses were $6.4 million for the second quarter, compared to $5.1 million in the same period last year.
Anadigics edged above fourth quarter estimates on slow sales. Five out of 9 analysts covering the stock rate it a "buy", and three call it a "hold" according to Zacks Investment Research.