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Anadigics tops 4Q estimates, issues stock split

Anadigics, Inc. (Nasdaq: ANAD) said Friday fourth quarter earnings were 22 cents a share, blasting past First Call's estimate of 16 cents a share. The company also announced a 3-for-2 stock split.

Shares in the supplier of radio frequency (RF) integrated circuit solutions for the communications markets closed at 77 1/8 Thursday, down slightly from its recent 52-week high of 83 1/16. The stock sharpened its steady climb after it predicted bigger-than-expected revenue in its third quarter on its booming wireless business.

Earnings of $4.4 million, or 22 cents a share, show a strong turn-around from 1998's fourth quarter loss. It was also up a whopping 83 percent sequentially over the $2.4 million or 15 cents a share recorded in the 1999 third quarter.

Net sales were $40.1 million for the quarter, up 78 percent over the $22.6 million reported in 1998's fourth quarter, and up 13 percent sequentially over the $35.5 million in net sales reported in the third quarter of 1999.

Full year results showed net sales of $131.1 million, double 1998's net sales of $86.1 million. Net income for 1999, excluding one-time charges, was $11.6 million or 69 cents a share.

Growth was fueled by a strong wireless handset market that drove demand for power amplifiers, the company said. The introduction of its new 3-volt HBT power amplifiers and RF switches should give Anadigics an even greater share of this market in the future.

Wireless products led growth with a 77 percent year-over-year increase, cable products rose 38 percent year-over-year, but just 7 percent sequentially. Fiber products yielded 33 percent year-over-year growth.

As the company switched over its previous 4-inch fabrication facility to a new 6-inch GaAs fab, gross margins improved by 48.1percent sequentially. The company said its relationships with Ericsson (Nasdaq: ERICY), Motorola (NYSE: MOT) and Scientific-Atlanta (NYSE: SFA) have also improved.

In a separate release Friday, Anadigics announced a 3-for-2 stock split in the form of a stock dividend. The record date for the stock split is February 10, 2000 and the effective date is February 29, 2000.