Anadigics (Nasdaq: ANAD) reported Friday that rocketing sales, and an 88 percent increase in wireless revenue drove net income up to 16 cents a share for its third quarter, beating First Call's estimate of 11 cents a share.
Shares in the maker of chips for the broadband and wireless markets were up 7/8 to 36 1/4 Friday morning.
Net sales were up 61 percent to $35.5 million, as compared to $22 million in the 1998 third quarter. Record sales of integrated circuits for both wireless and broadband communications applications spurred the boom.
Anadigics tallied net income of $2.7 million, or 16 cents a share, excluding a reversal of $441,000 of previously accrued restructuring charges which would put earnings at 15 cents a share. This quarter's net income compares well with the break-even results in the third quarter of 1998.
Excluding special charges, gross margin for the 1999 third quarter improved to 46.8 percent from 31.2 percent in the 1998 quarter. Research and development expenses were $8.3 million, a 91 percent increase from $4.3 million in the third quarter of 1998. Anadigics said it plans to accelerate process technology investments, particularly HBT technology for Wireless Power Amplifiers, and 10 Gbps Fiber applications.
Highlights for the quarter include the transition from 4-inch Fab 1 to 6-inch Fab 2 ahead of schedule, and the closure of Anadigics' four-inch wafer fabrication facility one and a half months ahead of schedule. Anadigics also launched its wireless RF product line launched and opened a new design center.