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Narrower Q3 Loss for ANADIGICS

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Semiconductor manufacturer ANADIGICS, Inc. continued its listless performance in third quarter 2013 as it registered a loss of $11.2 million or 13 cents per share. However, the reported figure was narrower than a loss of $17.0 million or 24 cents per share in the year-ago quarter.

Excluding one-time items, adjusted net loss for the reported quarter came in at 11 cents per share vis-à-vis a loss of 21 cents per share in the year-earlier quarter. The adjusted loss per share for third quarter 2013 was narrower than the Zacks Consensus Estimate of a loss of 14 cents.

Total revenue for third quarter 2013 was $37.0 million, up 29.2% year over year. Cellular wireless segment contributed $23.0 million to total revenue, while legacy WiFi and Infrastructure accounted for $10.0 million and $4.0 million, respectively.

Revenues improved 7.1% sequentially, driven by a stellar performance by Cellular wireless segment (up 27.8%). Legacy WiFi segment revenues were down 12.4% sequentially, while Infrastructure segment revenues declined 22.7% on lower spending by companies.

During the reported quarter, ANADIGICS continued to improve its cost structure by stringent cost-cutting initiatives, while maintaining a sharp focus on new product developments. Gross profit improved by $2.5 million sequentially to $4.4 million, while gross margin for the quarter increased 640 basis points on a sequential basis to 11.9%. The margin improvement was primarily driven by higher manufacturing throughput and other operational efficiencies with an optimization of ILD technology, higher yields, larger volumes of newer products and improvement on production costs.

ANADIGICS ended the quarter with cash and equivalents of $26.2 million. Inventories stood at $22.7 million or approximately 59 days. During the quarter, ANADIGICS incurred $1.7 million in capital expenditures while capacity utilization was 70%.

Management did not provide any specific guidance for the coming quarter. ANADIGICS expects sequential sales growth in the coming quarter with strong bookings to date, driven by design wins in cellular and WiFi products.

ANADIGICS continues to focus on three market drivers that it believes will expand its served available market. These drivers include the rapid adoption of 3G and 4G data connectivity in wireless mobile devices, expansion of wireless and CATV infrastructure to support increase data use, and proliferation of high performance WiFi connectivity in mobile devices.

ANADIGICS presently has a Zacks Rank #3 (Hold). Other players in the industry that are worth mentioning include Amkor Technology, Inc. (AMKR - Free Report) , Cavium, Inc. (CAVM - Free Report) and Cirrus Logic Inc. (CRUS - Free Report) , each carrying a Zacks Rank #2 (Buy).

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