The company has reported fourth quarter 2008 net sales of $45.2 million, a decrease of 22% sequentially and a decrease of 33% from the fourth quarter of 2007.
As of December 31, 2008, cash, cash equivalents and short and long-term marketable securities totaled $145.7 million.
Net loss for the fourth quarter of 2008 was $36.4 million, or ($0.60) per share. Non-GAAP net loss for the fourth quarter of 2008 was $4.9 million, or ($0.08) per share. Non-GAAP financial measures exclude charges of $31.4 million or ($0.52) per share associated with stock based compensation, asset impairments, including the termination of our China fab project, inventory, impairment of auction rate securities and a reduction in workforce. Non-GAAP net income for the year-ended 2008 was $15.8 million or $0.26 per share compared with $23.1 million or $0.39 per diluted share for the year ended 2007.
“2008 was a challenging year, said Gilles Delfassy, chairman of the board. We had a very strong first half due to the success of our products. However, we weren’t able to completely satisfy the high product demand at that time, which resulted in a loss of market share at certain customers in the second half. This has been compounded by the recent economic slowdown with customers delaying orders to reduce their exposure in this weak and continuingly uncertain economic environment. With these factors, we expect to see a decline of about 35% in our first quarter 2009 net sales as compared to net sales in the fourth quarter of 2008. And although we are aggressively managing expenses, the underutilization of our fab will continue to put pressure on gross margins until supply and demand are better aligned.”
“At the same time however, we have many reasons to be encouraged about our future”, continued Delfassy. “The plan we put in place to improve operational efficiencies and responsiveness to customers is producing results. We are achieving dramatic improvements in cycle times, yields and delivery of new product samples. More importantly, these improvements along with the technical advantages of our products have resulted in renewed traction with our customers as we are engaged in many of their new programs.”
Mario Rivas, ANADIGICS’ newly appointed president and chief executive officer echoed Gilles’ comments. “Customer wins that were announced in the fall of 2008 are now ramping in production, resulting in market share gains at those customers. With the new designs scheduled to ramp in the second half of 2009, we believe we are well positioned to resume growth during the next product cycle. I am encouraged that ANADIGICS can emerge out of this downturn a stronger company.”
Outlook for the First Quarter 2009:
Net sales for the first quarter 2009 are expected to decline about 35% from fourth quarter 2008. Net loss per share on a GAAP basis for the first quarter 2009 is expected to be about $0.33. Non-GAAP loss per share, excluding non-cash stock compensation expense, is expected to be about $0.28. The net loss and non-GAAP loss per share are based on an estimated diluted weighted average outstanding common share count of 62 million.
