ANADIGICS, Inc. Earnings: Streak of Three Straight Losses Snapped

ANADIGICS, Inc. (NASDAQ:ANAD) reported its results for the first quarter. Anadigics is a provider of semiconductor solutions in the growing broadband wireless and wireline communications markets.

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ANADIGICS Earnings Cheat Sheet for the First Quarter

Results: Reported a profit of $15.8 million (21 cents per diluted share) in the quarter. ANADIGICS, Inc. had a net loss of $10.7 million or a loss 16 cents per share in the year-earlier quarter.

Revenue: Fell 34.6% to $28.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: ANADIGICS, Inc. fell in line with the mean analyst estimate of a loss of 21 cents per share. Analysts were expecting revenue of $28.6 million.

Quoting Management: “To proactively manage costs while prioritizing new product development, we recently completed a reduction in workforce and are implementing other cost improvement actions. In combination with the first quarter’s restructuring, these actions are expected to improve our annualized cost structure by over $8 million when fully absorbed.” said Terry Gallagher, vice president and CFO. “In commenting on the second quarter, we expect a sequential reduction in revenue principally due to a final step down in sales to our former top customer.”

Key Stats:

For four consecutive quarters, revenue has fallen. Revenue declined 39.4% to $36.5 million in the fourth quarter of the last fiscal year. The figure fell 39.2% in the third quarter of the last fiscal year from the year earlier and dropped 31.1% in the second quarter of the last fiscal year from the year-ago quarter.

The company’s profit in the latest quarter follows losses in the three previous quarters. The company reported a net loss of $15.6 million in the fourth quarter of the last fiscal year, a loss of $10 million in the third quarter of the last fiscal year and a loss of $13.1 million in the second of the last fiscal year.

The company has now fallen in line with estimates for the past two quarters. It reported a loss of -16 cents in the fourth quarter of the last fiscal year.

Looking Forward: For the next quarter, analysts are increasingly pessimistic about the company’s performance. The average estimates for the second quarter is at a loss of 20 cents per share, down from 16 cents ninety days ago. Down from a loss of 55 cents per share ninety days ago, the average estimate for the fiscal year is now a loss of 78 cents.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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