ANADIGICS, Inc. (ANAD) recently announced that Thomas Shields has resigned from the positions of Chief Operating Officer, Executive Vice President, Chief Financial Officer and Secretary, effective November 14, 2011.
Consequently, Terrence Gallagher, who currently serves as Vice President, Finance and Controller, has been promoted to the positions of Vice President and Chief Financial Officer.
Meanwhile, Mr. Shields has agreed to provide consulting services to the company for a certain period to ensure an orderly transition.
Last month, ANADIGICS reported net sales of $37.3 million in the third quarter of 2011, up 4.7% sequentially but down 39.2% year over year. The improvement in revenues was due to quarterly increases in market share with a number of key wireless customers, which offset the previously expected quarterly declines with Research In Motion (RIMM).
Coming to revenue mix, wireless revenues accounted for 75% of total revenue while broadband accounted for the remaining 25%. Wireless revenues came in at $28 million, up 9.1% sequentially.
Broadband revenue of $9.3 million was down 6.1% sequentially, primarily due to a decline in WiMAX revenues while all other product lines were flat. The top customers in the third quarter were Samsung, ZTE, RIMM, Cisco (CSCO), Huawei, LG, World Peace Group, and Richardson Electronics.
Gross margin came in at 20%, flat with the last quarter. Net loss came in at $10.0 million or ($0.15) per diluted share compared to a net income of $2.3 million or $0.03 per share and a net income of $13.0 million or $0.19 per diluted share in the previous quarter. The reported figure was better than the Zacks Estimate of $0.20.
The company used $0.8 million of cash in operating activities and used $1.5 million in capital expenditures.
ANADIGICS ended the quarter with cash, cash equivalents, and marketable securities of $72.4 million, down from $103.4 million at the end of the previous quarter.
We continue to maintain a Neutral recommendation on ANADIGICS. Our recommendation is supported by a Zacks #3 Rank, which translates into a short-term rating of Neutral.
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