Premier semiconductor manufacturer Anadigics, Inc. (ANAD) recently updated its guidance for fourth-quarter 2014 in an investor presentation at the 17th Annual Needham Growth Conference held at The New York Palace in New York City. The CEO and the Vice President of the company offered a sneak preview of the near-term growth objectives of the company at the conference.
Management reiterated that the fourth-quarter 2014 revenues will likely grow 8%–12% on a sequential basis, which is in line with its earlier guided range. In concurrence with the third-quarter 2014 results, Anadigics offered its outlook for the soon-to-be-reported quarter. Although management did not provide any specific guidance for the fourth quarter of 2014 then, Anadigics expected sequential revenue to improve 8% to 12%, driven by higher demand in the mobile business.
In addition, considerable improvements in the cost structure and improved product mix were expected to enable gross margin expansion of 200 basis points sequentially. Operating expenses were expected to be flat sequentially, leading to EBITDA improvement of about 25% to 30%.
Anadigics continues to expect a 200 basis point sequential improvement in non-GAAP gross margin. The company currently expects net cash (total cash minus bank debt) at year-end 2014 to be approximately $14.4 million – a decent improvement from $9.5 million at the end of third-quarter 2014.
Headquartered in Warren, NJ, Anadigics designs and manufactures semiconductor solutions for the broadband wireless and wireline communications markets. Its products include power amplifiers, tuner integrated circuits, active splitters, line amplifiers and other components. The company offers products with exceptional reliability, performance and integration to deliver a unique competitive advantage to Original Equipment Manufacturers for infrastructure and mobile applications.
Anadigics currently has a Zacks Rank #3 (Hold). Other stocks that look promising and are worth considering include Cirrus Logic Inc. (CRUS), AXT Inc (AXTI) and Mellanox Technologies, Ltd. (MLNX), each carrying a Zacks Rank # 2 (Buy).
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