ANADIGICS (ANAD) reported net sales of $35.6 million in the second quarter of 2011, down 18.1% sequentially and down 31.1% from a year ago. The results were in-line with management’s guidance and the Zacks Consensus Estimate of $36 million.
The sequential decline in the second quarter was primarily due to a decrease in shipments to one of the largest North American customers – Research In Motion (RIMM).
Coming to revenue mix, wireless revenues accounted for 72% of total revenue while broadband accounted for the remaining 28%. Wireless sales of $25.7 million declined by $10.6 million sequentially primarily due to a decline in contribution from RIMM.
RIMM accounted for 22% of total company revenue compared to 38% of revenue in the last quarter, a decline of $9 million sequentially. Top customers in the quarter included RIMM, Samsung, ZTE, Cisco, Huawei, and LG.
Broadband revenue came in at $9.9, an increase of $2.7 million driven by strong shipments in cable infrastructure.
Gross margin came in at 20%, in line with management’s expectations as the sequential increase in broadband revenue was offset but a sequential decline in wireless revenue and lower quarterly fab utilization.
Net income came in at $13.0 million or $0.19 per diluted share compared to a net income of $0.8 million or $0.01 per diluted share in the year-ago quarter.
Excluding one-time items but including stock-based compensation, net loss came in at $0.18, better than our estimate of $0.20.
ANADIGICS ended the quarter with cash, cash equivalents, and marketable securities of $103.4 million, down by $0.6 million sequentially.
Management suspended providing any financial guidance due to the uncertainty in markets. ANADIGICS stated that the shift in wireless customer mix, particularly to Korea and China, has led to very short order lead times. Nevertheless, the company is encouraged by progress being made on new design opportunities with other wireless customers, particularly in Korea and China. The company also announced key design wins on high profile Samsung Droid phones and LG revolution.
ANADIGICS also remains on track with initiatives to expand revenue opportunities over the longer term with its new products for the wireless 3G/4G/LTE and broadband markets.
ves to expand revenue opportunities over the longer term with its new products for the wireless 3G/4G/LTE and broadband markets.
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