Anadigics Lowers 3rd Quarter Revenue Target

Semiconductor manufacturer, Anadigics has lowered its third quarter 2008 financial guidance resulting from a decrease in product demand from its wireless handset customers. In addition, the Company reported that it will delay the previously announced acceleration of investment in wafer capacity plans in Kunshan, China

Net sales for the third quarter 2008 are now estimated to be in the range of $62 million to $65 million, from the earlier guidance ranging from $75 million to $81 million.

As a result of the lower third quarter 2008 financial guidance and weakening economy, the Company reported that while it remains committed to the completion of construction of the facility in Kunshan, China by October 2008, as previously announced on July 22, 2008, it will defer the additional capital investment above the $49.88 million originally contemplated until the Company has better visibility as to when it needs the facility to become operational.

"In the past week we have seen further weakening in demand from our wireless handset customers and as a result are lowering our financial guidance for the third quarter 2008 and have made the prudent decision of delaying the additional capital expenditures in China," said Dr. Bami Bastani, President and CEO. "We remain optimistic about the growth of the wireless 3G handset market and confident in our ability to provide best of breed products."

Posted to the site on 8th August 2008