Anadigics Fourth Quarter Sales Down on Supply Difficulties

Anadigics, a provider of semiconductors for the broadband wireless and wireline markets, has reported fourth quarter 2008 net sales of US$45.2 million, a decrease of 22% sequentially and a decrease of 33% from the fourth quarter of 2007. Revenue for the year ended 2008 was $258.2 million, up 12% from 2007.

Net loss for the fourth quarter of 2008 was US$36.4 million, while the net loss for the year ended 2008 was US$41.9 million.

"2008 was a challenging year," said Gilles Delfassy, chairman of the board. "We had a very strong first half due to the success of our products. However, we weren't able to completely satisfy the high product demand at that time, which resulted in a loss of market share at certain customers in the second half. This has been compounded by the recent economic slowdown with customers delaying orders to reduce their exposure in this weak and continuingly uncertain economic environment. With these factors, we expect to see a decline of approximately 35% in our first quarter 2009 net sales as compared to net sales in the fourth quarter of 2008."

Mario Rivas, Anadigics' newly appointed president and chief executive officer, echoed Gilles' comments. "Customer wins that were announced in the fall of 2008 are now ramping in production, resulting in market share gains at those customers. With the new designs scheduled to ramp in the second half of 2009, we believe we are well positioned to resume growth during the next product cycle. I am encouraged that Anadigics can emerge out of this downturn a stronger company."

The company also warned that net sales for the first quarter 2009 are expected to decline approximately 35% from fourth quarter 2008.

Posted to the site on 27th February 2009