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ANADIGICS Announces Strategic Restructuring And Updated Q2 2014 Guidance

Stocks in this article: ANAD

  • Strategic restructuring expected to lower manufacturing and operating cash costs by approximately $15 million annually
  • Company-wide resources aligned to leverage growth opportunities in the rapidly expanding infrastructure market and enhance service to strategic mobile-product customers
  • 2Q14 revenue guidance lowered to approximately $23 million; non-GAAP loss per share anticipated to be approximately $0.10
  • Conference call scheduled for 5 PM EDT on Thursday, June 26, 2014

WARREN, N.J., June 26, 2014 (GLOBE NEWSWIRE) -- ANADIGICS , Inc. (Nasdaq:ANAD), a world leader in radio frequency (RF) solutions , announced today it is restructuring its business model to lower its operating costs and better align resources to address growth opportunities in rapidly expanding infrastructure markets.

"With a strong infrastructure design-win trajectory, I'm pleased we're able to accelerate our strategy to expand in infrastructure markets, and with that, lower our fixed manufacturing and operating costs," said Ron Michels, chairman and CEO of ANADIGICS. "We believe that these steps, coupled with our previously announced $10 million cost-savings initiatives, should enable the Company to deliver significant EBITDA improvements and profitability leverage from a lower breakeven revenue level."

Strategic Restructuring

Since the 1Q14 earnings call, ANADIGICS has made stronger-than-expected progress in infrastructure-targeted activities and experienced a decline in demand for some of the Company's legacy mobile products. In response, the Company is restructuring to expand its presence in the infrastructure space and reduce the fixed costs associated with the legacy mobile business.

ANADIGICS' infrastructure-targeted products have a higher revenue- and profit-per-wafer than mobile-targeted products. The Company believes that, with an increasing percentage of future revenues coming from infrastructure products, the manufacturing capability and staff can be resized to better match the new wafer quantity required.

The reduced in-house wafer demand is expected to enable more efficient manufacturing operations and allow the Company to monetize certain excess wafer processing equipment. It is expected that the proceeds from these sales will help offset a significant portion of the cash costs of the restructuring.

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