News

8 August 2008

 

Anadigics slashes Q3 revenue guidance from $75-81m to $62-65m

GaAs-based wireless and broadband communications component maker Anadigics of Warren, NJ, USA has lowered its third-quarter 2008 financial guidance to a net loss per share of $0.08-0.10, or income of $0.01 to a loss of $0.01 (excluding non-cash stock compensation expense) on revenue from $75-81m (given on 22 July) to $62-65m (from up 26-36% to up just 4-9% on $59.5m a year ago, and from roughly flat on last quarter’s record $80.5m to down 19-23%). The revision is a result of a further weakening in demand from the firm’s wireless handset customers in the past week, according to president and CEO Dr Bami Bastani, and represents an end to 13 consecutive quarters of growth for Anadigics.

Due to this, as well as the weakening economy, while Anadigics remains committed to completing construction of its new wafer fabrication plant in the Kunshan New and Hi-Tech Industrial Development Zone, Jiangsu province, China by October (as announced on 22 July), it has made the ‘prudent’ decision of delaying the additional capital investment above the $49.88m originally contemplated (doubling the total to about $100m) until it has better visibility as to when it needs the plant to become operational. Anadigics broke ground on constructing its second 6” GaAs fab o n 9 July, which should ultimately double the firm’s existing capacity (joining its first 6” GaAs fab in Warren).

However, Bastani adds that Anadigics remains optimistic about the growth of the wireless 3G handset market and is confident of its ability to provide best-of-breed products.

See related items:

GaAs microelectronics market to slow to 9% in 2008

Economic slowdown bypasses mobile device market

Anadigics’ sales grow to record $80.5m, driven by broadband

GaAs market grew 17% to $3.6bn in 2007

Anadigics to build 6-inch GaAs fab in China

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