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Tuesday, Nov 5
Anadigics falls as Q4 guidance overshadows Q3 beat
- Though Anadigics (ANAD -7.4%) beat Q3 estimates, it's guiding for Q4 revenue to be flat to down 5% Q/Q. That's worse than a consensus for 10.5% growth. The RF chipmaker says weakening cellular chip sales (blamed on "market softness") are offsetting strong Wi-Fi and mobile infrastructure chip sales.
- Several other mobile chipmakers have also provided disappointing calendar Q4 guidance. The list includes Broadcom, Cirrus Logic, Synaptics, RF Micro, and TriQuint.
- Cellular chip sales jumped 27.8% Q/Q in Q3 to $23M. Wi-Fi front-end IC sales fell 12.4% Q/Q to $10M after soaring 135% in Q2 thanks to a Galaxy S4 design win; they still remain well above a Q4 level of $1.4M
- Gross margin was 11.9%, up sharply from Q2's 5.5% and a negative figure for the year-ago period. GM is expected to rise again in Q4 thanks to a mix shift towards Wi-Fi/infrastructure sales.
- Samsung was the company's only 10%+ customer. Anadigics mentioned on its CC (transcript) it has scored design wins for Samsung's Galaxy Note 3 and Note 10.1, and LG's flagship G2 smartphone. The company's Wi-Fi ICs are now included in nine reference designs.