Though Anadigics (ANAD +7.6%) hasn't turned a profit since 2010, the chipmaker's cost-cutting and mix-optimization efforts leave it in a good position to reach EBITDA break-even in Q3 or Q4, thinks SA author Stock Doctor.
The author estimates EBITDA break-even now requires ~$33M/quarter in revenue, down from ~$50M/quarter in 2010. Wi-Fi front end IC and/or power amplifier design wins with the likes of Samsung, Huawei, ZTE, and Coolpad are expected to provide a lift.
Stock Doctor adds Anadigics' 0.67 P/S ratio is a fraction of that of peers such as RF Micro, TriQuint, and Skyworks, and thinks a $14M cash balance and $11M credit line mean liquidity isn't a concern.
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