Thu, Nov. 12, 10:44 AM
- Privatelly-owned RF chipmaker GaAs Labs is buying Anadigics (NASDAQ:ANAD) for $0.35/share (roughly $31M) through a cash tender offer. The price represents a 46% premium to Wednesday's close, but is 53% below where Anadigics started the year, and over 90% below where shares traded five years ago.
- The deal, announced within Anadigics' Q3 report, is expected to close in December or January. Anadigics can solicit superior proposals during a 25-day go-shop period.
- A look at Anadigics' Q3 numbers helps explain the company's decision to sell. Revenue fell 23% Q/Q and 36% Y/Y to $12.1M, net loss totaled $6.2M, and net cash fell to $7.9M from $11.2M at the end of Q2.
Fri, Aug. 7, 10:55 AM
- While its Q2 revenue only slightly missed estimates, Anadigics (NASDAQ:ANAD) is guiding for Q3 revenue of $12M-$12.6M, far below a $17.7M consensus. Gross margin is expected to drop 500-800 bps Q/Q from Q2's 20.5%.
- Weak demand from small cell base station and cable TV infrastructure clients is expected "through the end of 2015," and "legacy" mobile, WiMAX, and IoT-related sales are expected to continue declining. The small cell weakness is blamed on "continued delays at major carriers in Asia."
- With Anadigics' cash balance having fallen another $1.8M in Q2 to $15.2M, and more cash burn expected in Q3, the company is "exploring capitalization options that may provide adequate cash infusion over the next twelve months."
- With liquidity and dilution concerns running high, Anadigics is now trading below $0.25. The RF component maker's market cap is around $20M.
- Q2 results, PR
Fri, Jun. 26, 2:48 PM
- Chip stocks are seeing outsized losses (SOXX -2.6%) amid a 0.8% drop for the Nasdaq following DRAM/NAND flash giant Micron's FQ3 miss and weak FQ4 guidance - the numbers were blamed on a mixture of soft PC demand, associated DRAM price pressure, and a manufacturing process transition. Some analysts have argued Micron's issues are at least partly company-specific and/or that PC and DRAM demand will improve in 2H15.
- The Philadelphia Semi Index is now down 7% from a June 1 peak of $101.80. It's still up 2% YTD, and (thanks partly to an industry M&A wave) roughly 2x from its fall 2012 lows.
- In addition to PC-exposed Intel and AMD, chip stocks sporting large declines include Qorvo (QRVO -4.9%), Sigma Designs (SIGM -5.7%), MoSys (MOSY -7.9%), Anadigics (ANAD -10.8%), Silicon Motion (SIMO -6.5%), Inphi (IPHI -5.3%), PMC-Sierra (PMCS -3.8%), ON Semi (ON -4.2%), AppliedMicro (AMCC -3.7%), and Vimicro (VIMC -5.3%).
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Thu, Jun. 18, 1:15 PM
- Car-buying site TrueCar (TRUE +9.3%), online furniture leader Wayfair (W +11%), and RF component maker Anadigics (ANAD +9.7%) are among the standouts on a day the Nasdaq is up 1.4%.
- TrueCar and Wayfair's volumes have already topped their 3-month daily averages. Short-covering could be helping each company out: TrueCar had 10M shares (19% of the float) shorted as of May 29, and Wayfair had 8.1M shares (29% of the float) shorted.
- TrueCar closed yesterday just $0.24 above a post-IPO low of $11.93, and Anadigics closed $0.10 above an all-time low of $0.55. Wayfair, by contrast, is now less than $1 away from a post-IPO high of $39.43.
Wed, May 27, 3:00 PM
- Chip stocks are posting outsized gains (SOXX +4%) amid a 1.3% increase for the Nasdaq after the WSJ reported Avago and Broadcom are in advanced merger talks, sparking hopes for further M&A.
- A Broadcom/Avago deal would be worth ~$67B at current valuations, easily making it the largest in the chip industry's breathless consolidation wave. It would also touch markets ranging from smartphones to set-tops to servers to switches/routers.
- Notable gainers include Avago RF chip peers Skyworks (SWKS +4.3%), Qorvo (QRVO +3.2%), and Anadigics (ANAD +4.9%). Others include Micron (MU +3.8%), SanDisk (SNDK +4.3%), NXP (NXPI +3.5%), Silicon Motion (SIMO +8.3%), Cirrus Logic (CRUS +4.8%), STMicroelectronics, (STM +3.4%), Synaptics (SYNA +3.4%), Atmel (ATML +2.8%), Cavium (CAVM +4.5%), Intersil (ISIL +4.6%), Semtech (SMTC +3.9%), ON Semi (ON +3.8%), Microsemi (MSCC +4.4%), and IDT (IDTI +4.2%).
- Non-chipmakers tied to the industry are also doing well. Standouts include ARM (ARMH +4.4%), Amkor (AMKR +4.6%), ASML (ASML +3.1%), and Rambus (RMBS +3.3%).
- Chip ETFs: SMH, XSD, PSI, SOXL, USD, SOXS, SSG
Wed, May 6, 12:45 PM
Wed, May 6, 10:44 AM
- Though Anadigics (NASDAQ:ANAD) posted in-line Q1 revenue and slightly beat on EPS, it's guiding for Q2 revenue to be 10%-15% Q/Q. That implies a range of $15.7M-$16.6M, well below a $20M consensus.
- Mobile device chip sales are expected to fall 20%-25% Q/Q - Anadigics has been de-emphasizing the business - and telecom infrastructure chip sales are expected to fall 7%-9% following a 23.3% Q1 increase. Gross margin is expected to drop by 100-300 bps Q/Q, and operating expenses by 5%-7%.
- On the CC (transcript), CEO Ron Michaels blamed the infrastructure guidance on "some softness in forecasted demand from a key Wi-Fi infrastructure customer," and on "a slower rate of small cell deployment than previously anticipated, due in part to certain carriers delaying the award of hardware contracts to OEMs."
- Anadigics is counting on stronger 2H15 small cell growth and design wins for DOCSIS 3.1 cable infrastructure hardware to provide a boost later in the year. 75% of revenue is expected to be infrastructure-related by year's end. The company also offered light guidance in February.
- Q1 results, PR
Wed, May 6, 9:11 AM
Thu, Mar. 26, 3:19 PM
- Today's notable tech gainers include ultracapacitor maker Maxwell (MXWL +4.6%), SMB Web services firm Web.com (WWWW +3.7%), health site owner WebMD (WBMD +3.7%), and RF chipmaker Anadigics (ANAD +11.3%).
- Notable decliners include NAND flash controller/4G transceiver maker Silicon Motion (SIMO -4%), hybrid storage array vendor Nimble Storage (NMBL -3.8%), local ad services provider Dex Media (DXM -8.5%). The Nasdaq is down 0.2%.
- Maxwell's gains come a day after the company announced an ultracapacitor-based engine start module will be offered for two new Kenworth trucks. Silicon Motion has joined a slew of other chip stocks in selling off for the second day in a row. Nimble is trading near its January lows, while Dex has made fresh 52-week lows.
- Previously covered: Cybersecurity stocks, SolarEdge, Infinera, Accenture, SuperCom, Neustar, Textura, ASML, GoPro, SanDisk, Red Hat
Mon, Feb. 9, 1:05 PM
- Anadigics (ANAD +8%) has received "a NASDAQ compliance determination that the Company has regained compliance with NASDAQ Listing Rule 5450(a)(1), which requires that listed securities maintain a minimum closing bid price of $1.00 per share." The RF chipmaker originally received a non-compliance letter last August.
- Shares are at their highest levels since last June, when they plunged in response to a Q2 warning that was a accompanied by a major restructuring announcement.
- Anadigics affirmed its Q4 sales guidance last month, while forecasting gross margin would be better than expected and that it would report a quarter-ending cash balance of $14.4M (up from $9.5M at the end of Q3).
Oct. 27, 2014, 7:09 PM
- Anadigics (NASDAQ:ANAD) expects Q4 revenue to be up 8%-12% Q/Q. That implies a range of $20.4M-$21.1M, in-line with a $20.8M consensus.
- Gross margin is expected to be up ~200 bps from a Q3 level of 16%, which itself was up 321 bps Q/Q (beating guidance). Opex is expected to be roughly flat.
- The RF chipmaker had $13.5M in cash ($9.5M in net cash) at the end of Q3.
- With shares having gone into earnings trading below $0.67, the numbers are being well-received.
- Q3 results, PR
Sep. 18, 2014, 10:44 AM| Sep. 18, 2014, 10:44 AM | Comment!
Aug. 7, 2014, 1:49 PM
- Anadigics (NASDAQ:ANAD) guided on its Q2 CC (transcript) for Q3 revenue to be down 18%-20% Q/Q; consensus is for revenue to grow to $29.1M from Q2's $23.3M. Weak sales of "legacy" mobile products are expected to more than offset growth elsewhere.
- The RF component maker is 6 weeks removed from announcing it's cutting 30% of its workforce, and will focus going forward on telecom infrastructure and select mobile opportunities. Plunging sales to Samsung have taken a toll on its top line.
- Samsung, Huawei, and distributor Richardson Electronics were 10%+ customers in Q2. Anadigics notes it has "engagements" with 3 U.S. cable equipment firms (Cisco and Arris are among the possible names), and expects to double its cable revenue by the end of 2015.
- Net cash stood at $9.7M at quarter's end, down $4.4M Q/Q. Total was was at $16.7M.
- Q2 results, PR
Jun. 27, 2014, 1:52 PM
- "While we are encouraged by management’s actions to reduce expenses, we believe investor concerns regarding cash burn/financing options and the possibility of a faster than expected decline in cellular revenue are likely to limit stock performance in the near term," writes Needham's Quinn Bolton in response to Anadigics' (ANAD -21.1%) plans to shed ~30% of its workforce and focus more on the telecom infrastructure IC market.
- With EBITDA breakeven having been pushed out from 2H14 to 1H15, Bolton expects cash burn to higher than expected. That, in turn, raises the odds (in spite of the presence of a credit facility) Anadigics will need to raise cash.
- Anadigics ended Q1 with $13.6M in cash, and no debt. 2013 free cash flow was -$48.5M.
Jun. 27, 2014, 12:47 PM
Jun. 27, 2014, 9:19 AM
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