"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.