Warren, N.J. -based Anadigics Inc. today announced that it will exit the Digital Broadcast Satellite components market, due to a $1 million drop sales of DBS products. The company plans an "orderly phase-out" of DBS TV low noise block converters and will take $8 million in special charges against its third quarter.
Approximately $2.7 million of the charges relate to the write-off of DBS inventory and production assets; approximately $4.5 million relate primarily to wireless inventory; and approximately $0.8 million relate to the retirement of certain other assets, the company said.
As a result, Anadigics anticipates third-quarter net sales and earnings below second-quarter levels. Based on the current business climate, the company also expects fourth quarter sales to be flat.
The company also announced that its year-long search for a new CEO has been completed with the naming of Dr. Bami Bastani as its new chief executive, effective Oct. 2.
Bastani, who until Wednesday headed up Fujitsu Microelectronics Inc.'s System LSI group, will succeed company co-founder Ronald Rosenzweig, who moves to the full-time position of chairman. Bastani will also take a seat on the board of directors.
Anadigics is a supplier of gallium-arsenide ICs used to transmit radio frequency and microwave signals in wireless and broadband communications systems.