Amid soft business conditions in the communications markets, Anadigics Inc. today reported a net loss of $4.6 million for the first quarter ended March 31, compared to net income of $5.5 million in the same quarter last year.
The Warren, N.J.-based company reported revenue of $28.5 million for the first quarter, a decline of 33.7% from the $43 million reported in the first quarter of 2000. Analysts expected the company to report revenue of $29.03 million, according to Market Guide.
Sequentially, net sales were down 7% from the fourth quarter, in line with expectations. The company reported a loss per share of 15 cents in the first quarter, compared with diluted earnings per share of 18 cents reported in the prior year.
The net loss reported in the first quarter included a pretax inventory charge of $3.5 million, predominantly in datacom fiber products. Excluding the inventory charge, the net loss was $2.3 million, or 8 cents per share. Gross margin in the first quarter was 25.6%; excluding the inventory charge, gross margin was 37.9%.
"Business conditions have remained soft throughout the communications markets, particularly within broadband," said Bami Bastani, president and chief executive of Anadigics, in a statement. "However, we believe the company's outlook remains positive as we continue to invest in new products."
In the quarter, broadband revenue was $22.2 million. Cable applications represented $19.1 million and fiber communications accounted for $3.1 million. This represented a 13% increase from the year-ago quarter and a 7% decline from the fourth quarter. Wireless revenue was $6.3 million, down 73% from the year-ago quarter and 9% from the prior quarter.
The current outlook for the second quarter of 2001 calls for revenue of $18.5 million and and EPS loss of 24 cents before acquisition-related charges. Previously, the company was expected to report revenue of $21.15 million in the second quarter. The lower revenue from previous estimates reflects the current market conditions, the company said.