WARREN, N.J.-- Radio-frequency chip supplier Anadigics Inc. here today reported a 24% drop in sales to $30.7 million in the fourth quarter compared to $40.1 million in the same period a year ago. Anadigics' sales plunged 40% sequentially form $51.1 million in the third quarter of 2000.
The drop in sales resulted in a net loss of $300,000 compared to a net income of $4.4 million.
"Our fourth quarter performance was affected by overall communications market conditions and inventory corrections at certain customers," said Bami Bastani, president and CEO of Anadigics. "We continue to focus on introduction of new products and diversification of our customer base and the results of our efforts are expected to materialize in first half 2001."
The company said its balance sheet remains strong with a cash position of $166 million at the end of 2000. The drop in chip orders and inventory correction in wireless systems markets caused Anadigics to warn investors of lower-than-expected results for the fourth quarter last month (see Dec. 11 story).
For the entire year, Anadigics posted net sales of $172.3 million, an increase of 31% from $131.2 million in 1999. Its net income for the year was $18.9 million vs. $2.6 million in 1999.