WARREN, N.J.--Anadigics Inc. today announced additional measures to restore profitability at the company, including plans to partially outsource chip-testing operations and an effort to find "strategic alternatives" for its fiber optics product line.
One option being explored is to sell off the fiber optics products business, which is expected to generate about 5% of Anadigics' $21-to-22 million in revenues during the fourth quarter.
The Warren-based company also increased its estimates for wireless IC sales in the fourth quarter to a range of $13-to-$13.5 million from a previous forecast of $11-to-$11.5 million. The Warren-based company also said its broadband chip sales remain on track with its guidance at $7-to-$7.5 million in the final three months of 2001.
The revised outlook shows Anadigics expecting an 18.5-to-22.4% sequential increase in Q4 revenues compared to $16.3 million in the third quarter, when the company suffered a $22.4 million net loss, including one-time charges (see Oct. 22 story).
Anadigics believes its radio-frequency ICs are gaining market share in Code Division Multiple Access (CDMA) handset designs, said Bami Bastani, president and chief executive officer of the company. "Additionally, we remain focused on improving our gross margin and reaching profitability, while maintaining a strong balance sheet," he added.
The New Jersey company said it was on track with initiatives to reduce manufacturing and operating expenses by 30% in the first quarter of 2002. Anadigics is scheduled to host a regularly scheduled mid-quarter update conference call on Dec. 10.