WARREN, N.J.--Anadigics Inc. today said it now expects revenues in the fourth quarter to be on the high end of its previous estimate, or about $20.5 million, because of increased demand for CDMA and TDMA wireless products. Anadigics' new estimate places its Q4 sales 20.5% higher than $16.3 million in the third quarter.
The Warren-based company said it anticipates posting revenues of $13.5 million for wireless products, which is on the high side of its previous guidance, and sales of about $7.0 million for broadband products. The broadband revenues for products serving cable and fiber networks are on track with previous estimate, said the company.
"In the fourth quarter, we expect to have record sequential growth in our wireless business," said Bami Bastani, president and CEO of Anadigics. He said the company is gaining market share in code-division multiple access CDMA markets with amplifier products based on indium gallium phosphide (InGaP) heterojunction bipolar transistors (HBTs). The chief executive officer said Anadigics' traditional time-division multiple access (TDMA) products remain strong.
Anadigics said it was on track with its initiatives to reduce manufacturing costs and operating expenses 30% by the 2002 first quarter. As part of those plans, the company has begun to partially outsource its test operations, which over time is expected to improve gross margin by lowering test cost per unit. Anadigics also has announced it could end up selling its fiber optics product business (see Nov. 16 story).
The company said it anticipates a loss of $0.44 per share in the fourth quarter, excluding special charges. Anadigics is expecting to take special charges of $0.03-to-$0.05 per share in charges related to its cost-cutting initiatives.