WARREN, N.J. -- The wireless-communications market, which is consuming gallium arsenide (GaAs) chips as fast as they can be produced, propelled Anadigics Inc. here to record sales of $43.0 million for the first quarter ended April 2, a 72% increase over the $25.0 million reported in the first quarter of 1999.
Net income was $5.7 million, or 18 cents per diluted share, compared with net income of $1.2 million, or 5 cents per share, in the year-ago quarter. Quarterly earnings reflect the company's 3-for-2 stock split, which took effect on Feb. 29.
Sales increased in wireless, cable, and fiber optic segments. Wireless took the biggest leap of 148% over the 1999 first quarter, to $23.4 million. Wireless-chip sales were up 3% sequentially from the seasonally strong fourth quarter, Anadigics said.
Cable products of $15.3 million rose 54% over the year-ago quarter and 12% sequentially on growth ICs for cable set-top box and cable modems. Fiber-product sales of $4.3 million were up 14% sequentially on rising shipments of higher data-rate products for data communications.
"The communications IC market is as healthy as ever," said Bami Bastani, Anadigics' president and CEO. The company's book-to-bill is well over 1.0, he said.
Net income for the first quarter excludes costs of $1.3 million associated with employee stock options that were exercised, and a gain of $1.0 million on the sale of 4-inch fab equipment. Including these items, net income was $5.5 million, also 18 cents per share.
A year ago, Anadigics took a special charge for accelerated depreciation of $2.7 million associated with the closing of the 4-inch wafer fab. Including the special charge, the company's net loss in the first quarter of 1999 was $500,000, or 2 cents per share.