Quarterly Net Sales of $31.5 Million; Non-GAAP Net Loss Was ($0.18)

WARREN, NJ -- (Marketwire) -- 07/28/09 -- ANADIGICS, Inc. (NASDAQ: ANAD), a leading provider of semiconductor solutions in the broadband wireless and wireline communications markets, reported second quarter 2009 net sales of $31.5 million, an increase of 3% sequentially and a decrease of 61% from the second quarter of 2008. As of July 4, 2009, cash, cash equivalents and short and long-term marketable securities totaled $128.4 million.

GAAP net loss for the second quarter of 2009 was $14.3 million, or ($0.23) per share. Non-GAAP net loss for the second quarter of 2009 was $11.3 million, or ($0.18) per share. Non-GAAP financial measures exclude charges of $3.0 million, or ($0.05) per share, associated with stock-based compensation. The details of the Non-GAAP adjustments are available in the accompanied financial schedules.

"This has been an important quarter for ANADIGICS. We have implemented many changes within the company focused on operational excellence and the results demonstrate that we are on the right track. We achieved sequential revenue growth coupled with better than expected gross margins," remarked Mario Rivas, President and Chief Executive Officer of ANADIGICS. "We are pleased to see strong revenue growth in wireless products driven by our tier 1 handset customers and we see significant opportunities not only with our current product offering but with new product solutions currently under development. Our differentiated products remain the key factor in driving a high level of customer engagement in design activity positioning the company for a stronger second half of the year."

Outlook for the Third Quarter 2009

Net sales for the third quarter of 2009 are estimated to increase sequentially over the second quarter of 2009 by approximately 5% to 10%. Net loss per share on a GAAP basis for the third quarter is expected to be approximately ($0.20) to ($0.21). Non-GAAP loss per share, excluding non-cash stock compensation expense, is expected to be approximately ($0.15) to ($0.16).

The statements regarding the Company's anticipated future performance are forward looking and actual results may differ materially. Please see safe harbor statement at the end of this press release.

This press release includes financial measures that are not in accordance with GAAP, consisting of non-GAAP net income or loss and non-GAAP income or loss per share. Management uses non-GAAP net income or loss and non-GAAP income or loss per share to evaluate the company's operating and financial performance in light of business objectives, for planning purposes, when publicly providing our business outlook and to facilitate period-to-period comparisons. ANADIGICS believes that these measures are useful to investors because they enhance investors' ability to review the company's business from the same perspective as the company's management and facilitate comparisons of this period's results with prior periods. These non-GAAP measures exclude charges related to stock-based compensation, restructuring charges, impairment of auction rate securities and non-comparative charges in the first quarter of 2009 resulting from inventory reserves associated with reduced demand. Non-GAAP measures are used by some investors when assessing the ongoing operating and financial performance of our Company. These financial measures are not in accordance with GAAP and may differ from non-GAAP methods of accounting and reporting used by other companies. Management acknowledges that stock-based compensation is a recurring cost and is an important part of our employee's compensation and impacts their performance. However the expense is non-cash in nature and there are various valuation methodologies and assumptions used in determining stock-based compensation that may be unrelated to operations, such as volatility and current interest rates. The presentation of the additional information should not be considered a substitute for net income or loss or income or loss per share prepared in accordance with GAAP.

Limitations of non-GAAP financial measures. The primary material limitations associated with the use of non-GAAP measures as compared to the most directly comparable GAAP financial measures are (i) they may not be comparable to similarly titled measures used by other companies in ANADIGICS industry, and (ii) they exclude financial information that some may consider important in evaluating our performance.