<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------
FORM 10-Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED APRIL 2, 2000.
or
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____________ TO
____________.
Commission File No. 0-25662
ANADIGICS, Inc.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 22-2582106
------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
35 Technology Drive
Warren, New Jersey 07059
------------------ -----
(Address of principal executive offices) (Zip Code)
(908) 668-5000
----------------------------------------------------
(Registrant's telephone number, including area code)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the Registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes [ X ] No [ ]
The number of shares outstanding of the registrant's common stock as of April 2,
2000 was 29,758,448.
<PAGE>
INDEX
ANADIGICS, Inc.
Part. I. Financial Information
Item 1. Financial Statements (unaudited)
Condensed consolidated balance sheets - April 2, 2000 and
December 31, 1999.
Condensed consolidated statements of operations - Three months
ended April 2, 2000 and April 4, 1999.
Condensed consolidated statements of comprehensive income (loss)
- Three months ended April 2, 2000 and April 4, 1999.
Condensed consolidated statements of cash flows - Three months
ended April 2, 2000 and April 4, 1999.
Notes to condensed consolidated financial statements - April 2,
2000.
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Part II. Other Information
Item 1. Legal Proceedings
Item 6. Exhibits and Reports on Form 8-K
2
<PAGE>
PART I - FINANCIAL STATEMENTS
Item 1. Financial Statements (unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
ANADIGICS, Inc.
(Amounts in thousands, except share and per share amounts)
<TABLE>
<CAPTION>
April 2, 2000 December 31, 1999
------------- -----------------
(unaudited) (Note 1)
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 132,162 $ 149,895
Marketable securities 21,946 14,452
Accounts receivable, net 27,563 25,151
Inventory 12,417 10,334
Prepaid expenses and other current assets 7,529 2,708
Insurance settlement receivable - 5,325
Deferred taxes 4,840 4,840
----------- ------------
Total current assets 206,457 212,705
Marketable securities 13,703 7,404
Property and equipment:
Equipment and furniture 118,887 115,195
Leasehold improvements 27,665 27,553
Projects in process 10,677 8,525
Less accumulated depreciation and amortization 69,641 66,383
----------- ------------
87,588 84,890
Other assets 2,631 2,164
Deferred taxes 7,193 10,447
----------- ------------
$ 317,572 $ 317,610
============ ============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 13,822 $ 15,901
Accrued litigation settlement costs - 11,761
Accrued liabilities 5,728 6,577
Accrued restructuring costs 993 993
Current maturities of long-term debt 1,000 1,000
Current maturities of capital lease obligations 220 151
--- ---
Total current liabilities 21,763 36,383
Capital lease obligations, less current portion - 32
Other long-term liabilities 1,687 1,546
Long-term debt, less current portion 2,750 3,000
Stockholders' equity
Common stock, $0.01 par value, 68,000,000 shares
authorized, 29,758,448 and 28,853,614 issued
and outstanding at April 2, 2000 and
December 31, 1999, respectively 298 289
Additional paid-in capital 305,662 296,496
Accumulated deficit (14,470) (20,010)
Accumulated other comprehensive income (loss) (118) (126)
----------- ------------
Total stockholders' equity 291,372 276,649
----------- ------------
$ 317,572 $ 317,610
============ ============
</TABLE>
See notes to condensed consolidated financial statements.
3
<PAGE>
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
ANADIGICS, Inc.
(Amounts in thousands, except share and per share amounts)
<TABLE>
<CAPTION>
Three months ended
------------------
April 2, 2000 April 4, 1999
------------- -------------
(unaudited) (unaudited)
<S> <C> <C>
Net sales $ 43,005 $ 25,048
Cost of sales 21,833 16,900
----------- -----------
Gross profit 21,172 8,148
Research and development expenses 9,789 5,581
Selling and administrative expenses 6,137 3,859
----------- -----------
Operating income (loss) 5,246 (1,292)
Interest income, net 2,499 517
Gain on sale of equipment 1,049 -
----------- -----------
Income (loss) before income taxes 8,794 (775)
Provision (benefit) for income taxes 3,254 (287)
----------- -----------
Net income (loss) $ 5,540 $ (488)
=========== ===========
Basic earnings (loss) per share (1) $ 0.19 $ (0.02)
=========== ===========
Weighted average common
shares outstanding (1) 29,277,268 22,198,005
=========== ===========
Diluted earnings (loss) per share (1) $ 0.18 $ (0.02)
=========== ===========
Weighted average common and
dilutive securities outstanding (1) 31,629,984 22,198,005
=========== ===========
</TABLE>
(1) - Historical share and per share data have been restated to reflect a
3-for-2 stock split.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
ANADIGICS, Inc.
(Amounts in thousands)
<TABLE>
<CAPTION>
Three months ended
------------------
April 2, 2000 April 4, 1999
------------- -------------
(unaudited) (unaudited)
<S> <C> <C>
Net income (loss) $ 5,540 $ (488)
Unrealized gain (loss) on marketable securities 8 (6)
----------- -----------
Total comprehensive income (loss) $ 5,548 $ (494)
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
4
<PAGE>
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
ANADIGICS, Inc.
(Amounts in thousands)
<TABLE>
<CAPTION>
Three months ended
------------------
April 2, 2000 April 4, 1999
------------- -------------
(unaudited) (unaudited)
<S> <C> <C>
Cash flows from operating activities:
Net income (loss) $ 5,540 $ (488)
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operating activities:
Depreciation 4,953 5,765
Amortization 46 106
Deferred taxes 3,254 (168)
Gain on sale of equipment (1,049)
Payment of litigation settlement (6,436)
Changes in operating assets and liabilities:
Accounts receivable (2,412) (4,706)
Inventory (2,083) 107
Prepaid expenses and other assets (5,288) (910)
Accounts payable (2,079) (94)
Accrued liabilities and other long-term liabilities (708) 1,803
----------- -----------
Net cash (used in) provided by operating activities (6,262) 1,415
Cash flows from investing activities:
Purchase of plant and equipment (7,597) (3,923)
Purchase of marketable securities (19,431) (7,126)
Proceeds from sale of marketable securities 5,646 8,386
Proceeds from sale of equipment 1,052 -
----------- -----------
Net cash used in investing activities (20,330) (2,663)
Cash flows from financing activities:
Repayment of long-term debt (250) (250)
Payment of capital lease obligations (66) (71)
Issuances of common stock 9,175 190
----------- -----------
Net cash provided by (used in) financing activities 8,859 (131)
----------- -----------
Net decrease in cash and cash equivalents (17,733) (1,379)
Cash and cash equivalents at beginning of period 149,895 23,987
----------- -----------
Cash and cash equivalents at end of period $ 132,162 $ 22,608
=========== ===========
Supplemental disclosures of cash flow information:
Interest paid $ 79 $ 102
=========== ===========
Taxes paid $ 45 $ -
=========== ===========
Supplemental schedule of non-cash investing activity:
Acquisition of equipment under capital leases $ 103
===========
</TABLE>
See notes to condensed consolidated financial statements.
5
<PAGE>
ANADIGICS, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) - April 2, 2000
1. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying unaudited, condensed, consolidated financial
statements have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions to Form
10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered necessary for a
fair presentation have been included. For the quarter ended April 2, 2000, the
Company deferred manufacturing variances that were planned and expected to be
absorbed by the end of the year which reduced diluted earnings per share by
$0.02 per share. Operating results for the three month period ended April 2,
2000 are not necessarily indicative of the results that may be expected for the
year ending December 31, 2000.
The condensed, consolidated balance sheet at December 31, 1999 has been
derived from the audited financial statements at that date but does not include
all the information and footnotes required by generally accepted accounting
principles for complete financial statements. For further information, refer to
the consolidated financial statements and footnotes thereto included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1999.
The condensed, consolidated financial statements include the accounts
of the Company and its wholly owned subsidiaries. All significant intercompany
accounts and transactions have been eliminated in consolidation.
2. Inventories
Inventories are stated at the lower of cost (first-in, first-out method) or
market. Inventories consist of the following:
April 2, 2000 Dec. 31, 1999
------------- -------------
Raw materials $ 2,030 $ 1,995
Work in process 8,140 7,370
Finished goods 3,802 4,105
---------- ----------
13,972 13,470
Reserves 1,555 3,136
---------- ----------
$ 12,417 $ 10,334
========== ==========
3. Stockholders' Equity
On January 27, 2000, the Company declared a stock dividend of one share of
common stock for each two shares of common stock outstanding. The dividend was
payable on February 29, 2000 to holders of record on February 10, 2000.
Accordingly, the 1999 condensed, consolidated financial statements and notes
thereto have been retroactively restated to reflect the three-for-two stock
split.
6
<PAGE>
ANADIGICS, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) -
April 2, 2000 (Continued)
4. Earnings Per Share
The reconciliation of shares used to calculate basic and diluted earnings per
share consists of the following:
Three months ended
------------------
April 2, 2000 April 4, 1999
------------- -------------
Weighted average common shares
outstanding used to calculate
basic earnings per share 29,277,268 22,198,005
Net effect of dilutive stock options -
based upon the treasury stock method
using an average market
price 2,352,716 - *
---------- ----------
Weighted average common and
dilutive securities outstanding
used to calculate diluted earnings
per share 31,629,984 22,198,005
========== ==========
* - The dilutive stock options are not included as their effect is
anti-dilutive.
5. Segment Information
Revenues by Application
The Company classifies its revenues based upon the end application of
the product in which its integrated circuits are used. Net sales by end
application are regularly reviewed by the chief operating decision maker and are
as follows:
Three months ended
------------------
April 2, 2000 April 4, 1999
------------- -------------
Cellular and PCS Applications $ 23,376 $ 9,417
Cable and Broadcast Applications 15,303 9,930
Fiber Optic Applications 4,326 5,600
Engineering service sales - 101
---------- ----------
Total $ 43,005 $ 25,048
========== ==========
Geographic Information
The Company primarily sells to four geographic regions; Europe, Asia,
North America (primarily U.S.A.), and South America. The geographic region is
determined by the destination of the shipped product. Net sales to each of the
four geographic regions are as follows:
Three months ended
------------------
April 2, 2000 April 4, 1999
------------- -------------
Europe $ 9,755 $ 5,811
Asia 9,219 7,425
North America (primarily U.S.A.) 17,026 9,310
South America 7,005 2,502
---------- ----------
Total $ 43,005 $ 25,048
========== ==========
7
<PAGE>
ANADIGICS, Inc.
Notes to Condensed Consolidated Financial Statements (unaudited) -
April 2, 2000 (Continued)
6. Legal Proceedings
The court-approved settlement of the previously-disclosed consolidated
securities class action, captioned In re ANADIGICS, Inc. Securities Litigation,
No. 98-CV-917 (MLC) (D.N.J.), and shareholder's derivative lawsuit, captioned
Deegan v. Rosenzweig, No. 98-CV-3640 (MLC) (D.N.J.), became final and was funded
in January 2000. The total settlement payment (including the costs of
administering the settlement) was $11.9 million, of which approximately $5.3
million was paid on behalf of ANADIGICS, Inc. by the Company's insurers.
8
<PAGE>
ANADIGICS, Inc.
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operation
Results of Operations
The following table sets forth unaudited consolidated statements of
operations data as a percent of net sales for the periods presented:
Consolidated Statement of Operations-
Three months ended
------------------
April 2, 2000 April 4, 1999
------------- -------------
(unaudited) (unaudited)
Net sales 100.0% 100.0%
Cost of sales 50.8% 67.5%
----- -----
Gross profit 49.2% 32.5%
Research and development expenses 22.8% 22.3%
Selling and administrative expenses 14.2% 15.4%
----- -----
Operating income (loss) 12.2% (5.2%)
Interest income, net 5.8% 2.1%
Gain on sale of equipment 2.4% -
----- -----
Income (loss) before income taxes 20.4% (3.1%)
Provision (benefit) for income taxes 7.5% (1.1%)
----- -----
Net income (loss) 12.9% (2.0%)
===== =====
First Quarter 2000 (Ended April 2, 2000) Compared to First Quarter 1999
(Ended April 4, 1999)
Net Sales. Net sales during the first quarter of 2000 increased 72% to
$43.0 million from $25.0 million in the first quarter of 1999. Sales of
integrated circuits for cellular and PCS applications increased 148% during the
first quarter of 2000 to $23.4 million from $9.4 million in the first quarter of
1999. The increase in sales of integrated circuits for cellular and PCS
applications was due to an increase in demand for our multi-band, multi-mode
power amplifier integrated circuits used in wireless telephone handsets.
Sales of integrated circuits for cable and broadcast applications
increased 54% during the first quarter of 2000 to $15.3 million from $9.9
million in the first quarter of 1999. The increase in sales of integrated
circuits for cable and broadcast applications during the first quarter of 2000
was due to increased demand for integrated circuit line amplifiers, which are
used in cable television systems to distribute signals from cable headends to
subscribers, and video tuner chip sets and reverse amplifier integrated
circuits, which are used in cable television set-top boxes and cable modems to
receive and transmit signals.
Sales of integrated circuits for fiber optic telecommunications and
data communications ("fiber optic") applications decreased 23% during the first
quarter of 2000 to $4.3 million from $5.6 million in the first quarter of 1999.
The reduction in sales of integrated circuits for fiber optic applications was
primarily due to a reduction in demand and average selling prices for its
transimpedence amplifiers used in Synchronous Optical Network (SONET) medium
range and long-haul fiber optic telecommunications applications.
The Company expects increased competition in its fiber optic
transimpedence amplifier applications. Increased competition could result in
decreased prices for the Company's integrated circuits and/or reduced demand for
its products.
9
<PAGE>
Engineering service sales, which reflect customers' contributions to
research and development, were $0.1 million during the first quarter of 1999.
Generally, selling prices for same product sales were lower during the
first quarter of 2000 compared to the first quarter of 1999.
Gross Margin. Gross margin during the first quarter of 2000 increased
to 49.2% from 32.5% in the first quarter of 1999. Gross margin during the first
quarter of 1999 included $2.7 million of accelerated depreciation expense
associated with the closing of the Company's four-inch wafer fabrication
facility. The accelerated depreciation expense was due to a reduction in the
useful lives of the fabrication facility equipment and leasehold improvements
with original lives ranging from five to twenty years that were reduced to a
life of nine months beginning October 1, 1998. The reduction in estimated useful
life followed our October 1998 decision to close our four-inch wafer fabrication
facility.
Excluding the accelerated depreciation expense of $2.7 million, gross
margin during the first quarter of 1999 was 43.1%. The increase in gross margin
during the first quarter of 2000 to 49.2% from 43.1% (excluding the accelerated
depreciation expense of $2.7 million) in the first quarter of 1999, resulted
from leveraging fixed costs over higher sales levels, as well as manufacturing
efficiencies and per unit material cost reductions which resulted from the use
of six-inch wafers during the first quarter of 2000, compared to four-inch
wafers used during the first quarter of 1999.
Research and Development. Company sponsored research and development
expense increased 75% during the first quarter of 2000 to $9.8 million from $5.6
million during the first quarter of 1999. The increase was primarily
attributable to: (1) increased research and development of integrated circuits
for cellular and PCS, CATV, and fiber optic applications, and (2) increased
research and development of new process technologies, particularly Indium
Gallium Phosphide Heterojunction Bi-polar Transistor (InGaP HBT) process
technology for integrated circuits used in cellular and PCS, and fiber optic
applications. As a percentage of sales, research and development expense
increased to 22.8% in the first quarter of 2000 from 22.3% in the first quarter
of 1999.
Selling and Administrative. Selling and administrative expenses
increased 59% during the first quarter of 2000 to $6.1 million from $3.9 million
in the first quarter of 1999. The increase in selling and administrative
expenses during the first quarter of 2000 was primarily due to increased
staffing, payroll taxes associated with employee stock options exercised, and
increased sales commission expense. As a percentage of sales, selling and
administrative expenses decreased to 14.2% in the first quarter of 2000 from
15.4% in the first quarter of 1999.
Gain on Sale of Equipment. During the first quarter of 2000, the
Company sold equipment, which resulted in a gain on the sale of approximately
$1.0 million. Substantially all of the equipment was fully depreciated prior to
its sale.
Interest Income, net. Interest income, net increased $2.0 million to
$2.5 million during the first quarter of 2000 from $0.5 million during the first
quarter of 1999 on substantially higher invested cash balances following our
secondary offering of common stock completed in November 1999.
Provision for Income Taxes. The provision for income taxes during the
first quarter of 2000 was recorded at an estimated effective annual rate of 37%
of the income before income taxes.
10
<PAGE>
Liquidity and Capital Resources
As of April 2, 2000, we had $132.2 million in cash and cash equivalents
and $35.6 million in marketable securities. We had $3.8 million of bank debt
outstanding as of the end of the first quarter of 2000. We entered into an
interest rate swap agreement in 1998, which effectively fixes the interest rate
on this portion of the credit facility at 7.09%. The swap effectively changed
the variable interest rate of this bank debt to a fixed rate for which the
present value of the cash flows are approximately the same. As of April 2, 2000,
we also had $15.0 million available under a credit facility. The credit facility
drawdown period expires on July 1, 2001. The outstanding bank debt and credit
facility are subject to certain financial covenants. Substantially all of our
assets are pledged as security for repayments of the outstanding bank debt and
borrowings, if any, under the credit facility.
Operations used $6.3 million in cash during the first quarter of 2000,
which included a payment of $6.4 million during the period to settle a
shareholder lawsuit. Investing activities, which primarily consisted of net
purchases of marketable securities of $13.8 million and purchases of equipment
of $7.6 million, used $20.3 million of cash during the first quarter of 2000.
Financing activities raised $8.9 million during the first quarter of 2000. Cash
provided by financing activities primarily consisted of proceeds received from
employee stock options exercised, which raised $9.2 million during the quarter.
As previously planned and disclosed, we ceased our wafer fabrication
operations in our four-inch wafer fabrication facility during the third quarter
of 1999. Fabrication facility dismantling and restoration activities began late
in the fourth quarter of 1999 and are expected to continue through the second
quarter of 2000. We plan to restore these areas as office space by the end of
the third quarter of 2000.
In December 1999, we entered into an agreement to expand our six-inch
wafer fabrication facility. The expansion, which is expected to cost
approximately $10.0 million, will approximately double our current production
capacity and is expected to be completed by the end of the second quarter of
2000.
In addition to the above wafer fabrication facility expansion
investment of $10.0 million, as of April 2, 2000, we also committed to purchase
approximately $12.0 million of equipment and furniture, and leasehold
improvements during the first half of 2000.
We believe that our sources of capital, including internally generated
funds and $15.0 million available under our existing credit facility, will be
adequate to satisfy anticipated capital needs for the next twelve months and
beyond. Our anticipated capital needs may include acquisitions of complimentary
businesses or technologies, or investments in other companies. However, we may
elect to finance all or part of our future capital requirements through
additional equity or debt financing. There can be no assurance that such
additional financing would be available on satisfactory terms.
Impact of Year 2000
The Year 2000 issue is the result of computer programs being written
using two digits rather than four to define the applicable year. Any of our
computer programs or hardware that have date-sensitive software or embedded
chips may recognize a date using "00" as the year 1900 rather than the year
2000. This could result in a system failure or miscalculations causing
disruptions of operations, including, among other things, a temporary inability
to process transactions, send invoices, or engage in similar normal business
activities.
To address the Year 2000 issue, we formed a senior team of internal
staff and outside consultants to ensure that the Year 2000 issue did not have an
adverse effect on our core business operations. To accomplish this, we invested
approximately $1.0 million in new computer hardware and software and $0.5
million in assessment, development and remediation efforts in 1998 and 1999 to
ensure that our information technology systems, non-information technology
systems, and manufacturing equipment were Year 2000 compliant.
11
<PAGE>
We have completed our remediation and testing procedures and to date,
we have not experienced any disruptions in our business due to Year 2000
compliance problems. However, it is possible that certain of our systems, or
systems of our customers or vendors may fail to operate in the Year 2000. To the
extent we experience Year 2000 related issues in the future, our business and
results of operations may be materially adversely effected.
Impact Of Recently Issued Accounting Standards
In June 1998, the FASB issued Statement No. 133, Accounting for
Derivative Instruments and Hedging Activities, which is required to be adopted
in years beginning after June 15, 2000. The Statement permits early adoption as
of the beginning of any fiscal quarter after its issuance. We expect to adopt
the new Statement effective January 1, 2001. The Statement will require us to
recognize all derivatives on the balance sheet at fair value. Derivatives that
are not hedges must be adjusted to fair value through income. If a derivative is
a hedge, depending on the nature of the hedge, changes in the fair value of the
derivative will either be offset against the change in fair value of the hedged
asset, liability, or firm commitment through earnings, or recognized in other
comprehensive income until the hedged item is recognized in earnings. The
ineffective portion of a derivative's change in fair value will be immediately
recognized in earnings. We do not anticipate that the adoption of this Statement
will have a significant effect on our results of operations or financial
position.
Risks and Uncertainties
Except for historical information contained herein, this Management's
Discussion and Analysis of Financial Condition and Results of Operation contains
forward-looking statements that involve risks and uncertainties, including, but
not limited to, order rescheduling or cancellation, changes in customer's
forecasts of product demand, timely product and process development, individual
product pricing pressure, variation in production yield, changes in estimated
product lives, difficulties in obtaining components and assembly services needed
for production of integrated circuits, change in economic conditions of the
various markets the Company serves, as well as the other risks detailed from
time to time in the Company's reports filed with the Securities and Exchange
Commission, including the report on Form 10-K for the year ended December 31,
1999 and the Registration Statement on Form S-3 (Registration No. 333-83889).
These forward-looking statements can generally be identified as such because the
context of the statement will include words such as the Company "believes",
"anticipates", "expects", or words of similar import. Similarly, statements that
describe the Company's future plans, objectives, estimates or goals are
forward-looking statements. The cautionary statements made in this Form 10-Q
should be read as being applicable to all related forward-looking statements
wherever they appear in this Form 10-Q. Important factors that could cause
actual results and developments to be materially different from those expressed
or implied by such statements include those factors discussed herein.
Item 3. Quantitative And Qualitative Disclosures About Market Risk
We are exposed to changes in interest rates primarily from our credit
facility and our investments in certain available-for-sale securities. To date,
we have managed our exposure to changes in interest rates from our credit
facility by entering into interest rate swap agreements which allow us to
convert our debt from variable to fixed interest rates. We plan to continue to
reduce our exposure to changes in interest rates from our credit facility by
using interest rate derivative instruments. Our available-for-sale securities
consist of fixed income investments (U.S. Treasury and Agency securities and
short-term commercial paper). We continually monitor our exposure to changes in
interest rates from our available-for-sale securities. Accordingly, we believe
that the effects of changes in interest rates are limited and would not have a
material impact on our financial condition or results of operations. However, it
is possible that we are at risk if interest rates change in an unfavorable
direction. The magnitude of any gain or loss will be a function of the
difference between the fixed rate of the financial instrument and the market
rate and our financial condition and results of operations could be materially
affected.
12
<PAGE>
ANADIGICS, Inc.
PART II.
OTHER INFORMATION
Item 1. Legal Proceedings
Shareholder Litigation
The court-approved settlement of the previously-disclosed consolidated
securities class action, captioned In re ANADIGICS, Inc. Securities Litigation,
No. 98-CV-917 (MLC) (D.N.J.), and shareholder's derivative lawsuit, captioned
Deegan v. Rosenzweig, No. 98-CV-3640 (MLC) (D.N.J.), became final and was funded
in January 2000. The total settlement payment (including the costs of
administering the settlement) was $11.9 million, of which approximately $5.3
million was paid on behalf of ANADIGICS, Inc. by the Company's insurers.
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibits are included herein:
Exhibit 27. - Financial Data Schedule
(b) Reports on Form 8-K relating to the quarter ended April 2, 2000.
The Company did not file any reports on Form 8-K during the quarter
ended April 2, 2000.
13
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ANADIGICS, INC.
By: /s/ Thomas C. Shields
----------------------
Thomas C. Shields
Senior Vice President
and Chief Financial Officer
Dated: May 10, 2000
14
<PAGE>
ANADIGICS, Inc.
EXHIBIT INDEX
Page
----
Exhibit 27. Financial Data Schedule ........................ 16
15
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted for the three
months ended April 2, 2000 and is qualified in its entirety by reference to such
financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-END> APR-02-2000
<CASH> 132,162,000
<SECURITIES> 21,946,000
<RECEIVABLES> 27,563,000
<ALLOWANCES> 0
<INVENTORY> 12,417,000
<CURRENT-ASSETS> 206,457,000
<PP&E> 157,229,000
<DEPRECIATION> 69,641,000
<TOTAL-ASSETS> 317,572,000
<CURRENT-LIABILITIES> 21,763,000
<BONDS> 0
0
0
<COMMON> 298,000
<OTHER-SE> 291,074,000
<TOTAL-LIABILITY-AND-EQUITY> 317,572,000
<SALES> 43,005,000
<TOTAL-REVENUES> 43,005,000
<CGS> 21,633,000
<TOTAL-COSTS> 21,633,000
<OTHER-EXPENSES> 15,926,000
<LOSS-PROVISION> (1,049,000)
<INTEREST-EXPENSE> (2,499,000)
<INCOME-PRETAX> 8,794,000
<INCOME-TAX> 3,254,000
<INCOME-CONTINUING> 5,540,000
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,540,000
<EPS-BASIC> 0.19
<EPS-DILUTED> 0.18
</TABLE>
