ANADIGICS (ANAD) is expected to report its fourth quarter 2009 results later today.

Management expects revenues to grow by 5% to 8% sequentially in the fourth quarter. This implies a revenue guidance of $38.5 million – $39.6 million.

The company earlier planned a two-week shutdown at the year end of 2009, which should lower factory utilization in the fourth quarter as compared to the third quarter. This will in turn negatively impact gross margins on a sequential basis.

Net loss per share is projected between 8 cents and 10 cents.

In October, ANADIGICS reported revenues of $36.7 in the third quarter of 2009, down 36.8% year over year but up 16.7% sequentially. The revenue growth was driven by growth in 3G wireless products as well as an earlier than expected recovery in both cable TV and WLAN revenues.

Gross margin improved significantly to 24.4% from 10.7% in the previous quarter primarily due to the increased revenue, higher factory utilization, and improved yields.

ANADIGICS earlier announced a foundry agreement with WIN Semiconductors. This foundry relationship is a key component of ANADIGICS’ new hybrid manufacturing strategy, providing a mix of internal and external manufacturing capabilities. Management expects that this will expand production capabilities by the fourth quarter 2010 and ensure fulfillment of future demand and iron out supply constraints.

There are several issues that need to be addressed for ANADIGICS to become competitive, which include a) wireless customers need to be convinced that they can rely on a consistent supply of ANADIGICS products, which are superior; b) win back lost market share at its key customer – Samsung; c) iron out manufacturing inefficiencies d) diversify sources of supply and key foundry partners; e) decrease cost base at Warren, New Jersey plant.

Headquartered in Warren, New Jersey, ANADIGICS designs and manufactures semiconductor solutions for the broadband wireless and wireline communications markets.
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