ANADIGICS Announces Second Quarter 2007 Results

ANADIGICS Announces Second Quarter 2007 Results

July 25, 2007

Achieves Record Quarterly Net Sales of $53.9 million; up
8.7% sequentially and 37% From Year Ago Quarter
Delivers GAAP EPS of $0.03; Pro Forma Diluted EPS of $0.10
Expects Sequential Third Quarter Net Sales Growth of 10%;
GAAP Diluted EPS of $0.06 and Pro Forma Diluted EPS of
$0.12

    WARREN, N.J., July 25 /Xinhua-PRNewswire/ -- 

    ANADIGICS, Inc. (Nasdaq: ANAD), a leading provider of
semiconductor solutions in the rapidly growing broadband
wireless and wireline communications markets, reported
record quarterly second quarter 2007 net sales of $53.9
million, an increase of 8.7% compared with net sales of
$49.6 million in the prior quarter, and an increase of 37%
compared to net sales of $39.3 million in the year ago
quarter.     

    Net income was $1.9 million, or $0.03 per share,
compared with net loss of $1.2 million, or $0.02 per share
in the prior quarter and net loss of $2.8 million, or $0.06
per share in the year ago quarter.  Pro forma income for the
second quarter 2007, which excludes non-cash stock
compensation expense, increased $2.0 million sequentially
to $5.7 million or $0.10 per diluted share.

    "We achieved significant milestones in the second
quarter with record revenue, led by our 3G portfolio with
revenue growth of 38% sequentially and 83% year-over-year,
and GAAP net income," said Dr. Bami Bastani, President
and Chief Executive Officer of ANADIGICS.  "ANADIGICS
is well positioned strategically in the three-mega trend
growth markets of 3G, WLAN and CATV to capitalize on our
strong market position to fuel our revenue growth and
financial performance." 

    As of June 30, 2007 cash and short and long-term
marketable securities totaled $181.1 million compared with
$179.2 million at March 31, 2007.   

    "Our resolve to accelerate our financial
performance through a strategically aligned product
portfolio and a balanced operating base is a testament of
our commitment to building shareholder value," said
Tom Shields, Executive Vice President and Chief Financial
Officer.  "Our financial leverage continues to
improve, which is expected to further strengthen our
financial results over the foreseeable future."  

    Outlook for the Third Quarter 2007

    Net sales for the third quarter 2007 are expected to
increase sequentially by approximately 10%.  Net sales at
this level would represent a 35% increase on a comparable
basis with third quarter 2006.  Net income per share on a
GAAP basis for the third quarter 2007 is expected to
approximate $0.06.  Pro forma diluted earnings per share,
excluding non-cash stock compensation expense, are expected
to increase sequentially to approximately $0.12.  The net
income and pro forma diluted earnings per share is based
upon an estimated diluted weighted average outstanding
common share count of 61.0 million.

    The statements regarding outlook are forward looking
and actual results may differ materially.  Please see safe
harbor statement at the end of the press release.

    This press release includes financial measures that are
not in accordance with GAAP, consisting of non-GAAP, or pro
forma, net income or loss and non-GAAP, or pro forma,
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 and for planning purposes. 
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 equity-based
compensation and discontinued operations.  These financial
measures are not in accordance with GAAP and may differ
from non-GAAP methods of accounting and reporting used by
other companies.  The presentation of this additional
information should not be considered a substitute for net
loss or loss per share prepared in accordance with GAAP. 
Reconciliations of reported net loss and reported loss per
share to non-GAAP net income or loss and non-GAAP income or
loss per share, respectively, are included at the end of
this press release.

    Conference Call 

    ANADIGICS' senior management will conduct a conference
call today at 5:00 PM Eastern time.  A live audio Webcast
will be available at http://www.anadigics.com.  A recording
of the call will be available approximately two hours after
the end of the call on the ANADIGICS Web site or by dialing
[phone] (available until July 31).

    Recent Highlights

    -- July 09, 2007 - ANADIGICS and Kunshan New and
Hi-Tech Industrial 
       Development Zone Break Ground for GaAs Wafer
Fabrication Facility in 
       China 

    -- June 27, 2007 - ANADIGICS' 3G Penta-band Power
Amplifier Slides Into 
       Samsung's Sleek Smartphone  Ultra-Thin, Stylish
Slider Handset SGH-I520 

    -- June 13, 2007 - Beceem Selects ANADIGICS Amplifiers
for Mobile WiMAX 
       ANADIGICS PAs Power Beceem's BCS200 Wave 2 Reference
Designs 

    -- June 13, 2007 - ANADIGICS' New ZeroIC(TM) CDMA Power
Amplifiers       
       Compatible with QUALCOMM CDMA2000(TM) and 1xEVDO(TM)
Reference Designs

    -- June 12, 2007 - ANADIGICS Ships WCDMA PAs for
Huawei's Music Optimized 
       3G Handset ANADIGICS' AWT6279 PA Selected for
Stylish, Feature-Rich 
       U120 Mobile Phone 

    -- June 05, 2007 - ANADIGICS Powers Emerging Markets
CDMA450 3G Cell 
       Phones with Small and Efficient Linear PA

    -- May 22, 2007 - ANADIGICS Lights Up Samsung's Thin
Neon 3G Handset 

    -- May 21, 2007 - ANADIGICS Introduces New Integrated
1GHz RF Amplifier to 
       Enhance Tuner Performance in Cable Boxes and TVs 

    -- May 21, 2007 - ANADIGICS Announces the Appointment
of David Fellows to 
       the Company's Board of Directors

    -- May 16, 2007 - ANADIGICS' Power Amplifier Enables
Samsung's Ultra-Slim 
       3G EVDO Handset 

    -- May 15, 2007 - ANADIGICS' PA Equips Samsung's Ultra
MPEG4 Video 3G 
       Phone 

    -- May 14, 2007 - New ANADIGICS Linear EDGE Power Amp
Module Supports 
       Longer Broadband Data Transmit Times in 2.75G and 3G
Phones, PDAs, and 
       Wireless PC Cards

    -- May 10, 2007 - ANADIGICS Introduces First Complete
RF Front-End Chip 
       Set for DOCSIS(R) 3.0 Cable Modems

    -- May 09, 2007 - ANADIGICS Supplies 3G Power
Amplifiers for LG 
       Electronics' VX9400 TV Capable Phone 

    -- May 07, 2007 - ANADIGICS Powers LG Electronics
Stylish Shine 3G Mobile 
       Phone

    About ANADIGICS, Inc.

    ANADIGICS, Inc. (Nasdaq: ANAD - News) is a leading
provider of semiconductor solutions in the rapidly growing
broadband wireless and wireline communications markets. The
Company's products include power amplifiers, tuner
integrated circuits, active splitters, line amplifiers, and
other components, which can be sold individually or packaged
as integrated radio frequency and front end modules.

    Safe Harbor Statement

    Except for historical information contained herein,
this press release contains projections and other
forward-looking statements (as that term is defined in the
Securities Exchange Act of 1934, as amended). These
projections and forward-looking statements reflect the
Company's current views with respect to future events and
financial performance and can generally be identified as
such because the context of the statement will include
words such as "believe", "anticipate",
"expect", or words of similar import. Similarly,
statements that describe our future plans, objectives,
estimates or goals are forward-looking statements. No
assurances can be given, however, that these events will
occur or that these projections will be achieved and actual
results and developments could differ materially from those
projected as a result of certain factors. Important factors
that could cause actual results and developments to be
materially different from those expressed or implied by
such projections and forward-looking statements include
those factors detailed from time to time in our reports
filed with the Securities and Exchange Commission,
including the Company's Annual Report on Form 10-K for the
year ended December 31, 2006, and those discussed elsewhere
herein.

     Press Contact             Corporate Contact       
Investor Relations
     Chuck Manners             Jennifer Palella        
Thomas Shields
     Godfrey                   ANADIGICS, Inc.         
ANADIGICS, Inc.
     40 N. Christian Street    141 Mt. Bethel Road      141
Mt. Bethel Road
     Lancaster, PA 17602       Warren, NJ  07059       
Warren, NJ  07059
     Tel: [phone]      Tel: [phone]    
Tel: [phone]
     Fax: [phone]      Fax: [phone]        

     [e-mail]         [e-mail]  
[e-mail]



    ANADIGICS, INC.
    Consolidated Statements of Operations
    (Amounts in thousands, except per share amounts,
unaudited)

                                      Three months ended  
Six months ended
                                       June 30,  July 1,  
June 30,  July 1, 
                                         2007     2006     
2007     2006
    
    Net sales                          $53,869  $39,348 
$103,442  $74,043
    Cost of sales                       34,963   28,237   
68,250   53,526
    Gross profit                        18,906   11,111   
35,192   20,517
    Research and development expenses   11,080    8,358   
20,818   16,364
    Selling and administrative        
     expenses                            7,482    5,678   
14,841   10,942
    Operating income (loss)                344   (2,925)   
 (467)  (6,789)
    Interest income                      2,198    1,567    
3,438    2,430
    Interest expense                      (655)  (1,287)  
(1,280)  (2,575)
    Other income                           -         21    
  -         21
    Income (loss) from continuing     
     operations                          1,887   (2,624)   
1,691   (6,913)
    Loss from discontinued operations 
     (1)                                   -       (163)   
 (965)    (511)
    Net income (loss)                   $1,887  $(2,787)   
 $726  $(7,424)
  
    Basic earnings (loss) per share
    Income (loss) from continuing     
     operations                          $0.03   $(0.06)   
$0.03   $(0.17)
    Loss from discontinued operations 
     (1)                                  $-       $-     
$(0.02)  $(0.01)
    Net income (loss)                    $0.03   $(0.06)   
$0.01   $(0.18)
 
    Diluted earnings (loss) per share
    Income (loss) from continuing     
     operations                          $0.03   $(0.06)   
$0.03   $(0.17)
    Loss from discontinued operations 
     (1)                                  $-       $-     
$(0.02)  $(0.01)
    Net income (loss)                    $0.03   $(0.06)   
$0.01   $(0.18)
 
    Basic shares outstanding            56,523   47,198   
52,419   42,184
    Diluted shares outstanding          59,604   47,198   
55,774   42,184
 
    
    Unaudited Reconciliation of GAAP to Pro Forma Non-GAAP
Financial Measures
 
    GAAP net income (loss)              $1,887  $(2,787)   
 $726  $(7,424)
    Stock compensation expense in     
     continuing operations
       Cost of sales                       851      375    
1,751      674
       Research and development          1,392      697    
2,892    1,265
       Selling, general and         
        administrative                   1,597      660    
3,073    1,205
    Loss from discontinued operations      -        163    
  965      511
    Pro forma net income (loss)         $5,727    $(892)  
$9,407  $(3,769)
 
    Pro forma earnings (loss) per     
     share  *
    Basic                                $0.10   $(0.02)   
$0.18   $(0.09)
    Diluted                              $0.10   $(0.02)   
$0.17   $(0.09)
 
    (*) Calculated using related GAAP shares outstanding.
 
    (1) The loss from discontinued operations reflects the
divestiture of Telcom Devices, Inc., effective April 2,
2007.



    ANADIGICS, INC.
    Condensed Consolidated Balance Sheets
    (Amounts in thousands)
 
                                        June 30, 2007  
December 31, 2006
    Assets                               (Unaudited)
 
    Current assets:
      Cash and cash equivalents              $43,575       
   $13,706
      Marketable securities                  128,755       
    60,892
      Accounts receivable                     33,561       
    26,707
      Inventory                               18,967       
    19,701
      Prepaid expenses and other   
       current assets                          5,683       
     2,632
      Assets of discontinued       
       operations (1)                             21       
     1,429
    Total current assets                     230,562       
   125,067

    Marketable securities                      8,811       
     8,884
    Plant and equipment, net                  53,801       
    41,259
    Goodwill and other intangibles, 
     net of amortization                       5,918       
     5,929
    Other assets                               1,231       
     1,463
                                            $300,323       
  $182,602

    Liabilities and stockholders'   
     equity

    Current liabilities:
      Accounts payable                       $22,794       
   $17,879
      Accrued liabilities                      6,526       
     5,588
      Capital lease obligations                  -         
       312
      Liabilities of discontinued  
       operations (1)                            152       
       252
    Total current liabilities                 29,472       
    24,031

    Other long-term liabilities                3,298       
     3,348
    Long-term debt                            38,000       
    38,000
    Long-term capital lease         
     obligations                                 -         
     1,463

    Stockholders' equity                     229,553       
   115,760
                                            $300,323       
  $182,602

    (1) The Company disposed of the assets of its
subsidiary, Telcom Devices, Inc. on April 2, 2007.  

    *The condensed balance sheet at December 31, 2006 has
been derived from the audited financial statements at such
date but does not include all the information and footnotes
required by U.S. generally accepted accounting principles
for complete financial statements.


    For more information, please contact:  

     Chuck Manners of Godfrey
     Tel:   [phone]
     Fax:   [phone]
     Email: [e-mail]

     Jennifer Palella
     ANADIGICS, Inc.
     Tel:   [phone]
     Fax:   [phone]
     Email: [e-mail]

     Thomas Shields
     ANADIGICS, Inc.
     Tel:   [phone]
     Email: [e-mail]
     Web:   http://www.anadigics.com