ANADIGICS Announces Third Quarter 2007 Results

ANADIGICS Announces Third Quarter 2007 Results

October 24, 2007

Achieves Record Quarterly Net Sales of $59.5 million; up
10.5% sequentially and 35.5% From Year Ago Quarter

Delivers GAAP EPS of $0.04; Pro Forma Diluted EPS of $0.11

Company Accelerates Capacity Ramp to Meet Unprecedented
Customer Demand

    WARREN, N.J., Oct. 23 /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
third quarter 2007 net sales of $59.5 million, an increase
of 10.5% compared with net sales of $53.9 million in the
prior quarter, and an increase of 35.5% compared to net
sales of $43.9 million in the year ago quarter.  
   
    Net income was $2.4 million or $0.04 per share,
compared with net income of $1.9 million, or $0.03 per
share in the prior quarter and net loss of $1.3 million, or
$0.03 per share in the year ago quarter.  Pro forma income
for the third quarter 2007, which excludes non-cash stock
compensation expense and certain costs associated with the
RF Group purchased from Fairchild Semiconductor on
September 5, 2007, was $6.5 million or $0.11 per diluted
share compared with $5.7 million or $0.10 per diluted share
in the prior quarter and $1.1 million or $0.02 per diluted
share in the year ago quarter.  The one penny shortfall in
our pro forma income from our prior guidance for the third
quarter stems primarily from manufacturing inefficiencies
associated with the rapid build up of production capacity
to accommodate the unprecedented demand resulting from our
increased market share with several top tier customers.

    For the nine months ended September 29, 2007, net sales
were $163.0 million, an increase of 38.1% compared with net
sales of $118.0 million in the prior year ended September
30, 2006.   Net income was $3.1 million or $0.05 per
diluted share, compared with a net loss of $8.7 million or
$0.20 per share.  Pro forma income for the nine months
2007, which excludes non-cash stock compensation expense,
discontinued operations and certain costs associated with
the RF Group purchased from Fairchild Semiconductor on
September 5, 2007, was $15.9 million or $0.28 per diluted
share, compared with a pro forma loss of $2.7 million or
$0.06 loss per share in the prior year.

    "ANADIGICS has significantly increased its market
share with several top tier customers resulting in an
unprecedented demand for its 3G, Broadband CATV, and WiFi
802.11 "n" products." said Dr. Bami Bastani,
President and Chief Executive Officer of ANADIGICS. 
"These dynamics have required acceleration in our
plans to add production capacity, which have caused short
term productivity issues, but are expected to be resolved
going forward." 

    As of June 30, 2007 cash and short and long-term
marketable securities totaled $176.4 million compared with
$181.1 million at March 31, 2007.   
    "We anticipate some continuing manufacturing
inefficiencies associated with the production capacity ramp
throughout the fourth quarter, said Tom Shields, Executive
Vice President and Chief Financial Officer.  "However,
we remain confident in the Company's ability to expand our
financial leverage as we solve our manufacturing
inefficiencies and achieve a more favorable product
mix." 

    Outlook for the Fourth Quarter 2007

    Net sales for the fourth quarter 2007 are expected to
increase sequentially by approximately 10% to 14%
reflecting the continued strong demand for our products. 
Net sales at this level would represent a 35% to 40%
increase on a comparable basis with fourth quarter 2006. 
Net income per share on a GAAP basis for the fourth quarter
2007 is expected to approximate $0.05 to $0.06.   Pro forma
diluted earnings per share, excluding non-cash stock
compensation expense, are expected in the range of
approximately $0.11 to $0.13, which reflects approximately
$0.02 for the added quarterly operating expenses associated
with the Company's acquisition of the RF Group.  The net
income and pro forma diluted earnings per share are based
upon an estimated diluted weighted average outstanding
common share count of 62.0 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 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 October 31).

    Recent Highlights

    October 08, 2007 - ANADIGICS President and Chief
Executive Officer to
                       Speak at Gilder/Forbes Telecosm
Conference 

    September 18, 2007 - ANADIGICS Amplifier Powers New LG
Chocolate(TM)
                         Handset

    September 12, 2007 - ANADIGICS Appoints John Coleman as
Senior Vice
                         President of Operations

    September 11, 2007 - ANADIGICS Ships 802.11n Power
Amplifiers to NXP
                         Semiconductor for WLAN Module
Solution

    September 05, 2007 - ANADIGICS expands Research and
Development Group
                         through Acquisition of Fairchild
Semiconductor's 
                         RF Design Team

    August 29, 2007 - ANADIGICS Chief Executive Officer and
Chief Financial
                      Officer to Open NASDAQ

    August 28, 2007 - New ANADIGICS ICs for Mobile Devices
Integrate Wi-Fi and
                      Bluetooth RF Front Ends on One Chip

    July 31, 2007 - ANADIGICS Expands Wireless and
Broadband U.S Based Sales
                    Force

    July 26, 2007 - ANADIGICS Amplifier Powers Samsung's
Ultra Edition II 
                    SGH-U700 3G Mobile Phone

    About ANADIGICS, Inc.

    ANADIGICS, Inc. (Nasdaq: ANAD) 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.



ANADIGICS, INC.
Consolidated Statements of Operations
(Amounts in thousands, except per share amounts,
unaudited)
    
                                        Three months ended
                                              (GAAP)      
Nine months ended
                                      September September
September September 
                                        29, 2007 30, 2006 
29, 2007  30, 2006
    
    
       Net sales                         $59,545  $43,943 
$162,987  $117,986
       Cost of sales                      39,387   30,278  
107,637    83,804
       Gross profit                       20,158   13,665  
 55,350    34,182
       Research and development expenses  12,491    8,976  
 33,309    25,340
       Selling and administrative       
        expenses                           7,221    6,139  
 22,062    17,081
       Operating income (loss)               446   (1,450) 
    (21)   (8,239)
       Interest income                     2,338    1,643  
  5,776     4,073
       Interest expense                     (592)  (1,285) 
 (1,872)   (3,860)
       Other income                          173       --  
    173        21
       Income (loss) from continuing    
        operations                         2,365   (1,092) 
  4,056    (8,005)
       Loss from discontinued 
        operations (1)                        --     (220) 
   (965)     (731)
       Net income (loss)                  $2,365  $(1,312) 
 $3,091   $(8,736)
    
       Basic earnings (loss) per share
       Income (loss) from continuing    
        operations                         $0.04   $(0.02) 
  $0.08    $(0.18)
       Loss from discontinued operations
        (1)                                  $--   $(0.01) 
 $(0.02)   $(0.02)
       Net income (loss)                   $0.04   $(0.03) 
  $0.06    $(0.20)
    
       Diluted earnings (loss) per share
       Income (loss) from continuing    
        operations                         $0.04   $(0.02) 
  $0.07    $(0.18)
       Loss from discontinued 
        operations (1)                       $--   $(0.01) 
 $(0.02)   $(0.02)
       Net income (loss)                   $0.04   $(0.03) 
  $0.05    $(0.20)
    
       Basic shares outstanding           57,505   45,237  
 54,114    43,202
       Dilutive shares outstanding        60,648   45,237  
 57,403    43,202
    
       Unaudited Reconciliation of GAAP 
        to Pro Forma Non-GAAP Financial 
        Measures
    
       GAAP net income (loss)             $2,365  $(1,312) 
 $3,091   $(8,736)
       Stock compensation expense in    
        continuing operations
            Cost of sales                    736      466  
  2,487     1,140
            Research and development       1,446      877  
  4,338     2,142
            Selling, general and        
             administrative                1,375      838  
  4,448     2,043
       Purchased RF group cost (R&D     
        expense) (2)                         564       --  
    564        --
       Loss from discontinued operations      --      220  
    965       731
       Pro forma net income (loss)        $6,486   $1,089  
$15,893   $(2,680)
    
       Pro forma earnings (loss) per    
        share  *
       Basic                               $0.11    $0.02  
  $0.29    $(0.06)
       Diluted                             $0.11    $0.02  
  $0.28    $(0.06)
    
       (*) Calculated using related GAAP shares
outstanding
    
       (1) The loss from discontinued operations reflects
the divestiture of
           Telcom Devices, Inc., effective April 2, 2007.
       (2) Reflects costs incurred by the RF Group during
the quarter. The
           Company acquired certain assets and workforce of
the RF Group from
           Fairchild Semiconductor on September 5, 2007.
These costs are
           excluded for pro forma presentation as the costs
of the RF Group
           are incremental to the historical results of
ANADIGICS.



       ANADIGICS, INC.
       Condensed Consolidated Balance Sheets
       (Amounts in thousands)
    
                                                September
29,     December 31,
                                                     2007  
           2006
       Assets                                   
(Unaudited)
    
       Current assets:
          Cash and cash equivalents                $43,594 
          $13,706
          Marketable securities                    126,008 
           60,892
          Accounts receivable                       40,074 
           26,707
          Inventory                                 20,076 
           19,701
          Prepaid expenses and other    
           current assets                            6,468 
            2,632
          Assets of discontinued        
           operations (1)                               -- 
            1,429
       Total current assets                        236,220 
          125,067
    
       Marketable securities                         6,780 
            8,884
       Plant and equipment, net                     60,243 
           41,259
       Goodwill and other intangibles,  
        net of amortization                          6,588 
            5,929
       Other assets                                  1,122 
            1,463
                                                  $310,953 
         $182,602
    
       Liabilities and stockholders'    
        equity
    
       Current liabilities:
          Accounts payable                         $23,695 
          $17,879
          Accrued liabilities                        6,138 
            5,588
          Capital lease obligations                     -- 
              312
          Liabilities of discontinued   
           operations (1)                               -- 
              252
       Total current liabilities                    29,833 
           24,031
    
       Other long-term liabilities                   3,271 
            3,348
       Long-term debt                               38,000 
           38,000
       Long-term capital lease          
        obligations                                     -- 
            1,463
    
       Total Stockholders' equity                  239,849 
          115,760
                                                  $310,953 
         $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 generally
          accepted accounting principles for complete
financial statements.


    For more information, please contact:

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

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

    Investor Relations Contact:
     Thomas Shields
     ANADIGICS, Inc.
     Tel:    [phone]
     Email:  [e-mail]