Share “Anadigics suffers 2Q loss after RIM lowers...”

Anadigics suffers 2Q loss after RIM lowers orders

Associated Press Published: August 4, 2011
Advertisement

WARREN, N.J. (AP) — Anadigics Inc.'s troubles deepened in the second quarter as the maker of wireless communications chips struggled to overcome a steep downturn in shipments to one of its most important customers.

The company said Thursday that it lost $13.1 million, or 19 cents per share, during the three months ending July 2. That contrasted with earnings of $791,000, or a penny a share, at the same time last year. The performance also deteriorated from this year's first quarter when Anadigics lost $10.7 million.

The latest setback wasn't a shock. When it announced its first-quarter results, Anadigics warned the spring would be a tough period because it expected its shipments to BlackBerry maker Research In Motion Ltd. to plummet by about $10 million from the first quarter's volume.

RIM caught Anadigics off guard by switching to a different chip-set vendor that wasn't compatible with Anadigics' products.

Losing that business was a big blow. At one point last year, RIM accounted for roughly one-third of Anadigics' revenue.

Continue reading this story on the...