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.
With the company's RIM relationship in flux, Anadigics revenue plunged 31 percent from last year to $35.6 million. That was in line with analyst estimates that were lowered after Anadigics dimmed its outlook in May.
If not for costs covering employee stock and several other items, Anadigics said it would have lost 14 cents per share. On that basis, Anadigics fared slightly better than the average loss estimate of 16 cents per share among analysts surveyed by FactSet.
That provided little solace to investors worried about how long it will take for Anadigics to recover from the dwindling RIM shipments. The company, based in Warren, N.J., is hoping to generate more revenue from other key wireless customers such as Samsung Electronics Co. and LG Electronics Inc.
Anadigics' shares shed 14 cents, or more than 4 percent, to $2.93 in early afternoon trading Thursday.