If you invest in semiconductor companies like I do, especially small semiconductor companies, you have to accept volatility. A case in point is Anadigics (NASDAQ:ANAD), which reported results for its first fiscal quarter on April 24. In response, the shares (of which I count myself an owner) plummeted by more than 10% the next day.

Was the haircut justified? Let's take a look.

Anadigics sales totaled $49.6 million, up 43% from a year ago. Its gross profit margin expanded 33%, compared to 26% last year, and both its operating and net losses showed strong improvement. Despite the big jump in revenue, the company still isn't making any money, though it's getting close. Its net loss was $1.2 million ($0.02 per share) compared to $4.6 million ($0.12 per share) last year.

For the second quarter, management forecast a sequential revenue uptick of 5%-7%, which would amount to a 33%-35% increase over last year's Q2. While this is still strong growth, it is definitely a sharp reduction in the year-over-year growth rate.

Looking over the long term -- you know, beyond next quarter and out a couple years -- this company has a huge growth opportunity in front of it. It's well positioned to benefit from some of the biggest trends around, including the increasing penetration of wireless and broadband technology. Anadigics manufactures semiconductor devices using a material called gallium arsenide, which has advantages over silicon-based devices, including faster operating speeds and lower power consumption. Its products include power amplifiers that are used in advanced cell phones (not the cheapies) and other electronic gadgets, and tuners for set-top boxes. It competes with companies like RF Micro Devices (NASDAQ:RFMD) and Triquint (NASDAQ:TQNT) that manufacture similar devices from gallium arsenide.

Given the outlook for slowing growth and the potential impact of a slowdown in consumer spending, the pullback in the share price may have been warranted. Also, it's worth remembering that the growth opportunity is just that -- an opportunity. Anadigics will have to capitalize on it to drive strong share gains. It will take a couple years before we know if that's possible.

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Fool contributor Dan Bloom owns shares of Anadigics. If you would like to comment on this article, he can be reached at blm_dn@yahoo.com.