Semiconductor solutions provider Anadigics
Into the numbers
Revenue for the quarter fell to $35.6 million from $51.7 million a year ago, down 31.1% on a year-over-year basis. Shipments to BlackBerry maker Research In Motion
The RIM effect
Anadigics' problems compounded when RIM shifted to a different chipset vendor. The company's products were not compatible with the new chipsets, which led to a fall in shipments. Also, Anadigics could not meet the demand of power amplifiers, leading to supply delays that finally resulted in RIM backing out. Last year, RIM had accounted for almost a third of the company's revenue. With such a huge loss of revenue from one of its most important customers, Anadigics may find the going tough.
Plans in the pipeline
Anadigics used to be the primary provider of power amplifiers to RIM, but its market has been locked in by Skyworks Solutions
However, there are similar concerns plaguing other industry players. Peers such as Trident Microsystems
Anadigics expects its new power amplifiers that go into production next year to propel the company's addressable market to $3 billion. However, with competitors on its tail, Anadigics appears to be too optimistic about its prospects. This stock has been going downhill, and I don't see a bright future.
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