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ANADIGICS Sways Galaxy Note

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Last week, ANADIGICS, Inc. (ANAD) announced that it has started shipping its power amplifiers (PAs) to Samsung Electronics. These amplifiers support Samsung Galaxy Note with its High-Efficiency-at-Low-Power (HELP4) and HELP3E amplifiers. These will replace the Galaxy Note 19228 (TD-SCDMA) and Galaxy Note 1889 (:CDMA) in the Chinese market, whereas the Galaxy Note SHV-E160L would be out of date in the Korean market.

The power amplifiers supplied by the company are to enhance the battery longevity of the Galaxy Note by providing a platform for optimum power output capacity. Furthermore, the existing bonds between ANADIGICS and Samsung Electronics will inevitably grow together even further through this venture.

Samsung Electronics has been an integral contributor to the net sales of the company for years now. In 2011, Samsung accounted for nearly 19% of net sales reported by ANADIGICS. It is imperative that such advancements keep accruing for the company as it grapples with a difficult fiscal situation clouding its performance in the global economy.

While turbulent times prevail in the world today, jeopardizing the economic scenario, ANADIGICS should remain wary of a few competitors who are showing approbatory vigor in reporting impressive results, even at such difficult times. Shipment orders for MEMSIC, Inc. (MEMS) increased almost 213% year over year to reach 35 million in the last quarter of 2011. Other ominous players in the industry remain Silicon Motion Technology Corp. (SIMO) and Rohm Co. Ltd. (ROHCY).

The current Zacks Consensus Estimates for ANADIGICS is a loss of 21 cents and 78 cents for the first quarter of 2012 and for fiscal 2012, respectively. The company currently retains a Zacks #4 Rank, which translates into a short-term Sell rating. However, we maintain our Neutral recommendation on the stock.

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