Anadigics to Gain from Restructuring/Infrastructure Demand
In order to improve its profitability, Anadigics has initiated corporate restructuring.
This will allow the company to reduce operating costs and better align its resources with the evolving demand for infrastructure-based products, over the time. It intends to capitalize on the fact that the infrastructure-targeted products have a higher revenue and profit margin than mobile-targeted products.
Anadigics continues to cut its fixed cost burden by unwinding production of RF (radio frequency) power amplifier and front-end products for a variety of mobile applications including handsets, tablets and data cards in the cellular 3G/4G and WiFi markets.
With the global demand for high-data-rate connectivity to the Internet showing massive growth, demand for high-performance infrastructure-based products is set to rise as well. In order to capitalize on this revenue potential, Anadigics is aligning its R&D investment focus and in-house manufacturing capacity toward a higher mix of infrastructure products. The company is on its way to achieve its target of generating 75% of its total revenue from the Infrastructure segment by the end of this year.
Anadigics continues to expand its product pipeline by launching differentiated solutions while strengthening its relationships with major OEM and chipset partners. The company looks set to exploit the widening range of applications in the WiFi market. Its front-end Integrated Circuits enable producers to save board space, extend battery life and expand high throughput connectivity, earning design wins and driving revenue growth for the company. It recently unveiled three new power amplifiers (PAs) optimized for 3G and 4G small-cell applications, to add to its impressive portfolio of small-cell PAs with best-in-class performance and integration.
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