Hittite Microwave Corporation Reports Financial Results for the Fourth Quarter and Year 2012

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Hittite Microwave Corporation Reports Financial Results for the Fourth Quarter and Year 2012

CHELMSFORD, Mass.--(BUSINESS WIRE)-- Hittite Microwave Corporation (NAS: HITT) today reported revenue for the fourth quarter ended December 31, 2012 of $68.5 million, an increase of 13.8% compared with $60.2 million for the fourth quarter of 2011, and an increase of 2.0% compared with $67.2 million for the third quarter of 2012. Net income for the fourth quarter was $17.7 million, or $0.57 per diluted share, a decrease of 16.6% compared with $21.2 million, or $0.69 per diluted share, for the fourth quarter of 2011, and an increase of 0.1% compared with $17.7 million, or $0.57 per diluted share, for the third quarter of 2012. Net income for the fourth quarter of 2011 included a $5.5 million, $0.18 per diluted share, tax benefit related to the resolution of a tax audit.

For the fourth quarter of 2012, revenue from customers in the United States was $30.3 million, or 44.3% of the company's total revenue, and revenue from customers outside the United States was $38.2 million, or 55.7% of total revenue. Gross margin was 73.3% for the fourth quarter of 2012, compared with 74.0% for the fourth quarter of 2011 and 73.6% for the third quarter of 2012. Operating income for the fourth quarter of 2012 was $28.0 million, or 40.8% of revenue, compared with $24.6 million, or 40.9% of revenue, for the fourth quarter of 2011 and $27.6 million, or 41.0% of revenue, for the third quarter of 2012. Total cash and marketable securities at December 31, 2012 was $409.2 million, an increase of $16.4 million for the quarter.


For the full year 2012, revenue was $264.4 million compared with $264.1 million for 2011. Net income for the year was $68.6 million, or $2.22 per diluted share, a decrease of 19.0% from $84.7 million, or $2.77 per diluted share, for 2011. Net bookings for 2012 were $264.2 million, compared with $256.9 million for 2011. Backlog at December 31, 2012 was $67.2 million compared with $67.4 million at December 31, 2011.

Business Outlook

The company expects revenue for the first quarter ending March 31, 2013 to be in the range of $66.5 million to $68.5 million and net income to be in the range of $16.7 million to $17.7 million, or $0.54 to $0.57 per diluted share.

Webcast and Taped Replay

The company will host a conference call to discuss its financial results at 5:00 p.m. ET today. The conference call can be accessed by dialing (480) 629-9819. A live webcast of the call will be available online on the Hittite Microwave website. To listen to the live webcast, go to the Investors page of the Hittite Microwave website at www.hittite.com and click on the webcast link located under News & Events. A telephonic replay of the call also will be available for one week after the live call by dialing (303) 590-3030, access code 4589614. Following the call, a webcast replay will also be available by visiting the Investors page at www.hittite.com.

About Hittite Microwave Corporation

Hittite Microwave Corporation is an innovative designer and manufacturer of high performance integrated circuits, or ICs, modules, subsystems and instrumentation for technically demanding digital, RF, microwave and millimeterwave applications covering DC to 110 GHz. The company's standard and custom products apply analog, digital and mixed-signal semiconductor technologies, which are used in a wide variety of wireless & wired communication and sensor applications for the automotive, broadband, cellular infrastructure, fiber optic, microwave & millimeterwave communications, military, space and test & measurement markets. The company is headquartered in Chelmsford, Massachusetts.

"Safe Harbor Statement" under the Private Securities Litigation Reform Act of 1995

Statements in this press release regarding Hittite Microwave Corporation that do not relate to historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, any statements regarding our expectations as to future levels of revenue, net income and earnings per share. Readers are cautioned that these forward-looking statements are subject to risks and uncertainties and are only predictions, and actual future events and results may differ materially from these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to: the impact of macro-economic conditions on demand for our products; our ability to effectively manage our costs and expenses in response to fluctuations in our growth rate; market acceptance of our new products; our ability to assess accurately our end market requirements; our success in maintaining the business of our significant customers; our ability to keep pace with new semiconductor processes; risks related to our dependence on third-party suppliers; regulatory, operational, financial and political risks inherent in operating internationally; competition within the semiconductor industry; product returns and warranty claims; the possibility that intellectual property claims initiated by or against us could be costly or have adverse outcomes; and other risks and uncertainties that are discussed under "Risk Factors" in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2012, as filed with the Securities and Exchange Commission.

 
Hittite Microwave Corporation
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
 
 December 31, 2012 December 31, 2011
Assets
Current assets:
Cash and cash equivalents$269,157$353,667
Marketable securities140,069-
Accounts receivable, net30,92135,686
Inventories65,92638,460
Income taxes receivable1,566488
Prepaid expenses and other current assets2,7612,063
Deferred taxes 14,988 10,296
Total current assets525,388440,660
Property and equipment, net36,29432,550
Deferred taxes709466
Other assets 11,172 14,889
Total assets$573,563$488,565
 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$3,205$3,146
Accrued expenses12,88910,850
Income taxes payable584-
Deferred revenue and customer advances 4,699 2,498
Total current liabilities21,37716,494
Long-term income taxes payable4122,639
Deferred taxes446-
Other liabilities 124 -
Total liabilities22,35919,133
Total stockholders' equity 551,204 469,432
Total liabilities and stockholders' equity$573,563$488,565
 

   
Hittite Microwave Corporation
Condensed Consolidated Statements of Operations (unaudited)
(In thousands except per-share data)
 
Three Months Ended December 31,Twelve Months Ended December 31,
2012201120122011
 
Revenue$68,515$60,222$264,395$264,108
Cost of revenue 18,296  15,678  69,415  69,935 
Gross profit50,21944,544194,980194,173
 73.3% 74.0% 73.7% 73.5%
Operating expenses:
Research and development12,44910,99949,20238,899
Sales and marketing6,3195,70123,96622,047
General and administrative 3,468  3,222  14,598  12,078 
Total operating expenses 22,236  19,922  87,766  73,024 
Income from operations27,98324,622107,214121,149
40.8%40.9%40.6%45.9%
 
Interest and other income (expense), net 68  76  57  602 
Income before income taxes28,05124,698107,271121,751
Provision for income taxes 10,337  3,457  38,702  37,063 
Net income$17,714 $21,241 $68,569 $84,688 
 
Earnings per share:
Basic$0.58 $0.70 $2.26 $2.81 
Diluted$0.57 $0.69 $2.22 $2.77 
 
Weighted average shares outstanding:
Basic 30,401  30,234  30,359  30,178 
Diluted 31,003  30,603  30,895  30,586 
 



Hittite Microwave Corporation
William W. Boecke, 978-250-3343
V.P. and Chief Financial Officer

KEYWORDS:   United States  North America  Massachusetts

INDUSTRY KEYWORDS:

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