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

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 securities

140,069

-

Accounts receivable, net

30,921

35,686

Inventories

65,926

38,460

Income taxes receivable

1,566

488

Prepaid expenses and other current assets

2,761

2,063

Deferred taxes

14,988

10,296

Total current assets

525,388

440,660

Property and equipment, net

36,294

32,550

Deferred taxes

709

466

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 expenses

12,889

10,850

Income taxes payable

584

-

Deferred revenue and customer advances

4,699

2,498

Total current liabilities

21,377

16,494

Long-term income taxes payable

412

2,639

Deferred taxes

446

-

Other liabilities

124

-

Total liabilities

22,359

19,133

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,

2012

2011

2012

2011

Revenue

$

68,515

$

60,222

$

264,395

$

264,108

Cost of revenue

18,296

15,678

69,415

69,935

Gross profit

50,219

44,544

194,980

194,173

73.3

%

74.0

%

73.7

%

73.5

%

Operating expenses:

Research and development

12,449

10,999

49,202

38,899

Sales and marketing

6,319

5,701

23,966

22,047

General and administrative

3,468

3,222

14,598

12,078

Total operating expenses

22,236

19,922

87,766

73,024

Income from operations

27,983

24,622

107,214

121,149

40.8

%

40.9

%

40.6

%

45.9

%

Interest and other income (expense), net

68

76

57

602

Income before income taxes

28,051

24,698

107,271

121,751

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:

The article Hittite Microwave Corporation Reports Financial Results for the Fourth Quarter and Year 2012 originally appeared on Fool.com.

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