Hittite Microwave Corporation Reports Financial Results for the Second Quarter of 2013

Business Wirevia The Motley Fool
Updated

Hittite Microwave Corporation Reports Financial Results for the Second Quarter of 2013

CHELMSFORD, Mass.--(BUSINESS WIRE)-- Hittite Microwave Corporation (NAS: HITT) today reported revenue for the second quarter ended June 30, 2013 of $68.6 million, an increase of 4.9% compared with $65.4 million for the second quarter of 2012, and an increase of 1.3% compared with $67.7 million for the first quarter of 2013. Net income for the quarter was $18.0 million, or $0.58 per diluted share, an increase of 5.1% compared with $17.2 million, or $0.56 per diluted share, for the second quarter of 2012, and an increase of 2.6% compared with $17.6 million, or $0.57 per diluted share, for the first quarter of 2013.


For the second quarter of 2013, revenue from customers in the United States was $30.2 million, or 44.0% of the company's total revenue, and revenue from customers outside the United States was $38.4 million, or 56.0% of total revenue. Gross margin was 72.4% for the second quarter of 2013, compared with 74.5% for the second quarter of 2012 and 73.7% for the first quarter of 2013. Operating income for the second quarter of 2013 was $27.5 million, or 40.1% of revenue, compared with $26.2 million, or 40.1% of revenue, for the second quarter of 2012 and $27.1 million, or 40.1% of revenue, for the first quarter of 2013. Total cash and marketable securities at June 30, 2013 was $438.2 million, an increase of $8.8 million for the quarter.

Business Outlook

The company expects revenue for the third quarter ending September 30, 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) 629-9866. 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 4627501. 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 March 31, 2013, as filed with the Securities and Exchange Commission.

Hittite Microwave Corporation

Condensed Consolidated Balance Sheets (unaudited)

(In thousands)

June 30, 2013

December 31, 2012

Assets

Current assets:

Cash and cash equivalents

$

248,197

$

269,157

Marketable securities

189,972

140,069

Accounts receivable, net

35,737

30,921

Inventories

76,477

65,926

Income taxes receivable

4,672

1,566

Prepaid expenses and other current assets

2,669

2,761

Deferred taxes

14,213

14,988

Total current assets

571,937

525,388

Property and equipment, net

36,663

36,294

Deferred taxes

1,700

709

Other assets

9,415

11,172

Total assets

$

619,715

$

573,563

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

4,668

$

3,205

Accrued expenses

14,843

12,889

Income taxes payable

239

584

Deferred revenue and customer advances

4,793

4,699

Total current liabilities

24,543

21,377

Long-term income taxes payable

3,401

412

Deferred taxes

521

446

Other liabilities

110

124

Total liabilities

28,575

22,359

Total stockholders' equity

591,140

551,204

Total liabilities and stockholders' equity

$

619,715

$

573,563

Hittite Microwave Corporation

Condensed Consolidated Statements of Operations (unaudited)

(In thousands except per-share data)

Three Months Ended June 30,

Six Months Ended June 30,

2013

2012

2013

2012

Revenue

$ 68,607

$ 65,387

$ 136,303

$ 128,710

Cost of revenue

18,933

16,675

36,730

33,357

Gross profit

49,674

48,712

99,573

95,353

72.4%

74.5%

73.1%

74.1%

Operating expenses:

Research and development

12,729

12,421

25,947

24,204

Sales and marketing

5,983

5,995

11,773

11,630

General and administrative

3,422

4,072

7,193

7,840

Total operating expenses

22,134

22,488

44,913

43,674

Income from operations

27,540

26,224

54,660

51,679

40.1%

40.1%

40.1%

40.2%

Interest and other income (expense), net

132

43

228

(63)

Income before income taxes

27,672

26,267

54,888

51,616

Provision for income taxes

9,622

9,093

19,240

18,450

Net income

$ 18,050

$ 17,174

$ 35,648

$ 33,166

Earnings per share:

Basic

$ 0.59

$ 0.57

$ 1.17

$ 1.09

Diluted

$ 0.58

$ 0.56

$ 1.15

$ 1.08

Weighted average shares outstanding:

Basic

30,608

30,344

30,574

30,336

Diluted

31,026

30,851

31,038

30,826



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

KEYWORDS: United States North America Massachusetts

INDUSTRY KEYWORDS:

The article Hittite Microwave Corporation Reports Financial Results for the Second Quarter of 2013 originally appeared on Fool.com.

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