Hittite Microwave Corporation (NASDAQ:HITT) today reported revenue for the fourth quarter ended December 31, 2010 of $65.6 million, representing an increase of 50.2% compared with $43.7 million for the fourth quarter of 2009, and an increase of 2.2% compared with $64.2 million for the third quarter of 2010. Net income for the quarter was $20.9 million, or $0.69 per diluted share, an increase of 55.9% compared with $13.4 million, or $0.45 per diluted share, for the fourth quarter of 2009, and an increase of 0.4% compared with $20.8 million, or $0.69 per diluted share, for the third quarter of 2010. For the fourth quarter of 2010, revenue from customers in the United States was $30.0 million, or 45.7% of the company’s total revenue, and revenue from customers outside the United States was $35.6 million, or 54.3% of total revenue. Gross margin was 74.5% for the fourth quarter of 2010, compared with 74.8% for the fourth quarter of 2009 and 74.6% for the third quarter of 2010. Operating income for the fourth quarter was $32.2 million, or 49.1% of revenue. Total cash and cash equivalents at December 31, 2010 was $295.5 million, an increase of $22.5 million for the quarter. For the full year 2010, revenue was $244.3 million, a 49.9% increase from $163.0 million for 2009. Net income for the year was $77.0 million, or $2.56 per diluted share, an increase of 66.8% from $46.2 million, or $1.55 per diluted share, for 2009. Net bookings for 2010 were $254.9 million, a 36.0% increase over bookings of $187.3 million for 2009. The backlog at December 31, 2010 was $74.5 million compared with $63.9 million at December 31, 2009. Business Outlook The company expects revenue for the first quarter ending March 31, 2011 to be in the range of $65.5 million to $67.5 million and net income to be in the range of $19.2 million to $20.1 million, or $0.63 to $0.66 per diluted share. This net income guidance includes transaction costs and expected operating expenses attributable to Arctic Silicon Devices, which the company acquired in January 2011.
Hittite Microwave (HITT) stock has been downgraded to "neutral" from "buy," D.A. Davidson said Tuesday. The firm said the recent bid from Analog Devices (ADI) to purchase the company for $78 a share will likely close as expected in August.