Hittite Microwave Corporation Reports Financial Results For The Fourth Quarter And Year 2011

Hittite Microwave Corporation (NASDAQ:HITT) today reported revenue for the fourth quarter ended December 31, 2011 of $60.2 million, representing a decrease of 8.2% compared with $65.6 million for the fourth quarter of 2010, and a decrease of 11.6% compared with $68.1 million for the third quarter of 2011. Net income for the quarter was $21.2 million, or $0.69 per diluted share, an increase of 1.5% compared with $20.9 million, or $0.69 per diluted share, for the fourth quarter of 2010, and a decrease of 5.3% compared with $22.4 million, or $0.73 per diluted share, for the third quarter of 2011. Fourth quarter 2011 net income includes a $5.5 million, $0.18 per diluted share, tax benefit related to the resolution of a tax audit.

For the fourth quarter of 2011, revenue from customers in the United States was $27.7 million, or 46.0% of the company’s total revenue, and revenue from customers outside the United States was $32.5 million, or 54.0% of total revenue. Gross margin was 74.0% for the fourth quarter of 2011, compared with 74.5% for both the fourth quarter of 2010 and the third quarter of 2011. Operating income for the fourth quarter was $24.6 million, or 40.9% of revenue. Total cash and cash equivalents at December 31, 2011 was $353.7 million, an increase of $2.5 million for the quarter.

For the full year 2011, revenue was $264.1 million, an 8.1% increase from $244.3 million for 2010. Net income for the year was $84.7 million, or $2.77 per diluted share, an increase of 9.9% from $77.0 million, or $2.56 per diluted share, for 2010. Net bookings for 2011 were $256.9 million, compared with $254.9 million for 2010. Backlog at December 31, 2011 was $67.4 million compared with $74.5 million at December 31, 2010.

Business Outlook

The company expects revenue for the first quarter ending March 31, 2012 to be in the range of $61.0 million to $63.0 million and net income to be in the range of $15.5 million to $16.3 million, or $0.51 to $0.53 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. 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 4505391. 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, 2011, as filed with the Securities and Exchange Commission.

Hittite Microwave Corporation

Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
    December 31, 2011   December 31, 2010
Assets
Current assets:
Cash and cash equivalents $ 353,667 $ 295,490
Accounts receivable, net 35,686 34,534
Inventories 38,460 23,219
Income taxes receivable 488 3,914
Prepaid expenses and other current assets 2,063 1,333
Deferred taxes   10,296   8,178
Total current assets 440,660 366,668
Property and equipment, net 32,550 29,470
Deferred taxes 466 -
Other assets   14,889   9,371
Total assets $ 488,565 $ 405,509
 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 3,146 $ 3,228
Accrued expenses 10,850 9,173
Deferred revenue and customer advances   2,498   10,222
Total current liabilities 16,494 22,623
Long-term income taxes payable 2,639 6,845
Deferred taxes   -   289
Total liabilities 19,133 29,757
Total stockholders' equity   469,432   375,752
Total liabilities and stockholders' equity $ 488,565 $ 405,509

 
 
Hittite Microwave Corporation
Condensed Consolidated Statements of Operations (unaudited)
(In thousands except per-share data)
  Three Months Ended December 31,   Year Ended December 31,
  2011       2010     2011       2010  
 
Revenue $ 60,222 $ 65,583 $ 264,108 $ 244,256
Cost of revenue   15,678     16,703     69,935     62,617  
Gross profit 44,544 48,880 194,173 181,639
  74.0 %   74.5 %   73.5 %   74.4 %
Operating expenses:
Research and development 10,999 8,372 38,899 31,467
Sales and marketing 5,701 5,365 22,047 19,420
General and administrative   3,222     2,954     12,078     11,568  
Total operating expenses   19,922     16,691     73,024     62,455  
Income from operations 24,622 32,189 121,149 119,184
40.9 % 49.1 % 45.9 % 48.8 %
 
Interest and other income (expense), net   76     139     602     62  
Income before income taxes 24,698 32,328 121,751 119,246
Provision for income taxes   3,457     11,410     37,063     42,215  
Net income $ 21,241   $ 20,918   $ 84,688   $ 77,031  
 
Earnings per share:
Basic $ 0.70   $ 0.70   $ 2.81   $ 2.60  
Diluted $ 0.69   $ 0.69   $ 2.77   $ 2.56  
 
Weighted Average Shares Outstanding:
Basic   30,234     29,963     30,178     29,584  
Diluted   30,603     30,439     30,586     30,135  

Copyright Business Wire 2010

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