Hittite Microwave Corporation Reports Financial Results For The Third Quarter Of 2013

Hittite Microwave Corporation (NASDAQ:HITT) today reported revenue for the third quarter ended September 30, 2013 of $68.7 million, an increase of 2.3% compared with $67.2 million for the third quarter of 2012, and an increase of 0.2% compared with $68.6 million for the second quarter of 2013. Net income for the quarter was $18.7 million, or $0.60 per diluted share, an increase of 5.9% compared with $17.7 million, or $0.57 per diluted share, for the third quarter of 2012, and an increase of 3.8% compared with $18.0 million, or $0.58 per diluted share, for the second quarter of 2013.

“I am proud of the Hittite Team for delivering another solid quarter while facing challenging markets,” said Rick Hess, President and CEO of Hittite. “We are confident that our innovation and engineering leadership will continue to drive our business success.”

For the third quarter of 2013, revenue from customers in the United States was $29.8 million, or 43.4% of the company’s total revenue, and revenue from customers outside the United States was $38.9 million, or 56.6% of total revenue. Gross margin was 71.2% for the third quarter of 2013, compared with 73.6% for the third quarter of 2012 and 72.4% for the second quarter of 2013. Operating income for the third quarter of 2013 was $28.0 million, or 40.7% of revenue, compared with $27.6 million, or 41.0% of revenue, for the third quarter of 2012 and $27.5 million, or 40.1% of revenue, for the second quarter of 2013. Total cash and marketable securities at September 30, 2013 was $457.3 million, an increase of $19.2 million for the quarter.

Business Outlook

The company expects revenue for the fourth quarter ending December 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) 629-9770. 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 4643630. 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 June 30, 2013, as filed with the Securities and Exchange Commission.
Hittite Microwave Corporation
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
 
  September 30, 2013   December 31, 2012
Assets
Current assets:
Cash and cash equivalents $ 219,232 $ 269,157
Marketable securities 238,097 140,069
Accounts receivable, net 35,671 30,921
Inventories 77,722 65,926
Income taxes receivable 4,131 1,566
Prepaid expenses and other current assets 2,960 2,761
Deferred taxes   13,451   14,988
Total current assets 591,264 525,388
Property and equipment, net 40,083 36,294
Deferred taxes 2,066 709
Other assets   8,869   11,172
Total assets $ 642,282 $ 573,563
 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 5,797 $ 3,205
Accrued expenses 12,258 12,889
Income taxes payable 206 584
Deferred revenue and customer advances   5,174   4,699
Total current liabilities 23,435 21,377
Long-term income taxes payable 4,964 412
Deferred taxes 348 446
Other liabilities   108   124
Total liabilities 28,855 22,359
Total stockholders' equity   613,427   551,204
Total liabilities and stockholders' equity $ 642,282 $ 573,563
 

Hittite Microwave Corporation        
Condensed Consolidated Statements of Operations (unaudited)
(In thousands except per-share data)

Three Months Ended September 30,
Nine Months Ended September 30,
2013 2012 2013 2012
 
Revenue $ 68,737 $ 67,170 $ 205,040 $ 195,880
Cost of revenue   19,808     17,762     56,538     51,119  
Gross profit 48,929 49,408 148,502 144,761
  71.2 %   73.6 %   72.4 %   73.9 %
Operating expenses:
Research and development 11,994 12,549 37,941 36,753
Sales and marketing 5,638 6,017 17,411 17,647
General and administrative   3,298     3,290     10,491     11,130  
Total operating expenses   20,930     21,856     65,843     65,530  
Income from operations 27,999 27,552 82,659 79,231
40.7 % 41.0 % 40.3 % 40.4 %
 
Interest and other income (expense), net   105     52     333     (11 )
Income before income taxes 28,104 27,604 82,992 79,220
Provision for income taxes   9,365     9,915     28,605     28,365  
Net income $ 18,739   $ 17,689   $ 54,387   $ 50,855  
 
Earnings per share:
Basic $ 0.61   $ 0.58   $ 1.78   $ 1.68  
Diluted $ 0.60   $ 0.57   $ 1.75   $ 1.65  
 
Weighted average shares outstanding:
Basic   30,619     30,361     30,589     30,345  
Diluted   31,122     30,924     31,066     30,859  

Copyright Business Wire 2010

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