Hittite Microwave Corporation (NASDAQ:HITT) today reported revenue for the fourth quarter ended December 31, 2013 of $68.8 million, comparable with $68.5 million for the fourth quarter of 2012 and $68.7 million for the third quarter of 2013. Net income for the quarter was $16.5 million, or $0.53 per diluted share, a decrease of 6.7% compared with $17.7 million, or $0.57 per diluted share, for the fourth quarter of 2012, and a decrease of 11.8% compared with $18.7 million, or $0.60 per diluted share, for the third quarter of 2013. For the fourth quarter of 2013, revenue from customers in the United States was $28.4 million, or 41.3% of the company’s total revenue, and revenue from customers outside the United States was $40.4 million, or 58.7% of total revenue. Gross margin was 67.3% for the fourth quarter of 2013, compared with 73.3% for the fourth quarter of 2012 and 71.2% for the third quarter of 2013. Operating income for the fourth quarter of 2013 was $25.0 million, or 36.3% of revenue, compared with $28.0 million, or 40.8% of revenue, for the fourth quarter of 2012 and $28.0 million, or 40.7% of revenue, for the third quarter of 2013. Total cash and marketable securities at December 31, 2013 was $472.5 million, an increase of $15.2 million for the quarter. “In the fourth quarter we were able to meet our revenue targets despite challenges in some of our markets,” said Rick Hess, President and CEO. “The decrease in profitability in the quarter was primarily the result of gross margins that in the aggregate were on the low end of our range, due to an unfavorable mix in products and markets, as well as several military development contracts that carry relatively low margins. These contracts, while less profitable in the near term, provide important opportunities for growth through future production contracts at higher margin levels. We are confident that our innovation and engineering leadership will continue to drive our business growth.”
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.