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Hittite Microwave Corporation Reports Financial Results for the Third Quarter of 2012

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CHELMSFORD, Mass.--(BUSINESS WIRE)--

Hittite Microwave Corporation (NASDAQ: HITT) today reported revenue for the third quarter ended September 30, 2012 of $67.2 million, a decrease of 1.4% compared with $68.1 million for the third quarter of 2011, and an increase of 2.7% compared with $65.4 million for the second quarter of 2012. Net income for the quarter was $17.7 million, or $0.57 per diluted share, a decrease of 21.1% compared with $22.4 million, or $0.73 per diluted share, for the third quarter of 2011, and an increase of 3.0% compared with $17.2 million, or $0.56 per diluted share, for the second quarter of 2012.

For the third quarter of 2012, revenue from customers in the United States was $32.8 million, or 48.7% of the company's total revenue, and revenue from customers outside the United States was $34.4 million, or 51.3% of total revenue. Gross margin was 73.6% for the third quarter of 2012, compared with 74.5% for both the third quarter of 2011 and the second quarter of 2012. Operating income for the third quarter of 2012 was $27.6 million, or 41.0% of revenue, compared with $33.3 million, or 48.8% of revenue, for the third quarter of 2011 and $26.2 million, or 40.1% of revenue, for the second quarter of 2012. Total cash and marketable securities at September 30, 2012 was $392.8 million, an increase of $17.4 million for the quarter.

Business Outlook

The company expects revenue for the fourth quarter ending December 31, 2012 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 $17.6 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) 629-9645. 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 4567074. 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, 2012, as filed with the Securities and Exchange Commission.

 
Hittite Microwave Corporation
Condensed Consolidated Balance Sheets (unaudited)
(In thousands)
  September 30, 2012     December 31, 2011
Assets
Current assets:
Cash and cash equivalents $ 342,726 $ 353,667
Marketable securities 50,092 -
Accounts receivable, net 33,317 35,686
Inventories 60,020 38,460
Income taxes receivable 2,134 488
Prepaid expenses and other current assets 3,045 2,063
Deferred taxes   13,281   10,296
Total current assets 504,615 440,660
Property and equipment, net 35,840 32,550
Deferred taxes 2,453 466
Other assets   11,770   14,889
Total assets $ 554,678 $ 488,565
 

Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable $ 3,754 $ 3,146
Accrued expenses 16,246 10,850
Deferred revenue and customer advances   2,540   2,498
Total current liabilities 22,540 16,494
Long-term income taxes payable 1,121 2,639
Other liabilities   87   -
Total liabilities 23,748 19,133
Total stockholders' equity   530,930   469,432

Total liabilities and stockholders' equity

$ 554,678 $ 488,565
 

 
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,

  2012       2011     2012       2011  
 
Revenue $ 67,170 $ 68,135 $ 195,880 $ 203,886
Cost of revenue   17,762     17,395     51,119     54,257  
Gross profit 49,408 50,740 144,761 149,629
  73.6 %   74.5 %   73.9 %   73.4 %
Operating expenses:
Research and development 12,549 9,109 36,753 27,900
Sales and marketing 6,017 5,428 17,647 16,346
General and administrative   3,290     2,924     11,130     8,856  
Total operating expenses   21,856     17,461     65,530     53,102  
Income from operations 27,552 33,279 79,231 96,527
41.0 % 48.8 % 40.4 % 47.3 %
 
Interest and other income (expense), net   52     236     (11 )   526  
Income before income taxes 27,604 33,515 79,220 97,053
Provision for income taxes   9,915     11,091     28,365     33,606  
Net income $ 17,689   $ 22,424   $ 50,855   $ 63,447  
 
Earnings per share:
Basic $ 0.58   $ 0.74   $ 1.68   $ 2.10  
Diluted $ 0.57   $ 0.73   $ 1.65   $ 2.07  
 
Weighted average shares outstanding:
Basic   30,361     30,199     30,345     30,159  
Diluted   30,924     30,592     30,859     30,580  

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

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