Exhibit 99.1
Hittite Microwave Corporation (ticker: HITT, exchange: NASDAQ) News Release - July 24, 2008.
Press Release
HITTITE MICROWAVE CORPORATION REPORTS FINANCIAL RESULTS
FOR THE SECOND QUARTER OF 2008
CHELMSFORD, MA - July 24, 2008 - Hittite Microwave Corporation (NASDAQ:HITT) today reported revenue for the second quarter ended June 30, 2008 of $45.0 million, representing an increase of 19.6% compared with $37.6 million for the second quarter of 2007 and an increase of 4.0% compared with $43.3 million for the first quarter of 2008. Net income for the quarter was $13.5 million, or $0.43 per diluted share, an increase of 10.7% compared with $12.2 million, or $0.39 per diluted share, for the second quarter of 2007, and an increase of 3.2% compared with $13.0 million, or $0.42 per diluted share, for the first quarter of 2008.
“We are pleased with our second quarter results,” said Stephen Daly, Chairman and CEO. “Increased international sales allowed us to achieve our objectives. Our product development team continued to execute, and during the quarter we introduced our eighteenth product line, a new Phase Lock Loop (PLL) product line, which will serve all of our target end markets. In total, we introduced 26 new products during the quarter across all of our product lines, in line with our plan for the year.”
For the second quarter of 2008, revenue from customers in the United States was $18.2 million, or 40% of the company’s total revenue, and revenue from customers outside the United States was $26.8 million, or 60% of total revenue. Gross margin was 70.8% for the second quarter as compared with 71.0% for the second quarter of 2007 and 70.1% for the first quarter of 2008. Operating income for the second quarter was $19.8 million, or 44.0% of revenue. Total cash at the end of the second quarter of 2008 was $186.2 million, an increase for the quarter of $5.0 million.
Business Outlook
The company currently expects revenue for the third quarter ending September 30, 2008 to be in the range of $44.5 million to $45.5 million and net income to be in the range of $13.1 million to $13.5 million, or $0.42 to $0.43 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 Investor Relations page of the Hittite Microwave web site at www.hittite.com and click on the webcast icon located under Conference Calls. A telephonic replay of the call also will be available for one week after the live call by dialing (719) 457-0820, access code 6314790. Following the call, a webcast replay will also be available by visiting the Investor Relations page at www.hittite.com.
About Hittite Microwave Corporation
Hittite Microwave is an innovative designer and developer of high performance integrated circuits, or ICs, modules, subsystems and instrumentation for technically demanding radio frequency, or RF, microwave and millimeterwave applications. Products include amplifiers, attenuators, data converters, frequency dividers and detectors, frequency multipliers, high speed digital logic, interface, mixers and converters, modulators and demodulators, oscillators, passives, phase lock loop (PLL), phase shifters, power detectors, sensors, switches, synthesizers and variable gain amplifiers. Hittite’s products are used in a variety of applications and end markets including automotive, broadband, cellular infrastructure, fiber optic, microwave and millimeterwave communications, military, space, and test and measurement. The company utilizes radio frequency integrated circuits (RFIC), monolithic microwave integrated circuits (MMIC), multi-chip modules (MCM) and microwave integrated circuit (MIC) technologies. The company is headquartered in Chelmsford, MA.
“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: market acceptance of our new products; our ability to assess market requirements accurately; our success in maintaining the business of our significant customers; our ability to keep pace with new semiconductor processes; regulatory, operational, financial and political risks inherent in operating internationally; competition within the semiconductor industry; product returns and warranty claims; our ability to manage our growth and costs effectively; our belief that growth and expansion of our business will continue into 2008; protection of our intellectual property; the growth and fiscal strength of our end markets; and other risks and uncertainties that are discussed under “Risk Factors” in our Quarterly Report on Form 10-Q for the three months ended March 31, 2008, as filed with the Securities and Exchange Commission.
Contact: William W. Boecke, V.P. and Chief Financial Officer (978-250-3343)
Hittite Microwave Corporation | |||||||
Condensed Consolidated Balance Sheets (unaudited) | |||||||
(In thousands) | |||||||
June 30, 2008 | December 31, 2007 | ||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 186,212 | $ | 65,735 | |||
Available-for-sale investments | - | 99,007 | |||||
Accounts receivable, net | 25,831 | 22,253 | |||||
Inventories | 11,744 | 14,129 | |||||
Deferred costs | 214 | 242 | |||||
Income taxes receivable | 1,000 | 1,072 | |||||
Prepaid expenses and other current assets | 1,175 | 677 | |||||
Deferred taxes | 5,007 | 4,281 | |||||
Total current assets | 231,183 | 207,396 | |||||
Property and equipment, net | 18,825 | 18,824 | |||||
Other assets | 8,178 | 8,275 | |||||
Total assets | $ | 258,186 | $ | 234,495 | |||
Liabilities and Stockholders' Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 2,052 | $ | 2,647 | |||
Accrued expenses | 7,564 | 6,121 | |||||
Income taxes payable | - | - | |||||
Deferred revenue and customer advances | 3,176 | 6,098 | |||||
Total current liabilities | 12,792 | 14,866 | |||||
Long-term income taxes payable | 3,268 | 3,180 | |||||
Deferred taxes | 157 | 156 | |||||
Total liabilities | 16,217 | 18,202 | |||||
Total stockholders' equity | 241,969 | 216,293 | |||||
Total liabilities and stockholders' equity | $ | 258,186 | $ | 234,495 |
Hittite Microwave Corporation | |||||||||||||
Condensed Consolidated Statements of Operations (unaudited) | |||||||||||||
(In thousands except per-share data) | |||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
2008 | 2007 | 2008 | 2007 | ||||||||||
Revenue | $ | 45,038 | $ | 37,647 | $ | 88,330 | $ | 73,977 | |||||
Cost of revenue | 13,149 | 10,929 | 26,084 | 21,350 | |||||||||
Gross profit | 31,889 | 26,718 | 62,246 | 52,627 | |||||||||
70.8 | % | 71.0 | % | 70.5 | % | 71.1 | % | ||||||
Operating expenses: | |||||||||||||
Research and development | 5,862 | 4,571 | 11,574 | 8,980 | |||||||||
Sales and marketing | 4,027 | 3,170 | 8,033 | 6,036 | |||||||||
General and administrative | 2,198 | 1,712 | 4,165 | 3,456 | |||||||||
Total operating expenses | 12,087 | 9,453 | 23,772 | 18,472 | |||||||||
Income from operations | 19,802 | 17,265 | 38,474 | 34,155 | |||||||||
44.0 | % | 45.9 | % | 43.6 | % | 46.2 | % | ||||||
Interest and other income, net | 720 | 1,280 | 1,879 | 2,460 | |||||||||
Income before income taxes | 20,522 | 18,545 | 40,353 | 36,615 | |||||||||
Provision for income taxes | 7,060 | 6,382 | 13,841 | 12,460 | |||||||||
Net income | $ | 13,462 | $ | 12,163 | $ | 26,512 | $ | 24,155 | |||||
Earnings per share: | |||||||||||||
Basic | $ | 0.44 | $ | 0.40 | $ | 0.86 | $ | 0.79 | |||||
Diluted | $ | 0.43 | $ | 0.39 | $ | 0.85 | $ | 0.77 | |||||
Shares used in the calculation of earnings per share: | |||||||||||||
Basic | 30,769 | 30,643 | 30,748 | 30,570 | |||||||||
Diluted | 31,351 | 31,266 | 31,311 | 31,202 |