Exhibit 99.1
Press Release
HITTITE MICROWAVE CORPORATION REPORTS FINANCIAL RESULTS
FOR THE FIRST QUARTER OF 2007
CHELMSFORD, MA - April 26, 2007 - Hittite Microwave Corporation
(NASDAQ:HITT) today reported revenue for the first quarter ended March 31, 2007
of $36.3 million, representing an increase of 30.4% compared with $27.9 million
for the first quarter of 2006 and an increase of 2.6% compared with $35.4
million for the fourth quarter of 2006. Net income for the quarter was $12.0
million, or $0.39 per diluted share, an increase of 36.0% compared with $8.8
million, or $0.29 per diluted share, for the first quarter of 2006, and compared
with $12.1 million, or $0.39 per diluted share, for the fourth quarter of 2006.
"Our first quarter was a strong start to the year and our business
continues to grow," said Stephen Daly, Chairman and CEO. "We see expanding
customer acceptance of our existing and new products in all our target markets.
Our product development team continues to execute, and during the quarter we
introduced 21 new products, including our first pure silicon CMOS product for
the broadband market."
For the first quarter of 2007, revenue from customers in the United States
was $16.3 million, or 45% of the company's total revenue, and revenue from
customers outside the United States was $20.0 million, or 55% of total revenue.
Gross margin was 71.3% for the first quarter compared with 73.7% for the prior
year's quarter and 70.8% for the fourth quarter of 2006. Operating income for
the first quarter was $16.9 million, or 46.5% of revenue. Total cash and
investments at the end of the first quarter 2007 was $135.7 million, an increase
for the quarter of $13.1 million.
Business Outlook
The company currently expects revenue for the second quarter ending June
30, 2007 to be in the range of $36.5 million to $37.5 million and net income to
be in the range of $11.9 million to $12.5 million, or $0.38 to $0.40 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 the Events Calendar. A telephonic replay of the
call also will be available for one week after the live call by dialing (719)
457-0820, access code 4608250. 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 and subsystems for technically
demanding radio frequency, or RF, microwave and millimeterwave applications.
Products include amplifiers, attenuators, data converters, frequency dividers
and detectors, frequency multipliers, mixers and converters, modulators,
oscillators, phase shifters, power detectors, sensors, switches and
synthesizers. 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; 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 Annual Report on Form 10-K for 2006 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)
March 31, December 31,
2007 2006
Assets
Current assets:
Cash and cash equivalents $127,664 $ 83,798
Available-for-sale investments 8,021 38,757
Accounts receivable, net 20,364 18,603
Inventories 12,314 10,950
Deferred costs 368 407
Prepaid expenses and other current assets 1,140 1,208
Deferred taxes 4,002 4,028
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Total current assets 173,873 157,751
Property and equipment, net 16,901 14,478
Other assets 812 442
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Total assets $191,586 $172,671
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Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 3,262 $ 1,479
Accrued expenses 5,411 4,886
Income taxes payable 2,780 3,502
Deferred revenue and customer advances 4,356 5,751
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Total current liabilities 15,809 15,618
Long-term income taxes payable 2,207 --
Deferred taxes 739 891
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Total liabilities 18,755 16,509
Total stockholders' equity 172,831 156,162
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Total liabilities and stockholders' equity $191,586 $172,671
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Hittite Microwave Corporation
Condensed Consolidated Statements of Operations (unaudited)
(In thousands except per-share data)
Three Months Ended
March 31,
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2007 2006
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Revenue $36,330 $27,863
Cost of revenue 10,421 7,318
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Gross profit 25,909 20,545
71.3% 73.7%
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Operating expenses:
Research and development 4,409 3,542
Selling and marketing 2,866 2,523
General and administrative 1,744 1,561
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Total operating expenses 9,019 7,626
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Income from operations 16,890 12,919
46.5% 46.4%
Interest and other income, net 1,180 494
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Income before income taxes 18,070 13,413
Provision for income taxes 6,078 4,596
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Net income $11,992 $ 8,817
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Earnings per share:
Basic $ 0.39 $ 0.30
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Diluted $ 0.39 $ 0.29
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Shares used in the calculation of earnings per share:
Basic 30,496 29,005
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Diluted 31,138 30,513
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