Exhibit 99.1
Hittite Microwave Corporation (ticker: HITT, exchange: NASDAQ) News Release -
February 19, 2009.
Hittite Microwave Corporation Reports Financial Results for the Fourth Quarter
of 2008
CHELMSFORD, Mass., Feb. 19 /PRNewswire-FirstCall/ -- Hittite Microwave
Corporation (Nasdaq: HITT) today reported revenue for the fourth quarter ended
December 31, 2008 of $46.4 million, representing an increase of 9.2% compared
with $42.5 million for the fourth quarter of 2007 and an increase of 1.9%
compared with $45.5 million for the third quarter of 2008. Net income for the
quarter was $13.6 million, or $0.45 per diluted share, an increase of 1.9%
compared with $13.4 million, or $0.43 per diluted share, for the fourth quarter
of 2007, and a decrease of 0.5% compared with $13.7 million, or $0.44 per
diluted share, for the third quarter of 2008.
"Our fourth quarter was an excellent finish to the year, and our employees
should be proud of the results they delivered," said Stephen Daly, Chairman and
CEO. "We are also pleased to have received in December a $35.0 million
multi-year production order for microwave subsystems that will be used in an
advanced U.S. military weapon system. Moving to the production phase of this
project marks the successful completion of several years of effort by our
advanced subsystems development team, for which they should be congratulated.
For 2009, we will remain focused on expanding our technology portfolio, gaining
market share, managing expenses and positioning the company for growth."
For the fourth quarter of 2008, revenue from customers in the United
States was $19.1 million, or 41% of the company's total revenue, and revenue
from customers outside the United States was $27.3 million, or 59% of total
revenue. Gross margin was 72.0% for the fourth quarter as compared with 70.8%
for the fourth quarter of 2007 and 72.5% for the third quarter of 2008.
Operating income for the fourth quarter was $20.9 million, or 45.1% of revenue.
Total cash and cash equivalents at the end of 2008 was $180.9 million, a
decrease of $4.8 million for the quarter.
For the full year 2008, revenue was $180.3 million, a 15.2% increase over
$156.4 million for 2007. Net income for the year was $53.8 million, or $1.74 per
diluted share, an increase of 5.1% over $51.2 million, or $1.64 per diluted
share, for 2007. For the year ended December 31, 2008, the company repurchased
1,317,000 shares of the company's stock for $41.6 million. Net bookings for 2008
were $183.4 million, a 15.9% increase over bookings of $158.3 million in 2007.
The backlog at December 31, 2008 was $39.6 million compared with $36.5 million
at December 31, 2007, and included $2.7 million attributable to the $35.0
million defense contract entered into in the fourth quarter. Deliveries and
related revenue under this contract are expected to commence in 2010.
Business Outlook
The company expects revenue for the first quarter ending March 31, 2009 to
be in the range of $36.0 million to $38.0 million and net income to be in the
range of $8.3 million to $10.2 million, or $0.28 to $0.34 per diluted share. The
decline in the revenue and profitability outlook reflects the likely impact of
the current global economic downturn and related disruption in credit markets on
the company's target markets.
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 http://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 8125411. Following the call, a webcast replay will
also be available by visiting the Investor Relations page at
http://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, limiting amplifiers, mixers and converters, modulators and
demodulators, oscillators, passives, phase lock loop (PLL), phase shifters,
power detectors, sensors, switches, synthesizers, transimpedance amplifiers 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: the impact of the current recession, the related
disruption in credit markets and the deteriorating macro-economic conditions on
demand for our products; 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 long term growth and expansion of our business will
continue; 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 September 30, 2008, as filed with the Securities and Exchange
Commission.
Hittite Microwave Corporation
Condensed Consolidated Balance Sheets
(In thousands)
December 31, December 31,
2008 2007
------------ ------------
Assets
Current assets:
Cash and cash equivalents $180,856 $ 65,735
Available-for-sale investments -- 99,007
Accounts receivable, net 27,650 22,253
Inventories 13,981 14,129
Deferred costs 139 242
Income taxes receivable 20 1,072
Prepaid expenses and other current assets 1,127 677
Deferred taxes 6,206 4,281
-------- --------
Total current assets 229,979 207,396
Property and equipment, net 17,927 18,824
Other assets 7,178 8,275
-------- --------
Total assets $255,084 $234,495
======== ========
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 2,778 $ 2,647
Accrued expenses 6,836 6,121
Deferred revenue and customer advances 3,471 6,098
-------- --------
Total current liabilities 13,085 14,866
Long-term income taxes payable 4,689 3,180
Deferred taxes 381 156
-------- --------
Total liabilities 18,155 18,202
Total stockholders' equity 236,929 216,293
-------- --------
Total liabilities and stockholders' equity $255,084 $234,495
======== ========
Hittite Microwave Corporation
Condensed Consolidated Statements of Operations
(In thousands except per-share data)
Three Months Ended Year Ended
December 31, December 31,
-------------------- --------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenue $ 46,393 $ 42,501 $180,251 $156,412
Cost of revenue 12,968 12,428 51,556 45,363
-------- -------- -------- --------
Gross profit 33,425 30,073 128,695 111,049
72.0% 70.8% 71.4% 71.0%
-------- -------- -------- --------
Operating expenses:
Research and development 6,460 4,773 24,438 18,546
Sales and marketing 3,967 3,992 15,988 13,313
General and administrative 2,065 1,937 8,347 7,316
-------- -------- -------- --------
Total operating expenses 12,492 10,702 48,773 39,175
-------- -------- -------- --------
Income from operations 20,933 19,371 79,922 71,874
45.1% 45.6% 44.3% 46.0%
Interest and other income, net 460 1,355 3,077 5,548
-------- -------- -------- --------
Income before income taxes 21,393 20,726 82,999 77,422
Provision for income taxes 7,761 7,351 29,157 26,184
-------- -------- -------- --------
-------- -------- -------- --------
Net income $ 13,632 $ 13,375 $ 53,842 $ 51,238
======== ======== ======== ========
Earnings per share:
Basic $ 0.46 $ 0.44 $ 1.77 $ 1.67
======== ======== ======== ========
Diluted $ 0.45 $ 0.43 $ 1.74 $ 1.64
======== ======== ======== ========
Shares used in the calculation of
earnings per share:
Basic 29,930 30,703 30,473 30,630
======== ======== ======== ========
Diluted 30,291 31,352 30,955 31,263
======== ======== ======== ========
Contact:
William W. Boecke
V.P. and Chief Financial Officer
(978-250-3343)