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| 8-K - HITTITE MICROWAVE CORPORATION 8-K - HITTITE MICROWAVE CORP | a50799268.htm |
Exhibit 99.1
Hittite Microwave Corporation Reports Financial Results for the Fourth Quarter of 2013
Company Initiates Quarterly Cash Dividend
CHELMSFORD, Mass.--(BUSINESS WIRE)--February 6, 2014--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.”
For the full year 2013, revenue was $273.8 million, a 3.6% increase from $264.4 million for 2012. Net income for the year was $70.9 million, or $2.28 per diluted share, an increase of 3.4% from $68.6 million, or $2.22 per diluted share, for 2012. Net bookings for 2013 were $267.1 million, compared with $264.2 million for 2012. Backlog at December 31, 2013 was $60.5 million compared with $67.2 million at December 31, 2012.
Quarterly Dividend
The Company additionally announced that its Board of Directors has approved the initiation of a quarterly cash dividend, and has declared a dividend of $0.15 per share, payable on March 27, 2014, to shareholders of record as of the close of business on March 4, 2014. Future dividend declarations, as well as record and payment dates, are subject to board approval.
"Our operating model provides the financial foundation to support both a dividend and our growth plans," said Mr. Hess. “The Board's decision to initiate a quarterly dividend reflects our confidence in our financial position and in our future prospects. We are pleased that we can provide a regular quarterly dividend while maintaining a strong balance sheet.”
Business Outlook
The company expects revenue for the first quarter ending March 31, 2014 to be in the range of $67.5 million to $69.5 million and net income to be in the range of $15.3 million to $16.5 million, or $0.49 to $0.53 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) 629-9692. 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 4659521. 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 September 30, 2013, as filed with the Securities and Exchange Commission.
| Hittite Microwave Corporation | |||||||||||||
| Condensed Consolidated Balance Sheets (unaudited) | |||||||||||||
| (In thousands) | |||||||||||||
| December 31, 2013 | December 31, 2012 | ||||||||||||
| Assets | |||||||||||||
| Current assets: | |||||||||||||
| Cash and cash equivalents | $ | 118,600 | $ | 269,157 | |||||||||
| Marketable securities | 353,947 | 140,069 | |||||||||||
| Accounts receivable, net | 36,186 | 30,921 | |||||||||||
| Inventories | 76,020 | 65,926 | |||||||||||
| Income taxes receivable | 5,991 | 1,566 | |||||||||||
| Prepaid expenses and other current assets | 2,997 | 2,761 | |||||||||||
| Deferred taxes | 13,399 | 14,988 | |||||||||||
| Total current assets | 607,140 | 525,388 | |||||||||||
| Property and equipment, net | 39,433 | 36,294 | |||||||||||
| Deferred taxes | 1,725 | 709 | |||||||||||
| Other assets | 8,190 | 11,172 | |||||||||||
| Total assets | $ | 656,488 | $ | 573,563 | |||||||||
| Liabilities and Stockholders' Equity | |||||||||||||
| Current liabilities: | |||||||||||||
| Accounts payable | $ | 4,971 | $ | 3,205 | |||||||||
| Accrued expenses | 10,386 | 12,889 | |||||||||||
| Income taxes payable | 193 | 584 | |||||||||||
| Deferred revenue and customer advances | 6,735 | 4,699 | |||||||||||
| Total current liabilities | 22,285 | 21,377 | |||||||||||
| Long-term income taxes payable | 5,839 | 412 | |||||||||||
| Deferred taxes | 232 | 446 | |||||||||||
| Other liabilities | 103 | 124 | |||||||||||
| Total liabilities | 28,459 | 22,359 | |||||||||||
| Total stockholders' equity | 628,029 | 551,204 | |||||||||||
| Total liabilities and stockholders' equity | $ | 656,488 | $ | 573,563 | |||||||||
| Hittite Microwave Corporation | ||||||||||||||||
| Condensed Consolidated Statements of Operations (unaudited) | ||||||||||||||||
| (In thousands except per-share data) | ||||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Revenue | $ | 68,775 | $ | 68,515 | $ | 273,815 | $ | 264,395 | ||||||||
| Cost of revenue | 22,502 | 18,296 | 79,040 | 69,415 | ||||||||||||
| Gross profit | 46,273 | 50,219 | 194,775 | 194,980 | ||||||||||||
| 67.3 | % | 73.3 | % | 71.1 | % | 73.7 | % | |||||||||
| Operating expenses: | ||||||||||||||||
| Research and development | 11,823 | 12,449 | 49,764 | 49,202 | ||||||||||||
| Sales and marketing | 6,105 | 6,319 | 23,516 | 23,966 | ||||||||||||
| General and administrative | 3,364 | 3,468 | 13,855 | 14,598 | ||||||||||||
| Total operating expenses | 21,292 | 22,236 | 87,135 | 87,766 | ||||||||||||
| Income from operations | 24,981 | 27,983 | 107,640 | 107,214 | ||||||||||||
| 36.3 | % | 40.8 | % | 39.3 | % | 40.6 | % | |||||||||
| Interest and other income (expense), net | (95 | ) | 68 | 238 | 57 | |||||||||||
| Income before income taxes | 24,886 | 28,051 | 107,878 | 107,271 | ||||||||||||
| Provision for income taxes | 8,360 | 10,337 | 36,965 | 38,702 | ||||||||||||
| Net income | $ | 16,526 | $ | 17,714 | $ | 70,913 | $ | 68,569 | ||||||||
| Earnings per share: | ||||||||||||||||
| Basic | $ | 0.54 | $ | 0.58 | $ | 2.32 | $ | 2.26 | ||||||||
| Diluted | $ | 0.53 | $ | 0.57 | $ | 2.28 | $ | 2.22 | ||||||||
| Weighted average shares outstanding: | ||||||||||||||||
| Basic | 30,672 | 30,401 | 30,609 | 30,359 | ||||||||||||
| Diluted | 31,174 | 31,003 | 31,093 | 30,895 | ||||||||||||
CONTACT:
Hittite Microwave Corporation
William W. Boecke,
978-250-3343
V.P. and Chief Financial Officer