EX-99.1 2 v140867_ex99-1.txt 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)