14 February 2012

Hittite’s profit and margins trimmed as revenue falls 11.6% in Q4

For full-year 2011, Hittite Microwave Corp of Chelmsford, MA, USA (which designs and supplies analog, digital and mixed-signal RF, microwave and millimeter-wave ICs, modules and subsystems as well as instrumentation) has reported revenue was $264.1m, up 8.1% on 2010’s $244.3m.

However, for fourth-quarter 2011, revenue was just $60.2m, down 8.2% on $65.6m a year ago and 11.6% on $68.1m last quarter. Of total revenue, 46% ($27.7m) came from customers in the USA (versus $30.3m, or 44.4%, last quarter) and 54% ($32.5m) came from outside the USA (versus $37.8m, or 55.6%, last quarter).

Gross margin has fallen from 74.5% (both a year ago and last quarter) to 74%. Operating income was $24.6m (an operating margin of 40.9% of revenue), down from $33.3m (48.8% operating margin) last quarter and $32.2m (49.1% operating margin) a year ago.

Net income was $21.2m, down on $22.4m last quarter but up on $20.9m a year ago (and above the expected $15.2-16.5m). However, Q4 included a $5.5m tax benefit related to the resolution of a tax audit. Net income for the year was $84.7m, up from 2010’s $77m. During the fourth quarter, total cash and cash equivalents rose by $2.5m, to $353.7m.

Net bookings for 2011 were $256.9m, up slightly from 2010’s $254.9m. Order backlog at the end of December was $67.4m (down from $74.5m at the end of 2010).

For first-quarter 2012, Hittite expects revenue to grow sequentially to $61-63m (though still down year-on-year from Q1/2011’s $67.2m). Net income should be $15.5-16.3m (roughly level on Q4, after excluding that quarter’s $5.5m tax benefit).

See related items:

Hittite sees rebound in margins and profits in Q3/2011

Hittite continues growth in Q2

Hittite maintains growth in Q1

Tags: Hittite

Visit: www.hittite.com